Le macro et le micro environnement (document en anglais).

So, i'm going to talk about Aer Arann macro and micro environment.

First of all, about the macro-environnement, we studied the PESTEL analysis.

Political factors : there was an introduction by the government of a Dublin to Belfast route in order to help opening the entire island for business and trade.

Also, we analysed economic factors : because of the current recession, there are trends for customers to be more careful when spending money in transport.

About social environment, Aer Arann is associated with charities such as « our lady's hospital for sick children » in Dublin to promote the company's image and brand awareness.

Technological factors are also important such as Aer Arann's decision to purchase new technological aircraft.

We can also talk about legal and environmental factors. Aer Arann has code-share agreement with companies and uses eco-friendly aircraft such as the new ATR 72-500 which provides lower emissions of CO2 due to reduced fuel burn and sets new standards in the industry for quietness.

Secondly, we studied the micro environment thanks to the porter five forces analysis.

In the middle, there is the rivalry among existing firms. We can see 2 dimensions : one is the competing airlines like aer lingus or ryanair and the other one is domestic transport like bus and train.

At the top, we can see the threat of new entrants which is weak because a lot of barriers like capital requierement, brand loyalty and scale of the market which stop new entrants to get into this market.

At the botton, this is the threat of substitute products or services which is medium for example there are new technologies called « Net- conference » such as Skype may reduce the number of business passengers who fly with Aer Arann for meetings.

The right side is the bargaining power of buyers which is also medium because in long term,with

the National Development Plan, buyers could increase thanks to enhanced travel options.

On the left, it's the bargaining power of suppliers which is weak because for example there is a competitive price for airlines.

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