Roll Royce External Analysis

This report will analyze and discuss the most important elements of the marketing environment for Jet Engine Industry, that is to say the main 3 levels of the marketing environment: the micro-environment through the Degree of Rivalry, Treat of new entry, Treat of substitutes, Bargaining of customers power, and Bargaining of supplier power, while, the macro-environment through Political, Economic, Social, and Technology forces. Finally, Opportunity and Threat that use to measure the risk for company to enter jet engines market. The analysis for the micro-environment is based on Porter’s 5 forces model and the one on the macro-environment is based on PEST analysis. Porter’s 5 forces is a technique to analyzing the industry and competitors. It is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. While, PEST analyse is beneficial strategic tool for organisation to understand market situation such as market growth and decline. Moreover, it is also useful for analyzing business position, potential, and direction for operation (Kolter, 1998). However, Opportunity and Threat analyse are based on SWOT analyse model. The report will also give an interpretation for each of these aspects, a conclusion with a rating of the attractiveness of the Jet Engine Industry in worldwide current marketing environment.

Political Factor
European Aviation Safety Agency (EASA) is one of others aviation authorities in the worldwide who set the rules and regulations for airlines industry and jet engine providers to follow. EASA’s mission is to the highest common standards of safety and environmental protection in civil aviation in EU and worldwide. Therefore, for the jet engine industry, EASA is concerned in airworthiness and environmental concerned of aircraft and related products (EASA, 2011). As in 2010, EASA dropped emergency mandates to inspect Trent 900s engines after every 20 flights, moved to require