The study provides analytical view on the management strategies, which have been undertaken by MAS. Published by HBR Publications. Porter's competitive analysis framework was used to analyze the main elements that helped to gain competitive advantage in the aviation industry.The study also used SWOT analysis to examine internal factors that enabled MAS to improve its strategic management. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Most of the tourists are not interested in visiting countries that have threats due to political conditions. !-Keith GrencherBirmingham Business School. 'PESTLE Analysis | Generating Better Profit Margin for an Airline Industry', PESTLE Analysis, [online]. The BP Healthcare and Enrich by Malaysia Airlines partnership cares for all Malaysians wellbeing - https://www.malaysiakini.com/announcement/568903, 3. This will help in better predicting the environment policy of the country. The capital of Malaysia is Kuala Lumpur. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. In this PESTLE analysis of Malaysia, you'll see how a few of the political, economic, sociocultural, technological, environmental, and legal factors influence Malaysia to this day. 50 international and 35 domestic destinations Excellent advertising and marketing strategies Decrease of ticket prices Promotions Advantage for domestic and international travelers - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. Environmental, Social, and Governance (ESG) Analysis Report. - Corporate Social Responsibilities Culture Are Khazanah Mas's present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. This assessment tool is useful as a macro environmental tool to understand the performance of the firms and to monitor overall progress. MAGs sustainability program will contribute towards the SDGs for aviation carbon and GHG emission reduction, fuel conservation and climate change. Malaysia Airlines has also partnered with ReveMax and other tech companies to bring about digital transformation in the airlines and is also a part of the oneworld Member Airlines, an alliance of various airlines flying to more than 50 destinations. Political environment and other factors not only impact the cost of doing business but also long term sustainability. American Airlines, and dozens of other companies have been using the strategies of co-opetition to change the game of business to their benefit. . Keep it up! Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - Intellectual Property Rights Protection Mas Malaysia should assess the level of protection that intellectual property rights get under the legal system of the country. - Nature of Social Contract between Government & Society Before entering into a market Khazanah Mas's needs to understand the nature of social contract between government and society. Malaysia Airlines (A) case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. In 2021, the company was awarded with COVID-19 7-Star Rating by airlineratings.com 2020. Reach thousands of academicians and corporates. Khazanah Mas's can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Mas Malaysia business model. - Recycle Policies What are the recycle policies in prospective market and how Mas Malaysia can adhere to those policies. Like other industries, airline industries are also get affected by social conditions. Airlines are reducing their carbon emissions in response to climate change risks, Malaysia Airlines Berhad Porter's Five Forces Analysis, Malaysia Airlines Berhad Value Chain Analysis, Malaysia Airlines Berhad Covid-19 Impact Analysis, Malaysia Airlines Berhad Segmentation, Targeting and Positioning (STP) Analysis, Malaysia Airlines Berhad Ansoff Matrix Analysis, Malaysia Airlines Capital V Cayman Limited, Malaysian Airline System Berhad (Italy, Singapore, Australia). But this strategy entails risks when interest rate will go up. In 2020, the airline won various award in the Cellar in the Sky Awards, Graduan Award among many others. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. In case you need the complete report please purchase using the buy options displayed. The airline has received various awards for its premium and high-quality services. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. USA has avoided the European Union style stagnant economy on the back of slightly higher birth rate and higher level of immigration. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, SWOT Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, 5C Marketing Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, 4P Marketing Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Porter Five Forces Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Porter Value Chain Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Case Memo & Recommendation Memo of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Blue Ocean Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Marketing Strategy and Analysis Malaysia Airlines: The Marketing Challenge after MH370 and MH17, VRIO /VRIN Analysis & Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, PESTEL / STEP / PEST Analysis of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Case Study Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, SWOT Analysis and Solution of Malaysia Airlines: The Marketing Challenge after MH370 and MH17, Superb Trucks LP: How to Conduct a Field Experiment PESTEL / PEST / STEP Analysis & Solution, Airbnb: WhatA?s Next? Some of the economic factors that Mas Malaysia 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. 1. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. The disasters greatly impacted customer confidence, as reflected in the company's declining booking rates and stock prices. 