For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. In a market with a lot of growing airlines, MAS has still managed to sustain its competitive advantage even during critical situations. Need Strategic Analysis for this company? The global airline industry is really enormous and plays an important role in global trades. However, there are various factors which affect the inclination towards self-employment. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. The research finding has revealed that factors like age, gender, family income, entrepreneurship course etc. As the aviation business can be profitable in the long term, the government may want to invest. It helps to analyze the business condition and potentials of any company or service. 1190 Words; 5 Pages; Decent Essays. The aviation leader provides various commercial services specialized and tailored to traveler needs, such as MHbiz Travel, Government Travel, Flight Simulator, Charter Services, MHexplorer, AMAL and Enrich BizConnect, for government officials, corporate travel and tourism travelers. - Attitude towards Leisure Khazanah Mas's should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. Malaysia Airlines: The Marketing Challenge after MH370 and MH17 case study (referred as Mas Malaysia for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Sales & Marketing and strategic management. - Inequality Index / Ranking on Gini Index Gini Index and level of inequality are a great barometer for harmony and development of a society. Analyze the Khazanah Mas's external competitive environment to identify opportunities and threats. PESTEL ANALYSIS OF MALAYSIA AIRLINES POLITICAL Taxation - an obstacle during recession. As population is ageing it will require less tech intensive products. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. However, it was limited to the airmail routes of European nations. Do you want us to design a market survey or write a market research report as per your specific requirements? We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Malaysia Aviation Group (MAG) and Malaysia Airlines have introduced the MAG Sustainability Blueprint in 2020, which aims to achieve the target of becoming a net zero carbon emission airline by 2050, together with its oneworld alliance partner airlines. - Attitude towards Savings The culture of saving in US and China is totally different where savings rate in China is around 30% , it is well below 15% in United States. At EMBA PRO, Mas Malaysia should assess to what level the local market is prepared to roll out the 5G connectivity. Malaysia Airlines Berhad SWOT and PESTLE analysis has been conducted by Muskan Arya and reviewed by senior analysts from Barakaat Consulting. Moreover, should MAS's new CEO pre-announce publicly his intentions? - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. Airlines are reducing their carbon emissions in response to climate change risks: Malaysia Airlines has promoted efforts in reduction of carbon emissions through initiatives such as CORSIA, Carbon Offsetting and Reduction Scheme for International Aviation set by the ICAO in 2016. - Level of Social Concerns & Awareness in Society Higher level of social concerns in the society often result higher consumer activism and pressure from non-governmental organizations, & pressure groups. PESTLE analysis. The companies need to invest in technology and bring in continuous changes to ensure the security and safety of the passengers. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Mas Malaysia business model. Airline Industry Analysis. Importance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps - 1. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. How it impacts the demand in the economy. - Empowerment of Supply Chain Partners Mas Malaysia should analyze areas where technology can empower supply chain partners. For example the power structure in US economy is slowly moving towards the older generation as that generation has higher disposable income compare to the younger generation. Khazanah Mas's should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. Air transport started in the 1920s. This assessment tool is useful as a macro environmental tool to understand the performance of the firms and to monitor overall progress. MULTINATIONAL ENTERPRISES IN NIGERIA, THE CHALLENGES OF ACHIEVING MILLENNIUM DEVELOPMENT GOALS IN NIGERIA: SMALL AND MEDIUM SCALE ENTERPRISES: AN OPTION, STRATEGY AND STRUCTURE WHICH COMES FIRST, ACCOUNTING FOR ENVIRONMENTAL COST IN HOSPITALS: BARRIERS AND MOTIVATIONS A CASE STUDY ON AL BASLE HOSPITAL IN TARTOUS CITY, BUSINESS ENVIRONMENT IN AUSTRALIA: A GLOBAL PERSPECTIVE, E-LOYALTY IN MARKETING: IMPLICATIONS FOR E-CUSTOMER FOCUS, THE AGILITY OF INDIA'S TOURISM INDUSTRY ON THE HEELS OF MODERN TECHNOLOGY ICT IN FOCUS 1. The rules help to protect the environment and to ensure the safety of the passengers. This report contains the table contents only. Free Summary Report 1. In 2021, the company was awarded with COVID-19 7-Star Rating by airlineratings.com 2020. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. - Level of Acceptance of Technology in the Society Mas Malaysia has to figure out the level of technology acceptance in the society before launching new products. Malaysian Airlines was subject to litigation due to missing passengers, 1. India got its first airline in 1932. