PESTLE analysis of Air New Zealand has been conducted in this analysis. The macro environmental factors that have aided towards the growth and threats to the company were analyzed in this report. Rising fuel costs, limited fuel reserves, increase in labor costs, age demography, infrastructural issues and some technological factors were considered to impede growth. Stable political governance, stable economic growth, lower inflation, inclusive culture and standard legal mandates have enabled towards growth of the company. It was concluded in the report that the company should focus on other air route, form strategic alliance to sustain in the future. In the case of macroscopic analysis there is a tendency of being oversimplified. To understand the nuances there is also a need for micro analysis of the internal operations. There is too much of gathering in the macroscopic analysis that may not address all the internal weaknesses and the threats of the company. Assumptions should not be made on the external factors alone. Before developing an action plan the company should look into its internal environment.

The weakness of the company is that they do not offer differential services. They offer the same kind of services but competing airlines such as Etihad or Emirates are able to provide it for a lower cost. The company should focus on innovative service marketing in order to leverage their performance. They offer the same homogenized services like the other airlines. The company has an effective organizational structure and labor. However, there has been increase in the labor costs and this could affect the future profits of the company.

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