pestel analysis of spicejet

Credit Ratios4.2.5. Also helps to keep a track of all the changes happening in the environment. Spicejet Ltd Direct Competitors5.2. Hard Copy Mail Delivery (+US$ 190.00), 1.1. Definition of PESTEL / PEST / STEP Analysis. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Lccs Spicejet. The report also enables direct comparison to be made between Spicejet Ltd and its competitors. Financial Ratios Charts4.3. SPICEJET LTD COMPETITORS AND INDUSTRY ANALYSIS, 5.1. Therefore, the aim of doing PEST is to: 1. find out the current external factors affecting an organization; 2. identify the external factors that may change in the future; 3. to exploit the changes (opportunities) or defend against them (threats) better than competitor… According to Michael Porter organizational performance is to large extend determined by various industry forces. 2 – These sections are available only when you purchase a report with appropriate additional types of analyses. Cash Flow4.2. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Essay On Pestel Analysis Of Pepper Lovers 1517 Words | 7 Pages. The political stability for a country is crucial to decide if the company can establish a business in a specific country. If the business is looking to enter a new market or area, then PESTLE Analysis is a recommended tool. Some of the economic factors that Lccs Spicejet should evaluate both in the present market and one in which it wants to enter are – inflation rate, GDP growth rate, disposable income level etc. PESTEL is a strategic analytical tool used to assess external factors affecting businesses. The IFE matrix is utilised in strategy formulation. Sanjeev Prashar, Adeshwar Raja Balaji Pras, V.S. BAC Reports, Email Delivery - PDF (on default), It offers people professionals insight into the external factors impacting their organisation. - Attitude towards Authority – Various cultures in different part of the world have different attitude towards authority. This model includes information about all factors that influence the company’s activity. Internal External Matrix, 11. Feel free to connect with us if you need business research. Engineering & Construction Services Company Report, Computers & Electronic Equipment Company Reports, Software & Technology Services Company Reports, Healthcare Equipment/Supplies Company Reports. Though SpiceJet had a net profit of INR 1.01 billion (US$20.2 million) in fiscal year 2010-2011, the results following the financial year indicated that the company had also joined the ranks of loss-making airlines in India. SWOT analysis is the common technique that helps in knowing the strength, weaknesses, opportunities and threats of the organisation with their impact from macro environment. External Factor Evaluation Matrix10.3. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. - Attitude towards Leisure – Lccs Spicejet should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. The report contains detailed information about Spicejet Ltd that gives an unrivalled in-depth knowledge about internal business-environment of the company: data about the owners, senior executives, locations, subsidiaries, markets, products, and company history. Your company’s business and sales activities will be boosted by gaining an insight into your competitors’ businesses. Parasaran, Vijay Kumar Venna the democratic institutions are needed to be strengthened further so that business such as Lccs Spicejet can thrive in an open, transparent and stable political environment. Spicejet Ltd Industry Analysis5.4.1. Low-cost Carriers in India: SpiceJet's Perspective case study PESTEL analysis includes macro environment factors that impact the overall business environment – Political, Economic, Social, Technological, Environmental, and Legal factors. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. It is written by Sanjeev Prashar, Adeshwar Raja Balaji Pras, V.S. Developing strategies that can capitalize on Lccs Spicejet strengths and help mitigate weaknesses and impact of threats of macro-environment. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. - Demographic Trend – The demographic trend is one of the key factors in demand forecasting of an economy. The report outlines the main financial ratios pertaining to profitability, margin analysis, asset turnover, credit ratios, and company’s long-term solvency. L – LegalLets look at each of these macro-environmental factors in turn.All the external environmental factors (PESTEL factors) Marketing News6.4. Environmental – What environmental and ecological facets, both locally and farther afield, are likely to predetermine the business? The latter are correlated with pertinent news and press releases, and annual and quarterly forecasts are given by a variety of experts and market research firms. PESTEL analysis is mainly the assessment of macro environment factors. Lccs Spicejet should build a strategy that can integrate societal values, infrastructure, and Lccs Spicejet business model. Case Description of Low-cost Carriers in India: SpiceJet's Perspective Case Study This case discusses the emergence of low-cost carriers (LCCs) in India in relation to the growth of the Indian aviation industry and the subsequent fall of the LCCs into financial loss. Published by HBR Publications. China is an economic and political superpower. Strengths3.3. Execution of the strategy and building a feedback loop, using which managers at Lccs Spicejet can fine tune processes and strategies going forward. Political – What opportunities and pressures are brought by political bodies and what is the degree of public regulations’ impact on the business? But this strategy entails risks when interest rate will go up. This will help in better predicting the environment policy of the country. The output from a PESTLE analysis is often used as an input for other business management tools such as SWOT analysis, SOAR analysis, risk assessment, or a Business Model Canvas. Markets and Sales Activities2.4. | The political environment in which airlines operate is highly regulated and favors the passengers over the airlines. Legal Factors, 10.1. All available data is presented in a comprehensive and easily accessed format. The essential difference between the above mentioned matrices lies in the type of factors incorporated in the model; whilst the latter is engaged in internal factors, the former deals exceptionally with external factors – those exposed to social, political, economic, legal, etc. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. - Employment Laws – What are the employment laws in the country and are they consistent with the business model of Lccs Spicejet. Opportunities3.5. PESTEL Analysis Definition. Threats, 4.1. - Business Laws – Before entering into new market – Lccs Spicejet has to assess what are the business laws and how they are different from home market. - GDP Trend & Rate of Economic Growth – The higher GDP growth rate signals growing demand in the economy. tool that is used to identify and analyze the key drivers of change in the strategic or business environment Also the report provides relevant news, an analysis of PR-activity, and stock price movements. Sociological – What cultural and societal aspects will work upon the demand for the business’s products and operations? - Transparency & Digital Drive – Lccs Spicejet can use digitalization of various processes to overcome corruption in the local economy. PESTEL analysis of China . Swot analysis STRENGTH • Entered with RS 99 fares for the first 99 days • Strong backing by the promoters • Having more than 35 destinations in India • Good presence in the market due to its branding and advertising 5. Lccs Spicejet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Key facts1.2. Income Statement4.1.2. In addition, IFE matrix serves as a basis for identifying and assessing relationships amongst those areas. IR Corporate News6.3. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. The External Factor Evaluation matrix (EFE matrix) is a tool of strategic management that is typically utilised to assess current market conditions. SpiceJet was no exception. - Securities Law – What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. - Role Local Governments Play – Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. Analyze Strengths and Weaknesses of Lccs Spicejet. 5. Locations, Subsidiaries, Operating Units, 3.1. PEST or PESTEL analysis is a simple and effective tool used in situation analysis to identify the key external (macro environment level) forces that might affect an organization.These forces can create both opportunities and threats for an organization. - 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. Analyze the Lccs Spicejet external competitive environment to identify opportunities and threats. Another part of the report is a SWOT-analysis carried out for Spicejet Ltd. But, this company is strong enough to … The most comm… - Influence of Climate Change – How climate change will impact Lccs Spicejet business model and supply chain. Managers at Lccs Spicejet need to examine three inter-related environments in order to come up with an effective strategy. | Comparison of Spicejet Ltd and Direct Competitors Stock Charts5.4. It is a mnemonic which expands to Political, Economic, Social, Technological, Legal and Environmental and elements of a business. Legal – What laws and legislation will exert influence on the style the business is carried out? The country enjoys massive political and economic influence over both national and global policymaking, and is recognized as the leading superpower in the world. This tool is especially useful when starting a … Strategy planning process often requires five steps – For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of sudden climate shift. 3. Often companies enter the arena without requisite infrastructure to support the technology oriented model. - Integration of Technology into Society & Business Processes – Uber failed in China because it tried to enter before smartphone were widespread in China. And the legal environment … If the legal system is not strong then Lccs Spicejet can face numerous challenges – from consumer petitions to shakedowns from authorities. By perceiving these outside environments, businesses can maximally benefit from the opportunities while minimizing the threats to the organization. Asset Turnover4.2.4. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. This analysis helps to evaluate all company’s resources and capabilities and bring them together into one aggregate table that includes: The result of the analysis gives a clear picture of company’s competitive and economic implications, answering the questions if the resources mentioned above are: Spicejet Ltd Fundamental Company Report provides a complete overview of the company’s affairs. There is consistency in both policy making and implementations of those policies. It will help Lccs Spicejet in both developing environmentally friendly products and thwarting PR stumble blocks. Lccs Spicejet needs to be careful about building marketing strategy that is dependent on “Purchase on Credit” consumer behavior. Experts Revisions, 9.1. Such information creates your awareness about principal trends of Spicejet Ltd business. Among the many low-cost airlines in India, SpiceJet had been one of the most popular, with the lowest airfares and highest customer value. 