Pestle Analysis Of Virgin Atlantic

4.0 PESTLE Analysis

The PEST/PESTLE analysis model refers to analyse the main influence of environment on enterprise, which can be divided into different perspectives: political (or legal), economic, social-cultural and technological (Van den Berg & Pietersma, 2014).

4.1 Political Factors

Political factors relate to government policies, current legislation, stakeholders, anticipated legislation, international rules, employment laws and regulatory processes (Kotler, Kotler &Kotler, 2016). Regarding Open Skies Agreement, the United States will open aviation area to the EU airlines in 2008. European airlines could fly without limits from any point in the EU to any point in the US (European Commission, 2017). It is effective to develop the Virgin

Virgin Atlantic who is the world 's first flight using biofuel by a commercial airline. Using biofuel can be reduce environmental pollution. It can be effective to enhance the Virgin Atlantic brand recognition.

5.0 Porter’s Five Forces

Porter 's Five Forces Model can be defined to analyze of competitiveness in the industry environment to discover opportunities and threats, including the risk of entry by potential competitors, the extent of rivalry between competitors, the bargaining power of buyers, the bargaining power of suppliers and the closeness of substitutes to an industry 's products (Hill, Jones & Schilling, 2016).

5.1 The Risk of Entry by Potential Competitors

The risk of entry by potential competitors is low. The aviation industry needs to many capital investments to prop up. There are many big airline alliances in the industry, including Oneworld, Skyteam, and Star Alliance. The airlines have backed by these airline alliance, so they could get absolute cost advantage to develop. For example, codeshare with other airlines. It is because they can be closer economic co-operation between each other. On the other hand, these airline alliances have already built brand loyalty with customers. Consequently, the new entrants will difficult to develop the

For example, they have provided some different types of recreational activities in the aircraft such as movies, music and seatback TV. It can make the passengers feel relax during the flight. In addition, they have built a new app for customers. They can book, manage and check-in for their flight all from the same place. It can save the time to book, manage and check-in. Besides, they have provided some amenities with passenger-friendly such as free wireless, a cocktail bar, a hair salon, a Cowshed spa, a brasserie and a games room in the new Virgin