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The Innovation Station
PESTLE Analysis
 Political• Existing space policies mainly encourage expensive agency programmes e.g. the ISS and Space Shuttle. • Worldwide air traffic management policy to engage sub-orbital launches are not established yet. • Government regulations hinder permitting licenses of operation and spaceflights. • Governments rarely invest into companies wanting to enter this market sector. • Little government understanding of entrepreneurial issues associated with establishing a location (e.g. port in Mexico). |  Economic• Establishing a forecast market demand and ticket pricing model, is difficult to gage. • Predicting economic profits from a new industry could be problematic. • Supply chains need to be established to fit with those in the automotive and aerospace industries as well Virgin Eco-system. • Private companies such as Virgin Galactic, wanting to develop space tourism businesses, don’t benefit from tax breaks and incentives. • Spaceport infrastructure is demanding/ large construction investment. |  Social• Public anxiety over safety (following recent shuttle disasters). • Environmental concerns around proposed launch sites and technologies used. • Limited understanding of the industry (public awareness of existent product). • Target group is limited to upper social class (wealthy people). • Target group is limited to people with good health. • Virgin Galactic needs to inform future consumers about Space tourism industry, i.e. educating school children by advertising space flights.(Next Gen) |
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 Technological• Technology not mass consumable yet and is reliant on funding which is limited by few financial investors. • Lack of proven launch systems so far. • Lack of Know-How in this new industry e.g suppliers such as manufacturers of rocket engines. • Commercial space companies have to develop technology on their own rather than benefiting from Know How already existent in NASA/ESA. • Environmental problems limit technical plans such as pressures to build eco-friendly space craft. |  Legal• Legal Framework - There is solely a legal regime which originated during the cold war period) • Business and Consumer law: Legal issues include the need for co-ordination of high frequency space launches, • Insurance for spacecraft owners, operators, passengers, space flight. • Health and Safety law: How risky is the space flight? Are health and safety regulations respected by Virgin Galactic) • International space regulations |  Environmental• Expensive, fuel-intensive (a space shuttle launch blasts about 113 tons of it at take-off which is equivalent of what 130 American homes’ electricity need for an entire year) • Pollution of upper atmosphere • Cost efficient? Can only accommodate six passengers at a time • VG brand image: “More of a well-rehearsed public relations machine than a green technology company” • Producing one part of algae bio fuel requires 1000 parts of water |
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