EXTERNAL ANALYSISPESTLE Analysis
Political, Govt. and Legal Forces
Airline industry is dependant on the government for infrastructure(airports) and for Aviation Turbine Fuel(ATF), the prices of which are regulated by governments andContinental Airlines is no exception.
Continental airlines operate in almost all the continents and hence it is very sensitive toexchange rates and other economic fluctuations in each of its markets.
Social, cultural, environmental and demographical forces
Rising social inequality in many countries has resulted in the rapid growth of terrorismand airlines have been one of the worst affected sectors as it was evident from the 9/11attacks in the USA which resulted in many airlines filing for bankruptcy. Airlines are alsoa constant target of environmental groups in their fight for global warming.
The rapid technological changes have resulted in the fleets becoming outdated quicklyand companies have to incur massive costs in order to upgrade their fleets periodically.The internet has reduced costs of ticket sales but also empowered the customer who canshop around for the best price.
OrganizationPhilosophy Self-Concept Concernfor PublicImageConcernfor Employees