The Pestel Framework - Hong Kong

The PESTEL Framework

Political factor

Hong Kong is a political stable country with various incentives for the foreign investment as an international city. (The Economist Intelligence Unit Limited, 2014).there will be attracting different investor to gain the business benefits. However, the airline industry is subject to the government policies and regulation. For example, the industry must be follow the normal standard and procedure by the government bodies in the climate change. Airline industry is the worldwide operation segment as it is easily affected by the different policy .therefore, it need to continuously evaluate the political environment for prepares the emergency planning.

Economic factor

For the past 21 years Hong Kong has been ranked as the ‘World’s Freest Economy’ by the Heritage Foundation. The index measures economies in 10 areas, including trade, business, and investment and property rights. Hong Kong scored particularly well on business, trade, financial and labour freedoms. Thus, Hong Kong continues to be the top-rate economy in the index. The GDP in Hong Kong has been growing in a steady rate while the unemployment rate remained at a rate of slightly above 3%.(World Economic Outlook Database,2015)

Socio-cultural factor

There has been a significant reduction in the school age population since the decreasing rate of the number of births, While the numbers of persons of working age and of retirement age have risen substantially.(Census and Statistics Dpartment,2014).And the requirement of the better lifestyle result in the high quality service in the industry. Cathay pacific strive to excel in everything they do, providing the best service to the guest so that can enhance their mission and vision.

Technology factor

As the broadband Internet connection is developing rapidly in every country now, the cost of the technology is decreased a business man can use the video conference through internet connection to launch cross-countries meeting without travel to there, so that it save cost and time. Cathay Pacific is dedicated to technological excellence for its products and services, It was one of the first airlines to provide in-flight email. And also offers online ticketing and check-in, a downloadable timetable, and the notify flight paging service, which delivers real-time flight information updates to customers via email or on their mobile phones. Especially, It was voted "World's Leading Use of In-flight Technology" in the World Travel Awards in2003.