1.0 Introduction
A marketing audit is vital for analyzing the market conditions to determine existing problems and their solutions as well as opportunities for improvement. Baines, Fill & Page (2011) note that consider the health of three marketing aspects, namely the external opportunities and threats, the changes occurring in the marketing environment, and the quality of the organisation’s products, marketing procedures, resources and capacities. Additionally, it through an audit that an effective marketing plan can be devised to attain set marketing objectives such as increasing sales, creating brand awareness or increasing the market share. This report undertakes a marketing audit of the Singapore Airlines (SIA) to determine its
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3.0 Macro Analysis
3.1 PESTEL Analysis
This section analyses the external environmental factors that influence SIA’s capacity to attain its marketing goals and the overall organisational goals. The PESTEL tool is used here and it analyse the political, economic, social, technological, environmental and legal factors that may influence the SIA.
3.1.1 Political factors
This section will focus on Singapore’s political atmosphere, legislation and regulations as well as the existing open skies agreement as illustrated in Table 1.
3.1.2 Economic factors
Anderton & Kenny (2010) remark that a country’s economy influences business performance of organisations due to factors such as inflation, strength of currency and government spending. Singapore’s economy staggered in 2016 due to a weak global trade given that is highly dependent on global trade (Global Edge, 2017). As shown in Figure 1, Singapore’s economic growth slowed down drastically in 2016 and this is attributed to poor performance in most critical sectors such as oil and gas – most of which is exported – real estate and the manufacturing sectors (MTI, 2016).
The 2016 economic slump in an otherwise stable and expanding economy has affected the SIA export freight market as manufacturing companies – the worst affected by the slow down – exports less products (CNBC, 2016). Singapore’s inflation rate had risen by 0.2% by December of 2016 increasing the prices of various commodities and services
Centre Parcs are one of the UKs leading family, self-catering holiday destinations. This report aims to analyse the company using one of the key tools available to guide strategic decision making – A PESTLE Analysis. A good way for companies to establish where they are leading or failing in the competitive market is to perform a PESTLE Analysis’ on themselves. It allows companies to asses a whole list of different factor’s that
Delta Airlines is one of the leading airline industries in the market based on on-time performance, revenue per available seat, customer satisfaction, and it is well positioned in taking advantage of the new positive economic outlook for the airline industry. It is a domestic Airline carrier that provides passengers and cargo services throughout the US and other international destinations. Some of its hubs are in Atlanta, Detroit, Minneapolis, Amsterdam, JFK and Tokyo-Narita as well as in partnering with the existing regional airlines. Currently, the assets of Delta Airline are valued $54,252 million and the composition can be divided into three main groups including PPE (Property, Plant, and Equipment), Current Assets and other Assets (Luo, 2014).
Referring to the SWOT analysis, we assume the most uncontrollable issue imposed on C.P. is the circumstance of fierce competition existing in the current airline industry. Consequently, as alternative submissions, the company should remain constantly advancing new strategies, namely acquisition and introducing of a budget confederate.
| Weakness * The number of cancelling flights is a little high * The customer service is bad because in some occasion the customer can’t found the delta representative in the airport. * Lack of online presence * In some aircrafts the seats are uncomfortable and narrow
To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.
There were two major happenings that temporarily effected Singapore’s economy between 2001 and 2003—the worldwide electronics slump and the outbreak of Severe Acute Respiratory Syndrome (SARS). Both times, growth bounced back, by world demand for electronics, pharmaceuticals, other manufactured goods, and financial services. The return was mostly contributed to by the economies of its major trading partners—the United States, the European Union, Japan, and China, as well as expanding emerging markets such as India (Bureau of East Asian and Pacific Affairs, 2010). The next
US Airways completed a merger in December 2013 . This merger provided much needed cash infusion into American Airlines, enabling it to emergency from
Virgin Atlantic Airways is a British company that specializes in Air transport. The company was introduced in 1984. Marketing concepts identifies and defines the target markets. A company can identify and define a target market using the techniques like market segmentation. The marketing team should be able to evaluate the market prices properly to fulfill customer’s satisfaction. Customer orientation is an important feature in the marketing concept. All the activities in the marketing department should focus to identify the customer’s needs and wants and to satisfy them. The business company should be able to identify the customer’s wants and needs based on the customer’s point of view. Customer’s satisfaction is the main agenda of marketing concepts and this is possible through research and proper evaluation. The company will need to use some strategies in order to expand its business. Marketing analysis is critical in determining that the strengths and weakens of the company. Using SWOT analysis and PESTEL analysis will improve the
Singapore has a highly developed market which has historically revolved around extensive exports trade, in other words an export driven economy hugely dependant on export of goods to other countries.
Southwest Airlines has been a strong growing company over the last 4 decades. Using its low-cost, no-frill, customer friendly, point-to-point operational strategy, Southwest has been able to sustain considerable growth over the years and reported straight profits since its inception. Southwest Airlines now has a market capitalization of $9.1 billion and is positioned as one of the strongest airlines in the struggling airlines industry. Over the last decade, many airlines have reported record losses in the US while many have filed for bankruptcy. However, Southwest has been able to remain profitable and continued to grow. However, with the airline reaching its maturity, it remains to see whether this growth can be sustained for the upcoming years. This external and internal analysis is aimed to guide the strategic management of company in understanding the environment its business operates in, and how it can respond to that environment by realizing its internal resources.
With foreign manufacturing industry entering Singapore market the manufacturing sector and its share in GDP grew from 16.6% in 1965 to nearly 30 % in 1980 and in 1993 manufacturing contributed to about 28 % of the total GDP and accounted for nearly 28% of employment. Singapore’s GDP raise to 13 times between 1960 and 1999. The nation has shown greatly decrease of figure of poverty. (United Nations 2000)
SAA Technical Maintenance arm of the business is the biggest and one of its kind in the continent
Singapore has a capitalised mixed economy. Having strong international trade links, Singapore possesses one of the most open economies for international trade and investment. Singapore offers foreign investors a pro-business environment, excellent infrastructure, highly-skilled and cosmopolitan labour force, and a robust legal/judicial system. These competitive factors have set Singapore apart from other locations, winning several accolades including: §
The Singapore economy had proved its resilience during the worst post-war recession and experience exceptionally high economic growth during the 42 years since its independence. For the period 1966-1973, the economy expanded consistently at a double-digit growth rate in real terms (Kum Poh, 1982, p.1). Gross Domestic Product (GDP) at constant prices continues to rise at an annual rate of 8 percent till 2005. With population growth at 2.1 percent, per capita GDP increased by 5.8 percent on average each year (Gesquiere, 2007, p. 12).
The global economic environment has become more interlinked in the 21st century than ever before because more business enterprises have realized the importance of having trade relations within and outside their countries. Several prevailing factors that have a direct impact on the global economy influence greatly how the world business environment is likely to be at any given time (Harrison, 2010). This paper will examine the influence of factors on world economy. It will also examine how these factors shape global economic environment.