Refers to the stability of the economic environment, the attitudes and movements of political parties. This is entwined in government influence on tax policies, trade agreements, legislative Laws, international trade regulations, monopolies and consumer protection. Generally Political forces are influences that present restrictions or opportunities that are not mandatory. There is a positive outlook on the Airline Industry as long as the political environment is stable.
Due to positive policies and passing of laws that support economic growth such as Liberalisation of sky regulatory frameworks as well as tax policies and consumer policies assures an inspiring sign in the industry. Increased competition due to various market offers by different players in the industry. This requires Low cost airlines like Mango to be more innovative in order to retain as well as gain new clients for their services.
A times when policies and aviation regulation become strict it entails airlines such as Mango ECONOMICRefer to the wider economy and include economic growth rates, levels of employment and unemployment, cost of raw materials such as energy, fuels and inputs for production, interest rates, monetary policies, exchange rates and inflation rates. Economic growth is a guaranty of more and more travels within the country and as well as international travels by both locals and foreigners.
Exchange rates are in favour of the rand and low inflation meaning more disposable income results in income growth and high volumes of business for the airline industry. But, of late due to the economic downturn since 2008 this has had a negative impact on the industry. Low cost airlines such as Mango have to come up with effective business strategies that ensure cost effectiveness in operation cost as well increase in price for the services they offer in order to maintain their customer relations as well as gain new ones.
They can be affected by increase in fuel and energy prices meaning they have to find more cost effective energy sources as well as come up with cost effective flight schedules. TECHNOLOGICALRefer to the rate of new inventions and development, changes in information and mobile technology, changes in internet and e-commerce and government spending on research. Further involves development of materials, new methods of manufacture, distribution and logistics.
Industry players have to be constantly upgrading and up to date with technological advancements. This also means high expenditures on the players in a bid to keep up with these changes. Airlines such as Mango have to effectively access the need for the technology in line with their service and to what degree certain improvements in technology will bring in relation to customer value. ENVIROMENTALIssues related to limited natural resources, environmental preservation as well as climate change.
Due to environmental awareness issues such as going green there is need the use of more environmentally friendly fuels and energies. Industry will encure high cost in a bid to ensure this. Climate change results in unpredictable weather patterns which in turn causes a disruption in Flight scheduling. Airline like Mango have to look for alternative forms of natural resources that promote environmental preservation that are also cost effective. Flight schedules can be charted around a study of new weather patterns.