ABSTRACT
This chapter discusses the external environment. The macro external environment consists of such things as the economy, unemployment levels, inflation, and the demographics of the population, governmental legislation and regulations. Furthermore, just as there is a micro and macro analysis in economics, a company is affected by both macro and micro-environmental forces. Effective strategies make it possible for a company to compete successfully in the aviation environment, but good strategies do not come without hard work and detailed planning from the CEO. In 1980, Michael Porter published a framework for analyzing the competitive pressures in all industries. Before moving forward in this discussion of analyzing the competitive environment, it is important to discuss the pressures that affect competition. The power of the supplier market is closely related to the significance of the component part to the final product. The buyer market is comprised of all the firms or individuals that purchase the product or service of the industry members.