1 – Data availability depends on company’s security policy. As population is ageing it will require less tech intensive products. - Gender Composition in Labor Market Lccs Spicejet can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and women’s say in matter of societal issues and consumption decisions. Economic Factors9.3. Environmental Factors9.6. 4. (2.0) Environmental Analysis: For success within the airline industry, an awareness of the external environment is essential. A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework or tool used to analyse and monitor the macro-environmental factors that may have a profound impact on an organisation’s performance. - Mobile Phone & Internet Penetration – Lccs Spicejet should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. The analysis surveys an industry through five major questions: VRIO stands for Value, Rarity, Imitability, Organization. - Research and Development Investment Levels – If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. The main purpose of PEST analysis is to provide the manager or head of the enterprise or company with information regarding the surrounding situation in the world that can be crucial for making decisions. Lccs Spicejet has stringent norms for health and safety norms so in emerging economies it may have to compete with players who don’t have high cost structures that of Lccs Spicejet. E – Environmental 6. • SpiceJet names all its aircraft after various spices and herbs like Cinnamon, Thyme, Oregano. - Segregation of Political Responsibilities between Different Government Agencies – There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. The implication for Lccs Spicejet is that it can boost sales of its product in short run but also expose Lccs Spicejet to medium term forex and currency depreciation risks. 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. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Section 4: SWOT and PESTEL analysis in order to develop depth understanding of the impact of macro environment. How big is the bargaining power of buyers? Airline Industry Snapshot  5.4.2. How to use the strengths to take advantage of the opportunities? Comparison of Spicejet Ltd and Direct Competitors Financial Ratios5.3. Here's a short PEST Analysis I have compiled for one of my discussions in #Edx Course offered by The University of British Columbia : BUSMKTG1x -Introduction to Marketing. Strong competition – SpiceJet faces a lot of competition from its competitors which is a serious threat to the airline services. - Environmental Standards and Regulations both at National & Local Levels – Often the environment policy at national and local level can be different. - Transition of Government and Changes in Policy – There is consistency in policy making from one government to another. Spicejet Ltd is an India-based company engaged in transportation of passengers by air. It has decimated the culture of savings as people don’t have enough to save. external forces. One of the most powerful tools that our digital consultants use when evaluating a business is the “PESTLE Analysis.” This tool is used to examine the external environment of a business. Political Factors9.2. How to overcome the weaknesses that can make the threats a reality? Financial Performance1.3. 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. Economic – What economic policies, trends and structures are expected to affect the organization, what is this influence’s degree? Low-cost Carriers in India: SpiceJet's Perspective case study (referred as “Lccs Spicejet” for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Strategy & Execution and strategic management. What composes a threat of substitute products and services? Technological – What impact do the technological aspects, innovations, incentives and barriers have on the organization? Conclusion: In conclusion, it is a must for Apple to look into all the matters that we discussed in the pestle analysis of it. Lccs Spicejet should be careful about the history of forex risk before entering new market. Social Factors9.4. Spicejet Ltd Industry Position Analysis, 6.1. Technological Factors9.5. This will enable the Lccs Spicejet to determine – if required can it hire talent globally to work in that particular market. The LCCs became important for value-adding and cost-cutting alternatives in corporate business travel. E – Economic 3. - Empowerment of Supply Chain Partners – Lccs Spicejet should analyze areas where technology can empower supply chain partners. - Independence of Judiciary and Relative Influence of Government – The judiciary independence often reflect both strength and credibility of the institutions in the country. Margin Analysis4.2.3. 2. SWOT analysis of SpiceJet analyses the brand/company with its strengths, weaknesses, opportunities & threats. Internal Factor Evaluation Matrix10.2. ID: SK7J3WJXBYEN The report includes financial and SWOT information, industry analysis, opinions, estimates, plus annual and quarterly forecasts made by stock market experts. 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