Macro Environment: PEST Analysis
The development of a business is highly influenced by political situation, especially in international market environment where a business that originate in a country may face difficulty in expanding into another country due to political issue in the target country.
However, in the UK, where EasyJet originated, the country’s government has performed the reduction in the rules and regulations regarding airline operations. In addition, the existence of new up business like EasyJet also backed by political willingness of UK government that aims at fostering stability and providing a positive environment for business (‘United Kingdom’, 2004).
In the UK, EasyJet take benefits of the economy of the United Kingdom, which is regarded as one of the strongest and most stable economies in the world as shown by excellent GDP growth within the past 5 years (‘United Kingdom’, 2004).
The existence and the fast development of EasyJet in UK is influenced by the UK positive attitudes towards business investment in which it is much easier to establish business in United Kingdom than in other European countries (‘United Kingdom’, 2004). In addition, the country composes of multi ethnics and multi religion citizen, implying that there is many opportunities for airline to links airports in the UK to any locations, which have relationship with the ethics or religions. Read R oyal Dutch Shell PESTLE analysis
As one of the most advanced countries in the world, there are no significant issues regarding technology that will hamper businesses. Intellectual properties are highly acknowledged and technological resources are abundant (‘United Kingdom’, 2004). Regarding the airline business, UK airports were named as ones of the most advanced airports in the world and one of the highly secured ones.
In addition, since air travel business, especially no frills services like EasyJet in the UK, R&D in air travelling industry still focus on fuel management and deployment of new aircrafts since they consider new airplanes to have fuel efficient than old planes are.