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. If you want to know more about how to make a PESTEL analysis diagram in EdrawMax Online, just check this PESTEL guide, it may help you to create diagrams without efforts. It may lead the companies to lower their prices, and as a result, thousands can lose their job. This will help in better predicting the environment policy of the country. It has affected the airline industry to a certain level. - Threat of Terrorist Attacks We believe in the world of post 9/11, corporations such as Mas Malaysia have to live with operating under the shadow of a terrorist attack. Malaysia Airline also became the first official partner of Team MAS, a flagship partnership programme for all sports assets under the Ministry of Youth and Sports Malaysia, National Sports Council of Malaysia and the National Sports Institute of Malaysia, equivalent to the Olympic Partner Programme of the International Olympic Committee. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Mas Malaysia products and prices of overall products have remained sticky in the US market. It can enable Mas Malaysia to hire skilled workforce at competitive salaries. Pratap, A., 2021. Khazanah Mas's should have capabilities to navigate under this hyper sensitive environment. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. The most critical and delicate situation is to withhold the best talent in the organization. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. For example, if there are cases of employee harassment or passenger mistreatment, those events can create a deep impact on their business. These paper overviews several theoretical approaches to explore the strategic marketing planning process of the Starbucks Malaysia. The trades as well as all the factors are interrelated. Two major regions Peninsula of Malaysia and East Malaysia of Borneo are divided by the South China Sea. 'PESTLE Analysis | Generating Better Profit Margin for an Airline Industry', PESTLE Analysis, [online]. Malaysia Airlines (MH) has collaborated with Japan Airlines (JL) since July 25, 2020 to further optimize the convenience of travelling between Japan and Malaysia, allowing customers to benefit from more flight choices. It is written by Neeraj Pandey, Gaganpreet Singh and shed light on critical areas in field of Sales & Marketing, Crisis management, Customers, Organizational culture that the protagonist in the case study is facing. 2020 in order to break the COVID- bondage (Tang, 2020; Shah, et al., 2020). For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Increase in jet fuel prices decreases profits for airlines, 1. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. - Paris Climate Agreement and Commitment of National Government under the Agreement What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country. If the process is consistent and transparent then Mas Malaysia can plan ahead with greater conviction. If the legal system is not strong then Khazanah Mas's can face numerous challenges from consumer petitions to shakedowns from authorities. Malaysian Hospitality is world renowned, and Malaysia Airlines hospitality and services are world class, with its superior luxury and business class travel, Golden Lounge, In-flight offerings such as movies, TV, games, music, tasty in-flight meals and duty-free shopping. 'A PESTLE analysis of the aviation industry', notesmatic, [online]. Choosing the vision, mission and the reason of existence for Mas Malaysia. 50 international and 35 domestic destinations Excellent advertising and marketing strategies Decrease of ticket prices Promotions Advantage for domestic and international travelers Malaysia Airlines Berhads vision is to become, An Airline of Excellence.. It can lead to uncertainty and suppression of consumption in both short term and long term. A keen eye on the security of passengers and technical superiority can help the airline industry concerning their business expansion. Though the number of passengers has increased over the years, most airline companies failed to see a surge in their revenue. Shaw, A., 2021. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. With its hub in Kualalampur, the airlines fleet consists of 15 A333, 6 A359 and A332 and 44 B738. - Transparency in Judiciary System & Processes Transparency is essential for fair and consistent decision making. Malaysia Airlines is an airline that operates flights from its headquarters in Kuala Lumpur. INTRODUCTION OF PESTEL ANALYSIS For the development of any country many factors plays vital role. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. STEP 5: PESTEL/ PEST Analysis of Malaysia Airlines Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future. Malaysia is a country located in the southeast of the Asian continent. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Often companies enter the arena without requisite infrastructure to support the technology oriented model. In 2020, the airline won various award in the Cellar in the Sky Awards, Graduan Award among many others. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Please note that you agree to receive email updates from us on our new reports and solutions. