Boeing PESTEL Analysis Report

This report presents a PESTEL analysis of Boeing, a multinational corporation in the aerospace industry. It begins with a company overview, highlighting Boeing's history and its diverse product portfolio, including aircraft, satellites, and missile systems. The core of the report delves into a PESTEL framework, examining the political, economic, social, technological, environmental, and legal factors impacting Boeing's operations, particularly focusing on the Indian market. The political analysis considers political stability, government regulations, and defense spending. The economic analysis assesses factors like GDP growth, inflation, and consumer spending. Social factors such as demographics, cultural attitudes, and consumer preferences are also discussed. The technological analysis explores advancements in aviation technology and their impact on Boeing's competitiveness. Environmental factors, including environmental regulations and sustainability concerns, are addressed. Finally, the legal analysis examines relevant laws and regulations affecting Boeing's operations in India. The report concludes by summarizing the key findings and emphasizing the importance of considering these factors for successful market entry and operation.

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PESTEL Analysis of Boeing

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Company overview (Introduction)
Boeing Company is the American MNC that manufactures designs as well as sells rotorcraft,
aeroplanes, satellites, aeroplanes, missiles and equipment's of the telecommunications all
across the globe. Furthermore, the firm also provides product and leasing support services.
They are also the provider of the commercial as well as the government services. The
company came into existence in the year 1916 on 15th July in the U.S. and the founder of the
firm is William Boeing (Pao, 2013).
PESTEL analysis will be conducted for Boeing and this factor consists of the political,
economic, social, technological, environmental and legal factors and these are also the factors
that cannot be controlled by a firm completely but they can take several steps in terms of
preparing themselves for the upcoming threats.
Body
PESTEL analysis
The main aim of the PESTEL analysis
The main aim of the PESTEL analysis will be providing a huge amount of details about the
company in terms of they are likely to face in the countries they will be operating (Macro
environment forces). For instance, it can be predicted that an industry can be quite profitable
with the strong growth trajectory but it will not be good at all for the firm if it is operating in
an unstable political environment.

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Political factors that will be affecting the company
The political factors are said to be one of the most important element in terms of determining
the factors by which the long-term profitability of the Boeing will be affected. There are
some of the regulatory decisions and policies that are made by the government of every
countries and it can have a direct impact on Boeing's operation. There is a sudden boom in
the aviation industry all across the globe from the last decade. It is quite evident that some of
the countries such as India considered to be one of the largest democracies in the entire globe
and so it has the most active influence of the politics in the daily operation of the main
businesses as well as the aviation industry is not at all an exception. However, Boeing must
remember that the recent political environment of India is quite unstable because of the
continuous tension the country is having with Pakistan along with some other international
events. The unstable political environment is quite bad as it tends to cause uncertainty in the
consumers' minds. The following are certain elements that the company must take into
account in terms of the political factors: Political stability and the importance of
defence/aerospace related services and products in India, level of corruption, taxation, wage
legislation and etcetera (Lawrence & Thornton, 2017).
Figure 1: Overview of Boeing
(Source: Denning, 2013)

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Economic factors that will be affecting the company
It is recommended that this firm must use the economic factors of a country for instance
inflation, growth rate, consumer spending and etcetera. Furthermore, on a brighter note, it has
been observed that the income of the middle-class people in the developing countries like
India rose along with the excellent economic fundamentals. Some of the well-renowned
sources have also stated that the demand for Aircraft in India is increasing at an alarming rate
and the country is also on its way of becoming one of the largest domestic aviation markets in
the entire world. However, this industry is quite competitive with the new players adding to
the competition on an everyday basis. The following are some of the most vital information
for Boeing before stretching their branches in India: The current unemployment rate in the
country is 6.1%, the GDP of the country at present grew 1.4% when contrasted with the
previous year, the Central Government of India mainly levies some taxes such as income tax,
customs duty, central excise duty and service tax.
On the other hand, the firm must take into account of the following things in terms of the
economic factors: The intervention of the government in the free markets, the infrastructure
quality in the defence/aerospace services and products industry, education level of the
country, inflation rates, unemployment rates and etcetera.
Social factors that will be affecting the company
Like other businesses the airline's sector also creates social values as the customer base in
recent times have changed completely. U.S. is such a socially vibrant country that it tends to
offer a lot of variety in virtually every aspect of social life. With the huge amount of
competition all around Boeing must consider taking a conscious decision for their profit. The
low-cost models in India remain one of the best options available for Boeing. The population
of each of the countries in the world keep on changing regularly. The attitudes along with the

