Microeconomic

1745 WordsAug 21, 20137 Pages
I. MICROECONOMIC Micro-environment is preferred as ‘the operating system’ which includes the forces that has significant impacts on and can affect the organization’s ability to operate and serve its customer (Chaffey et al, 2009). This is influenced by the need of customers and how services are provided to them through the competitors, marketing intermediaries, and suppliers within the marketplace (Chaffey et al, 2009). 1. Customer Airasia provides to its customers the basic flight carrier service and carry the customer ‘s purpose of traveling between different destinations, but at a lowest fare among other airlines.(AirAsia Annual Report, 2010) The customers of Airasia are mostly from low and middle class people in society. The…show more content…
1. Demographic force Job catalogue and income aspects are the key focuses of Airasia for targeting the segmentation(Kotler et al, 2010). Most the customers of Airasia are students and low or middle class income people. Students and low incomes people are likely to concern more about fare price, while middle income people want a balance between price and quality. Eventually, Asia is becoming the potential market of the world and this creates more opportunities for traveling and carrier services especially in Asia Pacific region. 2. Geographic force Choosing and activating flight destinations of an airline is critically important, as it will affect the productive of market scale and business expanding trend (Kotler et al, 2010). For Airasia, the current cities and countries that it is mostly operating are the big cities in Asia and no local flight in one destination country. This tactic can achieve the faster expanding market goal (AirAsia Annual Report, 2010). 3. Culture force The customers’ consumption propensities are differential as national differences (Jones & Miskell, 2007) which mean of differences in culture. However, Asia has tried to build up a mixture of cultures and to give different experiences to its customers. In general, Asia cultures prefers to spend less money and save more, thus spending too expensive flight ticket for traveling is still not an absolute choice for all the Asia customers and because
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