2. Neeraj Pandey and Gaganpreet Singh are affiliated with National Institute of Industrial Engineering (NITIE). What are the PESTLE insights for Malaysia? Malaysian Airlines was subject to litigation due to missing airplane with passengers resulting in loss of brand and consumer confidence, 1. Often companies enter the arena without requisite infrastructure to support the technology oriented model. It is the part of Malaysia Aviation Group, serving over 50 destinations across different nations in the world and operating approximately 300 flights per day. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Khazanah Mas's products and prices of overall products have remained sticky in the US market. PESTLE The SWOT analysis of Air Asia is presented below: Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. At the same time, the economic condition of all the countries has experienced some depression which can affect the airline industry as well. Strong partnerships with other airlines, groups and companies: Malaysia Airlines has expanded and improved its operation through various partnerships in recent years. The airline companies, which operate in countries with political turmoil, may see a sharp decline in revenue. Attitude towards immigration has come under sharp focus. 2. The airline industry is not an exception. There are massive PESTEL templates and symbols to choose from, and creating a PESTEL analysis diagram could be really simple. This section is available only in the 'Complete Report' on purchase. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! Mas Malaysia has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Mas Malaysia. They may get stuck in legal proceedings. 2020 in order to break the COVID- bondage (Tang, 2020; Shah, et al., 2020). Choosing the vision, mission and the reason of existence for Khazanah Mas's. At EMBA PRO, If there is arbitrariness in the judicial process then Khazanah Mas's cant be sure of the judgments. - Attitude towards Leisure Mas Malaysia should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. High level of education often results in better jobs, higher income and higher spending on complex and aspirational products. The PESTLE analysis for Malaysia Airlines is presented below in a table followed by the detailed analysis report. They helped me with my custom research and delivered before time! Top Quality. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. The prudent policy should be to take insurance and other types of hedging instruments to mitigate the losses occurring because of the terrorist attacks. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Khazanah Mas's can borrow cheaply under such circumstances. - Attitude towards Leisure Khazanah Mas's should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. In a market with a lot of growing airlines, MAS has still managed to sustain its competitive advantage even during critical situations. Khazanah Mas's has to assess whether it can live with the fast pace of technology disruption in its industry. The airline which has been recently renamed as Malaysia Airline Berhad and operates flights to Asia, Australasia, Africa, the Americas, Europe, and the Middle East. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Attitude towards immigration has come under sharp focus. Definition of PESTEL / PEST / STEP Analysis. As for the disasters and accidents, on most occasions, Airlines are held responsible. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. - Level of Acceptance of Technology in the Society Khazanah Mas's has to figure out the level of technology acceptance in the society before launching new products. - Consumer Protection Laws Mas Malaysia needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. Most countries have some rules concerning the service. Available at: https://www.spendedge.com/casestudy/pestle-analysis-of-airline-industry (Accessed 21 June 2021). 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. India got its first airline in 1932. PESTEL analysis is mainly the assessment of macro environment factors. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Customized Solutions Malaysia is a Southeast Asian country; it gained her independence in 1957. - Cost of Production and Trends Khazanah Mas's should assess - What are the cost of production trends in the economy and level of automatization. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Kuala Lumpur is the capital of the country. The study explores how Malaysian Airlines has achieved its outstanding performance and sustained its competitive advantage, through effectively implementing strategy. This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. Tourism industry is such a money earner industry that it has the potential to generate foreign exchange and also to make a very active contribution towards growth of overall economy and creation of employment opportunities. Importance of PESTEL Analysis in Strategy Management & Planning Process Strategy planning process often requires five steps - 1. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. Another reboot can Malaysia Airlines get it right this time - https://www.theedgemarkets.com/article/another-reboot-%E2%80%94-can-malaysia-airlines-get-it-right-time. This report provides a PESTLE analysis of both countries for British Airways, which expresses all the factors that are essential to a business's macro environment (Moore & Taylor, 2021). For example Trump not standing by US commitments created an environment of uncertainty. Pestle analysis assesses the extensive social trends that affect the industries and determines the present and future developments that will outline the micro-environments of industry sector. PESTEL ANALYSIS OF MALAYSIA AIRLINES POLITICAL Taxation - an obstacle during recession. Internal emergency, war, or political instability can hinder the business of any airline company. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. Some of the economic factors that Khazanah Mas's 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. - Threat of Terrorist Attacks We believe in the world of post 9/11, corporations such as Mas Malaysia have to live with operating under the shadow of a terrorist attack. The trades as well as all the factors are interrelated. Many external factors contributed to this situation. . This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. Pestle analysis of Malaysia. Choosing the vision, mission and the reason of existence for Mas Malaysia. If there is huge income inequality in the society then the likelihood of conflict and crime increases. This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. The study focuses on employee retention, various factors that affect employee retention and different employee retention strategies adopted by the IT industry. This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. It is written by Neeraj Pandey, Gaganpreet Singh and shed light on critical areas in field of Sales & Marketing, Crisis management, Customers, Organizational culture that the protagonist in the case study is facing. If you want to know more about how to make a PESTEL analysis diagram in EdrawMax Online, just check this PESTEL guide, it may help you to create diagrams without efforts. The remaining section under "Strength" is available only in the 'Complete Report' on purchase. The purpose of this research is to examine the effects of external environment pertaining to the marketing strategy of Starbucks, a coffee chain in Malaysia. However, at the same time, the number of passengers is declining, which can show a negative result in the long run. Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. - Education Level in Society Education level of the society impacts both the quality of jobs and level of income. There are domestic and international flights. In India , people in this sector have understood the pulse of the times .They understand the far reaching effects of our PM Narendra Modi's call for " Make in India " that will definitely lead to the increase in the number of tourists visiting the shores of India. A keen eye on the security of passengers and technical superiority can help the airline industry concerning their business expansion. The research finding has revealed that factors like age, gender, family income, entrepreneurship course etc. About us - https://www.malaysiaairlines.com/my/en/about-us.html, 2. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. 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 bond rating of national government is investment grade. SKIREC Publication- UGC Approved Journals. Malaysia Airlines (MH) has collaborated with Japan Airlines (JL) since July 25, 2020 to further optimize the convenience of travelling between Japan and Malaysia, allowing customers to benefit from more flight choices. INTRODUCTION OF PESTEL ANALYSIS For the development of any country many factors plays vital role. The companies can take on some corporate responsibilities and include environment-conscious messages in their campaigns. Purpose of this agreement is to allow both country to have the right to fly across its territory without landing. Today, thousands of commercial airlines are operating in the airline industry generating vast sums of revenue, such as Ryanair, British Airways, Easyjet, Delta, and Southwest Airlines. Khazanah Mas's should assess to what level the local market is prepared to roll out the 5G connectivity. Holistic Analysis - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Based on the findings of the present study and learning lessons from other countries, the author provides recommendations for universities and policy makers to boost the spirit of entrepreneurship among youth. If there is huge income inequality in the society then the likelihood of conflict and crime increases. Definition of PESTEL / PEST / STEP Analysis. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. Execution of the strategy and building a feedback loop, using which managers at Khazanah Mas's can fine tune processes and strategies going forward. The companies must take advantage of technological innovations to offer a satisfactory service to their passengers. For example most of EU countries now want the EU citizen data to be saved in EU countries only. Analyze the Mas Malaysia external competitive environment to identify opportunities and threats. - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. Recession and unstable economic conditions can severely affect the airline industry. Neeraj Pandey, Gaganpreet Singh (2018), "Malaysia Airlines: The Marketing Challenge after MH370 and MH17 Harvard Business Review Case Study. Cathay Pacific, Iberia, Japan Airlines, Qantas, Malaysia, Airlines Qatar Airways, Royal Air Marco, S7 Airlines, Royal Jordanian, SriLankan Airlines. - Role of Non-Government Organization, Civil Society & Protest Groups The country has a vibrant civil society community and Mas Malaysia should build bridges with them and seek out areas of co-operations. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. Better Essays. Technology is fast disrupting business models across various industries. - Democracy & Other Democratic Institutions According to Nabil N. El-Hage, Leslie S. Pierson the democratic institutions are needed to be strengthened further so that business such as Khazanah Mas's can thrive in an open, transparent and stable political environment. As of early 2021, the MAB has around 12,000 employees in 53 cities. 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