Global marketing outlook for Airasia beyond 2016 1 GLOBAL...

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Global marketing: outlook for Airasia beyond 2016 1 GLOBAL MARKETING: OUTLOOK FOR AIRASIA BEYOND 2016 (By: Name) Course Tutor Institution Date
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Global marketing: outlook for Airasia beyond 2016 2 Introduction AirAsia is a the fastest growing Malaysian airline operating in most parts of Asia. The airline faces competition from other players in the Asian air travel industry. As a result, for the airliner to be head of the pack, there is need for a macro-environmental analysis of the market and formulation of recommendations corresponding to the analysis. The macroenvironmental analysis entails of Political, Economic, Social-cultural and Technological (PEST) factors. All these factors are put into consideration when making an economic decision such as price adjustments. It is of great importance for a company to consider the impact of legislative variables, economic stability, interest rates, inflation levels, new technology and a development of a social culture. These, among others, entail the pest analysis. This paper presents a PEST analysis of the Asian airline industry with special attention on AirAsia, gives recommendations on the available opportunities in the industry, presents recommendations concerning the challenges to the airline and finally offers a conclusion that revisits the main points in the whole paper. Macro-Environmental Factors This section is an analysis of the factors in AirAsia’s field of operation and their overall effect on its activities. These factors are classified into five areas, that is political and legal factors, economic factors, social factors and technological factors. Each of the factors is individually analysed in this section. 1. Political Analysis Political Analysis mainly discusses about the aviation acts and regulation which needed by a company such as Air Asia to operate their business. Political factors influence the spending power of the consumers as well as regulation of business for growth of an airline, political
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Global marketing: outlook for Airasia beyond 2016 3 stability is essential in the region in which the airline operates. In this case, AirAsia operates mainly in the Asian countries. Disagreements between these countries harbour the operations of the airline in some instances. The flight industry is regulated by air rights and agreements. Some countries charge high landing fees and this makes operation difficult for the low-cost airline. Other countries also recommend the dressing of air hostesses to be more ‘Islamic’. Some legislative acts have also seen transformation of recruitment protocol from that based on merit to that based on racial composition for the purpose of equality rights. Terrorism is also a major threat currently as some of the countries in the region are experiencing terrorist attacks. Governments also tend to promote state owned airlines with the argument that they are of strategic importance. Government and Government linked companies as a result use Malaysian Airlines for business trips instead rather than Airasia.
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  • Fall '08
  • Julier,L
  • Low-cost carrier

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Christopher Reinemann
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