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shared beliefs with regards to the population will play one of the most vital roles with regards
to how the Boeing Company marketers will understand the consumers as well as how they
will be designing the marketing message for the defence/aerospace products customers. The
following are some of the social factors that must be taken into account by the firm: Skill
level and demographics of India, educational standard in India, culture, leisure interests, class
structure and ethereal.
Technological factors that will be affecting the company
There have been a huge amount of advancements in technology noticed in a lot of countries
and it is also noticed in a developing countries across the globe. The technological
advancements in various countries have handed the consumers with an immense amount of
power by giving them convenience, transparency and benefits regarding price similarly it has
also benefitted the airline's sector by lowering the costs and enhancing their sales to a great
extent. Boeing may conduct advertising campaign on social media for attracting a lot of
clients. The enhanced technological advancements also have the capability of making Boeing
gain some profits by offering improved and safety services. The company uses the carbon
composites in the manufacture and that makes their aircraft much more fuel-efficient and it is
quite evident that high level of fuel efficiency will make the aircraft fly long distances
without the need for refuelling. It took place only because of the new technology and this is
quite likely to get a lot of orders for the company from India.
The following are some of the technological analysis that the firm must perform: The present
technological developments that took place by the potential competitors of Boeing,
technological diffusion rate, the effect of technology on the products that will be offered by
the company and etcetera (Nolan, 2012).

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Environmental factors that will be affecting the company
The company must keep themselves informed that India is facing some of the major
environmental issues in recent times and the state that is highly affected by this is Delhi. The
major environmental threats in India are Poor waste management, poor quality of air, water
scarcity, water pollution and biodiversity loss. Furthermore, it is needless to say that the
enhanced amount of global warming that is taking place because the number of aeroplanes
flying has increased over the years. However, there are no such boundations in terms of the
aircraft emissions still the company must try to prepare the aircraft by which the environment
gets less polluted. It can also be a part of their corporate responsibility scheme in India.
Boeing has already coined its name in terms of being one of the best firms in the year 2009
for the project of Carbon Disclosure. India has different environmental standards like other
countries which can directly affect the profitability of the company. The country follows
some of the strict environmental laws because of the massive environmental problems they
are facing at present such as The Environmental Protection Act in the year 1986 hands over
the authority to the Central Government of India for taking necessary actions for enhancing
and protecting their environment and if a firm fails to do so then they will be severely
penalized under the country’s Law.
The following are some of the elements that Boeing must consider in terms of the
environmental factors in the country of their origin: Weather of India, recycling, change in
the climate, Environmental Laws, waste management in the Industrial Goods sector and
etcetera.
Legal factors that will be affecting the company
There are some of the legal factors by which the company will be affected in India. The legal
framework of India is considered to be robust enough for protecting the intellectual property

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rights of the firm. However, Boeing must beware to evaluate a lot of things before entering
into the market. On the other hand, it has been observed that the company’s complaint against
the Airbus is highly supported by WTO with regards to the illegal subsidies. This particular
ruling might be quite helpful for helping the company for placing their mark in the
commercial aircraft. Some of the legal factors that the firm must consider for entering into a
country are as follows: Discrimination laws, data protection laws, employment laws and
etcetera (Denning, 2013).
Conclusion
The entire article highlighted the PESTLE analysis of Boeing. The company’s operation will
be affected to some extent because of these factors. However, they are recommended to take
some of things into consideration before entering into a marketplace.

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References
Denning, S. (2013). What went wrong at Boeing. Strategy & Leadership, 41(3), 36-41.
Lawrence, P. K., & Thornton, D. W. (2017). Deep stall: the turbulent story of Boeing
commercial airplanes. Routledge.
Nolan, R. L. (2012). Ubiquitous IT: The case of the Boeing 787 and implications for strategic
IT research. The Journal of Strategic Information Systems, 21(2), 91-102.
Pao, Y. H. (2013). Clear Air Turbulence and Its Detection: Proceedings of a Symposium on
Clear Air Turbulence and Its Detection, Organized and Sponsored by the Flight
Sciences Laboratories, Boeing Scientific Research Laboratories, Office of the Vice
President—Research and Development. The Boeing Company, Seattle, Washington,
August 14–16, 1968. Springer.