PESTLE analysis for Air Asia airline

IN DETAIL Vietnam is considering many positive solutions to improve airline company Þ Airline industry can get more benefits The priority of government can impact on the promotion Þ Attr[r]

R FO R I A A A E N R L T T T : IE S V S M R : E E E P LAC DUC P P R O N G E N I L – D U Y E N - H A PESTLE Political influences Economical influences Sociological influences Technological influences Legal influences Environmental influences L PO L A C I IT • Open solution from government • The priority of government • The only one military system IN DETAIL Vietnam is considering many positive solutions to improve airline company Þ Airline industry can get more benefits The priority of government can impact on the promotion Þ Attract passengers & healthy competition with other partners Vietnam just has only one military system => easy to protect the air space BESIDE THE SUPPORT Vietnam has still reluctance with using foreign airlines => Hard to invest Strict about environmental regulations O N O EC IC M E U L F IN • • • • E C N Wages salary Economic growth Unemployment rate Oligopoly market ECONOMIC INFLUENCE Minimum wages salary is lower ECONOMIC GROWTH The economic in Vietnam is growing up annually 15% up in airline market THE UNEMPLOYMENT RATE This rate in Vietnam is high Asia Airline invests to Vietnam ‘s market => more opportunities for workers to have jobs OLIGOPOLY MARKET VIETNAM AIRLINE Stand for 97% of total value Tend to be monopoly ASIA AIRLINE Hard to compete A small share holder in whole air industry L A IC G LO S O E I C NC O E s S e U ti i L F tun IN ppor ats O re h T • • Opportuniti The majority of population is young people es The low rate of those flying - Potential market • The most modern kind of transportation • The safest kind of transportation • Tourism – Many traditional festivals per year 7.966 THE MAJORITY OF POPULATION IS YOUNG PEOPLE (SOURCE: CIA WORLD FACTBOOK) Age distribution in vietnam in 2012 0-14 years 15-64 years 65 years and over THE MOST MODERN KIND OF TRANSPORTATION – MORE LUXURIOUS SERVICES I N N OVAT I O N LUXURY T H E L O W R AT E O F T H O S E F LY I N G POTENTIAL MARKET , , THE PERCENTAGES OF THOSE FLYING IN COUNTRIES Vietnam flying not flying Australia flying not flying N O R O B B E RY THE SAFEST KIND OF TRANSPORTATIO N NO TERRORISM TOURISM • Many traditional (about 7,966) festivals per year • A lot of traditional familial celebrations, eg: ancient's death anniversary • The incresing demand of Vietnamese travelling abroad • The rising demand of foreign tourists visiting Vietnam O I C O S G O L L A IC e r h T I N E U L NF S E C s t a  Language: Vietnamese  Lack of profession, experiences and skills  A weak ability of suffering cold gases  A long-term investment LANGUAGE: VIETNAMESE – VIETNAMESE STAFFS VIETNAM AIRLINE INSTITUTE MOST VIETNAMESE STAFFS HAVE LACK OF PROFESSION, EXPERIENCES AND SKILLS HIRING FOREIGN RETRAINING PILOTS A longterm investme nt TROPICAL WEATHER –PEOPLE HAVE A WEAK ABILITY OF SUFFERING COLD GASES G LO O S N E H C C N E E ies T U FL tunit IN ppor ats O re h T L A IC • Opportuniti The fastest eskind of transportation • Some modern and big international airports with systems of equipment implemented advanced technology for the biggest and modernest aircrafts BIG INTERNATIONAL AIRPORTS AND ADVANCED TECHNOLOGY  Tan Son Nhat, Noi Bai, Da Nang…  many big planes: B747, B767, B777, A350, A380…  Vietnam Airline signed contracts to buy aircrafts Airbus 380 and also buy and rent 11 aircrafts Boeing Dreamliner 787 Click icon to add picture O N H C TE LO L A IC G e r h T s t a N E U L F N I S E C  Few Vietnamese pilot, some of them can drive very big planes  A few airports and very few international airports  Many airports are too oldfashioned to welcome modern aircrafts FEW VIETNAMESE PILOT, SOME OF THEM CAN DRIVE VERY BIG PLANES - HIRE FOREIGN PILOTS A FEW AIRPORTS AND VERY FEW INTERNATIONAL AIRPORTS MANY AIRPORTS ARE TOO OLDFASHIONED TO WELCOME MODERN AIRCRAFTS =>THE DIFFICULT DEVELOPMENT OF DOMESTIC ROUTES E U FL L A O G UN E L RT P P T O H R E A T S INS IT IE E C N Opportunities 1.The increasing foreign trading (imports and exports) makes aviation industry a potential market 2.Petrol’s price on market is another factor supporting the establishment of new airline INCREASING FOREIGN TRADE INCREASING FOREIGN TRADE The more other countries invest in Vietnam, the more important transportation is LOW PETROL’S PRICE Compared with the world market, Vietnamese legal price of petrol is still lower L A G E L TS T H R E A IN E U L F S E C N Restricted employment due to lack of legal institutes Legislation states that there are several airports which cannot be used High taxation RESTRICTED EMPLOYMENT - The only institute - Location: Ho Chi Minh City -> lack of access and limited opportunity for vocational training in different cities MILITARY AIRPORTS CANNOT BE USED Only used for military purposes (safety, political reasons) HIGH TAXATION - Considerably high - Suffer from taxation 1,4 – times higher than other countries E M N O S R E I C S V E NI T I N E E U UN FLO R T S INO P P R E A T T H L A T N Opportunity Currently no particular environmental legislation about amount of emission is applied NO PARTICULAR LEGISLATION ON EMISSION - Emission tax law in EU - Offer flexible respond for business L A T EN M N O S R E I C V N N E E U L F AT S IN H R E T Threats Pollution Access to materials POLLUTION - CO2 is directly released to the sky - Noise pollution around areas where business is run - Land pollution ACCESS TO MATERIALS - Large area for airports to build airways and other essential departments REFERENCES • http://www.indexmundi.com/vietnam/demographics_profile.html • http:// news.zing.vn/kinh-doanh/air-mekong-s-theo-got-hang-khong-ha-dun g/a296923.html • http://www.sggp.org.vn/vanhoavannghe/2012/8/295322/ • http:// www.dalat-info.vn/TIPC-Lamdong-VITIC-CMS-SYSTEM.gplist.82.gpope n.30436.gpside.2.asmx • http://talkvietnam.com/2012/10/increase-in-foreign-tourists-to-vietn am/# UP1L92dWqnY • http://www.vaa.edu.vn/ • http:// www.tinmoi.vn/thi-truong-hang-khong-viet-nam-day-tiem-nang-0110 54169.html • http://en.news.vn/economy/business/30473-vietnam-airlines-plans-to -buy-airbus-a380- html • http://www.baomoi.com/Chat-luong-phi-cong-Nhung-bat-cap-can-thao-go-Bai-3-Hoc-vien-khong-co-hoc-vien/45/434 9178.epi • http:// www.vietnamairlinestickets.com/blog/news/vietnam-airlines-books-to -buy-and-lease-the-boeing-787-9-dreamliner-aircraft.html D N :T E ERS C E U THR O D P R A N G – D U Y E N - 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