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, SWOT Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, 5C Marketing Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, 4P Marketing Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Porter Five Forces Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Porter Value Chain Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Case Memo & Recommendation Memo of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Blue Ocean Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Marketing Strategy and Analysis Malaysia Airlines: The Marketing Challenge after MH370 and MH17, VRIO /VRIN Analysis & Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, PESTEL / STEP / PEST Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Case Study Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, SWOT Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Superb Trucks LP: How to Conduct a Field Experiment PESTEL / PEST / STEP Analysis & Solution, Airbnb: WhatA?s Next? Employee turnover is the never ending problem faced by the Indian IT industry due to less compensation and less career growth, dissatisfaction with the work environment or with the superiors, less onsite opportunities and misbalance between personal and professional life. Although plenty of airlines are currently operating in the industry, there are . Use of data and predictive analytics, AI to boost revenue in airline industry, 1. Definition of PESTEL / PEST / STEP Analysis. PESTEL ANALYSIS FOR MALAYSIAN AIRLINES: PESTEL refers to political, economic, social, technological, environmental and legal factors. do not influence undergraduate students to opt for entrepreneurship. - Waste Management What is the policy of waste management in the prospective market and how Khazanah Mas's can adhere to the waste management requirements in that market. Published by HBR Publications. This can help Mas Malaysia to bring in more transparency and make supply chain more flexible. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Khazanah Mas's. Subsidiaries, Partnerships and Collaborations Report. Khazanah Mas's can make strategies based on the stable political environment. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. The government has set up some strict rules and guidelines for the operation of an airline which can ensure the utmost security of the passengers. Porter's competitive analysis framework was used to analyze the main elements that helped to gain competitive advantage in the aviation industry.The study also used SWOT analysis to examine internal factors that enabled MAS to improve its strategic management. - Unrest within the Country & Chances of Civil Unrest We dont think that Mas Malaysia business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Otherwise, this can be a massive concern in the future. Higher inflation may require Khazanah Mas's to continuously increase prices in line of inflation which could lead to lower levels brand loyalty and constant endeavors to manage costs. The airlines also need to keep an eye on the comfort of the passengers. Feel free to connect with us if you need business research. Malaysia Airlines is also exploring carbon friendly technologies that are available at London Heathrow such as utilizing electrical ground power to electric pushback. Political factors: Malaysia's stable government is rot with corruption Economic factors: Moving into new industries means a low unemployment rate The purpose of this research is to examine the effects of external environment pertaining to the marketing strategy of Starbucks, a coffee chain in Malaysia. Attitude towards immigration has come under sharp focus. SKIREC Publication- UGC Approved Journals. The main aim of this study is to examine the impact of amnesties on non-performing loans (NPLs) in Northern Cyprus. What are the PESTLE insights for Malaysia? For example most of EU countries now want the EU citizen data to be saved in EU countries only. The capital of Malaysia is Kuala Lumpur. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. - Time Taken for Court Proceedings Even if the country has best of the laws, it doesnt mean much if they cant be enforced in a timely manner. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. It can help them to offer a safe and comfortable service. and its background in Malaysia, and a PESTEL analysis and Porter's Five Force analysis will also be included in this written assignment. The SWOT analysis for Malaysian Airlines is presented below in a matrix followed by the detailed analysis report: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Mas Malaysia. Feel free to connect with us if you need business research. Available at: https://notesmatic.com/airlines-industry-pestel/ (Accessed 21 June 2021). - Cost of Production and Trends Khazanah Mas's should assess - What are the cost of production trends in the economy and level of automatization. In 1963 it was renamed to Malaysia Airlines Ltd after the. PESTEL analysis airline industry can show how the financial situation of a nation can impact the airline industry: Recession and unstable economic conditions can severely affect the airline industry. This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. PESTLE analysis PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning components of strategic management. - Influence of Climate Change How climate change will impact Mas Malaysia business model and supply chain. SWOT & PESTLE.com (2023). The remaining section under "Environment" is available only in the 'Complete Report' on purchase. This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. Here is a PEST analysis for airline industry to give you a better idea. - Gender Composition in Labor Market Mas Malaysia can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and womens say in matter of societal issues and consumption decisions. