PEST Analysis of Airbus
PEST analysis is a method of analyzing the external factors influencing any organization. PEST is the short form for Political Factor, Economic Factor, Socio-Cultural Factor and Technological Factor.
Political Factors:
* The largest growth in air traffic is seen in the Asian region, specifically the middle east. The tension or soured ties between Middle East and US, gives a slightly higher preference to a non US manufacturer and Airbus is an automatic choice.
* The recent deal with the US Air Force for supply of tankers capable of mid air refueling, is a sign of US opening its military contract deals to companies across its borders (Read companies other than BOEING).
* Issues within the EU projected over the shareholders of AIRBUS.
* Politically correct placements of manufacturing facilities prevents airbus from moving production out to more economically friendly countries.
* Liberalization of travels between EU and US has opened up a large demand for air travel between the two region and hence the demand for more aircrafts.
Socio-Cultural Factors:
* Social Mobility has increased the demand for air travel.
* Change in the life style of people and the outlook of people toward air travel being a viable option.
* Higher technological advancements to reduce CO2 emission and Noise generated.
Economic Factors:
* World Sluggish Economy could potentially affect air travel demand.
* Impact of terrorist attacks, wars could also affect demand.
* An increase in military order can bolster demand for Aircrafts.
* Oil price Increase can decrease demand.
* Changes in interests and currency value.
Technological Factors:
* The Aircraft Industry is the one demanding the highest possible degree of R&D and innovations.
* Carbon Fiber to be used in Construction of the body (Eg: A350 XWB with 50% carbon fiber body).
* More Fuel efficient engines for longer range.
* Alternative fuels to negate the effect of increasing oil prices.
Political Factors:
* The largest growth in air traffic is seen in the Asian region, specifically the middle east. The tension or soured ties between Middle East and US, gives a slightly higher preference to a non US manufacturer and Airbus is an automatic choice.
* The recent deal with the US Air Force for supply of tankers capable of mid air refueling, is a sign of US opening its military contract deals to companies across its borders (Read companies other than BOEING).
* Issues within the EU projected over the shareholders of AIRBUS.
* Politically correct placements of manufacturing facilities prevents airbus from moving production out to more economically friendly countries.
* Liberalization of travels between EU and US has opened up a large demand for air travel between the two region and hence the demand for more aircrafts.
Socio-Cultural Factors:
* Social Mobility has increased the demand for air travel.
* Change in the life style of people and the outlook of people toward air travel being a viable option.
* Higher technological advancements to reduce CO2 emission and Noise generated.
Economic Factors:
* World Sluggish Economy could potentially affect air travel demand.
* Impact of terrorist attacks, wars could also affect demand.
* An increase in military order can bolster demand for Aircrafts.
* Oil price Increase can decrease demand.
* Changes in interests and currency value.
Technological Factors:
* The Aircraft Industry is the one demanding the highest possible degree of R&D and innovations.
* Carbon Fiber to be used in Construction of the body (Eg: A350 XWB with 50% carbon fiber body).
* More Fuel efficient engines for longer range.
* Alternative fuels to negate the effect of increasing oil prices.
posted by Imz at
22:03
2 Comments:
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