There are many factors that affect business operations. These aspects come from inside and out of the prospect. Internal agents can be monitored to ensure that they do not get out of hand. However, the outside immediate is inflexible. This essay discusses the marketing environment surrounding air travel services.
A selling atmosphere involves activities such as sponsorship of products and deliverables offered by an organization. Thus, market setting is the demographical, social and competition issues that impinge on the trade of commodities. Businesses must be adequately aware of this environment to ensure that they protect their organization against unprecedented outcomes. Some of the factors that play big roles in the structuring of this environment include customer taste and preferences, needs and financial status of clients (abdi et al., 2013).
Demographic, Cultural and Economic Environments
Changes that occurred in the demographic, economic and cultural environment affected the united airline business decision-making in a great way. Demographic changes are connected to the evolution of client’s needs and wants. It also involved increase in consumer base, an action that forced the organization to come up with new routes to facilitate efficiency transportation endeavor. This led to the introduction of a comprehensive network system that led to the improvement of customer satisfaction. In regards to changes in customer taste and preferences, united airline invested in new aircrafts that would cater for these diverse needs. The financial atmosphere is characterized by wages inequalities. Thus, prices of services cannot be generalized for all the customers (Ari Kim and Cho, Myeong-Hyeon, 2011). It led to buyer’s segmentation in terms of social classes. Different classes depicted diverse characteristic and behavior. Cultural behaviors affect decision undertakings and endeavors by the organization.
In case of cultural change, the organization has to adjust itself to meet the diverse needs of customer. In the recent past, customers adopted cultures such as consumerism that increased the demand for luxurious goods. Comfort is an enzyme to consumption. The company has integrated features in their crafts that enhance comfort (Blouet and Blouet, 2010). The use of social media has also become a culture/norm prompting the airline company to use email in sending information to consumers and communicate with them.
Segmentation is the grouping of consumers into different categories depending on their diverse characteristics. This has enabled the organization to establish comprehensive network, flyers programme and attractive frequencies. Different segments differ in taste, price, needs and communication mode. This means that diverse strategies need to be implemented to ensure that each consumer is served to satisfaction. For that reason, a bazaar subdivision is a cluster within the target souk. Members in the cluster have related distinctiveness, taste and needs. Targeting denotes the act of concentrating and studying the behaviors of a fragment. This means that the organization will apply resources maximally in promoting its business to the target market (Halpern, 2012). Thus, it aids a company in saving money and time hence an effective way of marketing services. Positioning on the other side is involved with the placement of a corporation in the bazaar. Merchandises are positioned in the financial system through various ways and activities. Competition in the souk defines the place an item for consumption holds. It may possibly be represented by the bazaar divide restricted/managed by a conglomerate.
United Airline Use Segmentation
The united airline applies psychographic segmentation to group clients into different categories. Thus, segmentation assists an organization in performing varied activities. First, the company identifies the social classes prevalent in the Kuwait market. These classes demand for assorted services. The next role of segmentation is to establish the standard of living of natives in a group. Interest and opinions also forms part and parcel of consumer behavioral attributes. The last exploitation of segmentation by airline firms involves separation of mind-set and behaviors of the specific market. The end result would be improved service delivery and pricing that is consistent with each individual group aspirations and expectations (Chao, Lirn and Shang, 2013). The above issues form the basic effects that the institute looked at when developing its goals. This made it to rise to the second place in the service commerce.
A SWOT examination is a system used to assess businesses to ascertain its feasibility or strength. Therefore, the evaluation focuses on the interior and outside atmospheres surrounding the institute. The internal atmosphere involves factors that are controllable by the firm. This insinuates that the firm has the necessary skills and capabilities to influence the direction of the entity by managing its internal factors. Contrary, exterior surroundings are way past the power of a commerce entity. This is because factors involved emanate from the social, political and economic aspects of the economy (Editorial Board, 2015). For example, government interference in the sale of good by imposing taxes may reduce the volume of purchases customer make in a year. The reason behind this is that transportation or services becomes so expensive.
The word SWOT stands for strength, weakness, opportunities and threats. Strength refers to Airline internal aptitude to face rivalry in the regional and global market. The united airline derives its strength from its efficiency in service delivery and operation. It was able to combine its businesses for various routes. The comprehensive network increases the organization competences in the industry hence optimizes on profit. The provision of flyer programme also places the company at the top of the industry. Weakness on the other side emanates from overhead costs such as employees’ salaries. A lot of money is used in paying employees’ salaries and wages an action that places united airline at a disadvantageous state. The third component is opportunity that arises from the company’s operation in the industry. An opportunity is a chance or a market gap that can be utilized by operators to launch destructive strategies to rule over the market. Thus, every individual firm focuses on the opportunities as they emerge in the economy to advance their competitive status. For United airlines, the opportunity prevalent in the souk is the increased client’s base for airline services in Kuwait. The nation is among of the budding souk for air transport services. In addition, the growing middle class population increased the aggregate demand for services such as luxuries products. These products include the airline services (Chamlee-Wright, 2013). Lastly, threats from political interference in Kuwait are deemed to lower the activities of the business. In places where political environment interferes with business operation, traders and investors fear investing their money, an action that reduces the economic activities.
SWOT Analysis to Your Business
In applying the SWOT analysis to the united airlines, the following issues will come out from the endeavor. The firm should work on optimization of the comprehensive network which forms part of its stronghold. However, the airline need not overlook the weaknesses because they may cost the organization its business. The weaknesses include overhead costs that increase the cost of operations (Hassan and Craft, 2011). Opportunities include the growing Kuwait market while the threats involve political and cultural changes.
In conclusion, identification and targeting of customers have a lot advantages to an entity. This is because money is utilized efficiently. Environmental factors determine the decisions undertaken by firms. This is brought out in the essay above.
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