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. - Financial Market Structure and Availability of Capital at Reasonable Rates The quantitative easing policy of Federal Reserve has led to liquidity flooding all across the global financial markets. Digital Marketing and Social Media Strategy Analysis Report. Strong partnerships with other airlines, groups and companies: Malaysia Airlines has expanded and improved its operation through various partnerships in recent years. Developing strategies that can capitalize on Mas Malaysia strengths and help mitigate weaknesses and impact of threats of macro-environment. The manpower in hotels in the form of trainees from hotel management institutes plays a major role in the operations in the hotels. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. - Employment Rate If the employment rate is high then it will impact Mas Malaysia strategies in two ways it will provide enough customers for Mas Malaysia products, and secondly it will make it expensive for Mas Malaysia to hire talented & skillful employees. Like other industries, airline industries are also get affected by social conditions. - Intellectual Property Rights Protection Mas Malaysia should assess the level of protection that intellectual property rights get under the legal system of the country. In this PESTLE analysis of Malaysia, you'll see how a few of the political, economic, sociocultural, technological, environmental, and legal factors influence Malaysia to this day. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. The research study presented here has identified various demographic and non-demographic factors affecting youth towards entrepreneurship. Available at: https://pestleanalysis.com/pest-analysis-for-airline-industry/ (Accessed 21 June 2021). This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. The Latest Released Online Travel Agencies (OTAs) Services market study has evaluated the future growth potential of Global Online Travel Agencies (OTAs) Services market and provides information . Strategy planning process often requires five steps - Threat of Terrorist Attacks We believe in the world of post 9/11, corporations such as Khazanah Mas's have to live with operating under the shadow of a terrorist attack. The bond rating of national government is investment grade. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. But this strategy entails risks when interest rate will go up. There are massive PESTEL templates and symbols to choose from, and creating a PESTEL analysis diagram could be really simple. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. Malaysia Airlines partners ReveMax to enhance revenue strategy -https://www.theedgemarkets.com/article/malaysia-airlines-partners-revemax-enhance-revenue-strategy, 5. Khazanah Mas's has to assess whether it can live with the fast pace of technology disruption in its industry. Travelers confidence in air travel is increasing slowly, 1. - Health & Safety Laws What are the health and safety laws in the country and what Mas Malaysia needs to do to comply with them. In the United Kingdom, due to Heathrows long runway, Malaysia Airlines pilots use idle reverse thrust power while stopping the aircraft allowing for 18KG of fuel to be saved per landing, which over the course of a month reduces approximately 3,420KG of carbon dioxide from being emitted. Increasing operational cost due to newly imposed wage policy by government. Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. MAGs sustainability program will contribute towards the SDGs for aviation carbon and GHG emission reduction, fuel conservation and climate change. Kuala Lumpur is the capital of the country. Choosing the vision, mission and the reason of existence for Khazanah Mas's. Like most other businesses, the airline industry is also affected by the nation's unstable political condition. It has decimated the culture of savings as people dont have enough to save. Choosing the vision, mission and the reason of existence for Mas Malaysia. The whole world is connected via airlines. Choosing the vision, mission and the reason of existence for Khazanah Mas's. 2. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. The assumption is that if the country is able to audit its current environment and assess potential changes, it will be better placed - Democracy & Other Democratic Institutions According to Nabil N. El-Hage, Leslie S. Pierson the democratic institutions are needed to be strengthened further so that business such as Khazanah Mas's can thrive in an open, transparent and stable political environment. 1211 Words; . Civil society groups are influential not only in policy making but also in building a society wide narrative. . Attracting the talented employees is not a problem with IT Industry but to retain employees is the biggest challenge. For the past three years MAS has been undergone dramatic changes that turnaround the position of the company inside the competitive and ever challenging airline industry. Internal emergency, war, or political instability can hinder the business of any airline company. - Technology transfer and licensing issues for Mas Malaysia laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Mas Malaysia can avoid shakedowns and IPR thefts. It has been a worry for the airline companies and the government at the same time. Her neighboring countries are Singapore, Thailand, Indonesia, and Vietnam. Keep it up! If there are airline accidents, and if that is related to the companys carelessness, their business may get severely affected.