Airline Industry Analysis

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The history of the airline industry went through a period described as challenging and soaring. The reason behind this description is the rapid increase in oil price which caused major financial losses and a cut in airline profits. Airlines which declared bankruptcy between 2004 and 2007 have all been a case of such losses. As of 2009, in the UK, airline analysts expected that airlines will have to face great challenges in the future. An example of this is British Airways which predicted a profit reduction of £250 million in 2008 (Robertson, 2008). Asian airlines are another example in which they were in financial danger as of 2008, the reason being high oil prices and decrease in the number of passengers. The airline faced negative effects…show more content…
Not all the products reach the last stage as some continue to grow while others grow or fall. An interesting critique pointed out by Bhasin is that fluctuations in sales will produce incorrect conclusions because slowing down of sales does not necessarily mean that the product has reached the Decline phase, and the decision to retire the product and divert resources would be wrong. Bhasin also explains that products, markets and companies differ when going through the stages of the Product Life Cycle. Bad marketing or lack of need of the product could lead for a product to go directly go to Decline from the Introduction stage. Bhasin also criticizes the Product Life Cycle discussing how it does not explain or show the length of each stage. Moreover, not every product spends the same length of time at each stage. Ultimately, this model is criticized by Bhasin expressing that it can be incompetent when dealing with brands and services. Brands and services are not products and brand can have a lifecycle for its own. Products of a certain brand will experience a totally different life cycle than the brand itself. An example given by Bhasin himself is Mercedes Benz which is a very strong brand. Apple Computer’s Lisa, Newton – which was a market failure, and iMac – which was a market success, are evidence that brands and products have a…show more content…
This analysis is important that is criticised although Lynch (2006) explains that the factors are almost uncontrollable. In addition, Sutton (1988) explains that analysis of the external environment is tackled to In order to achieve competitive advantage and enhance distant and close future Sutton (1988) explains that this should be tackled as the analysis of the external environment. McMillan and Tampoe, (2000) explain that the PESTLE framework is represented as a guide to the environment as a whole. Put differently by Fahey (1986), it means dealing with current changes, which is an important tool to predicting the
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