The Pest Analysis Of The Ski Industry Management (Essay Sample)

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The PEST Analysis of the Ski Industry
Undeniably, PEST analysis is an imperative evaluation tool that is used to scrutinize the political, economic, social, and technological forces that influence the exterior environment of an enterprise. The forces often have repercussions on the operations of the activities as well as the performance of the organization (Grant 65). In line with this argument, the paper explores the PEST model to identify the critical macro environment level factors that influence the Ski industry regarding generating prospects and threats to the industry (Gandellini et al. 50). More importantly, Magic Mountains in Vermont and Thredbo in Australia pride themselves as the leading destination to the nations’ longest ski runs, preeminent mountain bike and hiking trails (De Gex 28). Therefore, PEST analysis of the Ski industry is of significant importance in identifying the external forces affecting the industry.
The Political-Legal forces affecting the industry
The political stakeholders, including judges and political leaders, concur that the assumption of risk protection enjoyed by some ski resorts in the US puts excessive encumbrance on the skiers. In principle, the assumption of risk protection deprives the entire liability of the persons who get injured in the ski resorts (Parnell 62). Specifically, the Magic Mountain in Vermont enjoys the legal assumption of risk. Nonetheless, within the last five years, the ski-resort has experienced a few law changes that have forced them to face liability based on the assertions of dangerous terrains and personal injury as well failure to warn. Indeed, such law changes have weakened the inherent risks that are often assumed by the skiers. On the other hand, several states have come up with Sky Safety Acts, which necessitate the skiers to assume the inherent perils that may encompass steep terrain, crashes with other skiers, and snow conditions (De Gex 38). In other words, such laws require the ski area operators to maintain specific requirements to lessen accident risks, including putting up signage at trailheads as well as cautions of bad conditions. Further, some law changes in the state banned the use of ski blades and instead, shifted liability to ski resorts if a skier is lost and rescue help is required. In regards to Australia, numerous accounts depict the failure of the skiers to take legal actions against Thredbo for negligence because Australian ski laws are often not available on the web. For instance, the High Court of Australia’s refusal of special leave for the injured skier in October 2015 continues to elicit significant queries concerning whether the ski resorts were found guilty of breaching their responsibility of care and could be legally responsible to the skiers.
Over the years, both the resorts in the US and Australia, have often been forced to establish and preserve ski resorts that are environmentally viable by state environmental organizations (Haberberg and Rieple 281). In this regard, the National Ski Areas Association often works in partnership with the United States Environmental Protection Agency (EPA) to the ski resorts that are environmentally friendly. As such, sustainable businesses are encouraged. On the flip side, in Australia, the ski resorts that are located in the national parks such as Thredbo, are required to register in the Environmental Management System (EMS). Such systems have greatly enhanced the ecological sustainability.
Economic Forces
Over the years, skiing has transformed to be a profitable business in the United States and Australia. In reality, the sleepy mountain villages in Vermont and Thredbo have been turned into a massive tourism magnet which increased the prices of the property in the areas. Principally, the ski resorts continue to get many guests annually, which in turn increases the revenues (Parnell 68). However, the alpine lobbies and environmentalists continue to marshal against the overdevelopment of the Alps. In line with this argument, governments with business leaders in both the United States and Australia have been averse in lending on the ski development ventures. Undeniably, the economic experts concur that the ceiling has been accomplished and the Alps must be protected (Gines 313). Besides, the ski industry has to contend with the threat of global warming which leads to the disappearance of some glaciers in the coming years. The ski industry is erecting even advanced peaks to protect the snow assurances as well as enhances the season of skiing to prevent such environmental disasters. Moreover, the industry is resorting to the utilization of snow cannons (Richins and Hull 332). In reality, the changes in climate have significant repercussions on the ski industry. In fact, the unpredictability in the patterns of weather that have direct impairment the natural competitive edges, including torrential waterfalls and heavy snow that are the tenets making the Alps attractive. In this way, the ski resorts often come with numerous steps that strengthen their business models. For instance, Magic Mountain and Thredbo are making use of the artificial snow as well as lessening their operational footprints.
In reality, skiing coupled with staying in a resort entails luxury. Based on this argument, in an event where the level of employment shrinks and the inflation levels augment, the likelihood of individuals spending on non-necessities reduces. When individuals have more disposable incomes, their likelihood to spend on the leisure and vacation activities increases (Richins and Hull 332). Besides, the individuals traveling from other parts of the world to the Magic Mountain and Thredbo must also mind the effects of the alterations of the currency value. For instance, when the dollar cheapens, more foreign investment is augmented as investors venture in the resorts, increasing the revenue to the resorts.
Socio-Cultural Factors
The socio-cultural variables that influence the sky resort industry are numerous. In other words, the cultural norms and the values that clients hold are significant in comprehending the dynamics and the inclinations of the society (Parnell 89). The Magic Mountain and Thredbo resorts in Vermont and Australia can leverage the dissimilarities among the segments of the market in regards to the prospective clients. The major factor that influences skiing is the demographics many instances, the young and affluent people make up the larger proportion of the skiers. Besides, the physical toll coupled with cold weather is often a major hindrance to the older persons from frequently visiting the ski resorts, and as such, the elderly prefer to go for vacation in warmer climates (Lacher 6). Further, the socio-economic exclusivity that characterizes skiing at times is a bottleneck that can prevent the ski resorts, such as magic Mountain and Thredbo, from accruing more revenue. Along the same line, seasonality characterizes skiing, and as such, most of the personnel working in the ski - resorts are on a temporary basis.