AIRPORT INDUSTRY PESTEL ANALYSIS WITH 5 FORCES

Airport Industry Pestel analysis with 5 forces

Airport Industry Pestel analysis with 5 forces

Introduction

The analysis of the external international business environment is designed to identify the strategic opportunities and threats it faces; these are the key forces of change in the business environment that are likely to result in a change of strategy either positively by presenting new strategic growth opportunities to the firm, or negatively by posing threats to the continuation of present strategies. PEST analysis is a simple method of carrying out an environmental audit these influences in order to identify which factors pose these strategic challenges. The airline industry was in trouble prior to 9/11; however, the events of the 9/11 were an unexpected occurrence and had nothing to do with the fundamental viability of the industry. A reimbursement for losses that occurred since 9/11 seems to make sense since the air industry is such a vital part of the overall economy. It would stabilize an important piece of our national infrastructure (The Economist 2000).

In the airport industry dthere is constant demand for drive solutions, air traffic runs smoothly. Some examples where drives are used is in luggage conveyor systems, passenger bridges, lifts, and walkways.

New security measures, increasing passenger numbers and current budget limitations have forced many airports to change the framework of their business. When new investments are made, airports have been critically addressing the short term, long term costs and benefits of the new systems.

Use at luggage conveyor belts

At airports, belt and roll conveyors often bridge large distances between check-in and check-out, and between loading and unloading at the luggage terminals. This is particularly true in airports that encompass large areas. Therefore, modular machine and plant design require decentralized drive technology. The SK 300E TRIO frequency inverter, mounted directly on a NORD gearmotor is a perfect solution at a very competitive cost.

The tormented aviation industry has had a tremendous depressing effect as many prominent airlines have avowed flight decrease and staffing cuts, while putting off orders for aircraft. Reduction in travel will severely influence the lodging industry and convention-related business, which in turn will weigh down one source of earnings for numerous cities.

Main problem started when airlines lost money from nearly a week of idle and diverted planes after 9/11. The second part of the problem is that the public is, understandably, reluctant to resume their normal flying behavior. The first problem is easiest to address, but likely the less costly of the two in the long run. If the industry is unfavorable, such as the airline industry, then all firms suffer. For example, United and Delta are struggling due to high industry rivalry, low cost entrants such as Jet Blue, high bargaining power of key suppliers such as airline pilots, Business models for knowledge-intensive firms should outline a strategy in terms of which clients they will target, what problems they will solve, and how they plan to do this efficiently and ...