Microeconomic
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 customers choose the company not only for the purpose of traveling but also for cheaper price. AirAsia airline is well known as a low cost leader in Asia. However, Airsia is currently more focusing on short haul flights and less operating for long haul flights, as the company is not yet ready because long haul flight would be costly and less effective business model for now when the economy is still not stable (). Thus, almost all the customers of AirAsia are those who are looking for short flights in the region. Todays, Internet is very familiar with everyone and it initially becomes a common place for searching and buying products online. This has greatly increased the power of customers, since they have widely gain the use of internet to evaluate products and compare prices (Chaffey et al, 2009). Understands that AirAsia has mainly operate its business online and improve all the functions of website and a friendly interface which attracts many internet users to book their flights online.
2. Competitors
The main competitors of AirAsia are low cost airlines such as Jetstar, Tiger, Virgin and other regional airlines such as Vietnam airline, Malaysia airline, Indonesia airlines and Singapore airline. Although, the competitions
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 customers choose the company not only for the purpose of traveling but also for cheaper price. AirAsia airline is well known as a low cost leader in Asia. However, Airsia is currently more focusing on short haul flights and less operating for long haul flights, as the company is not yet ready because long haul flight would be costly and less effective business model for now when the economy is still not stable (). Thus, almost all the customers of AirAsia are those who are looking for short flights in the region. Todays, Internet is very familiar with everyone and it initially becomes a common place for searching and buying products online. This has greatly increased the power of customers, since they have widely gain the use of internet to evaluate products and compare prices (Chaffey et al, 2009). Understands that AirAsia has mainly operate its business online and improve all the functions of website and a friendly interface which attracts many internet users to book their flights online.
2. Competitors
The main competitors of AirAsia are low cost airlines such as Jetstar, Tiger, Virgin and other regional airlines such as Vietnam airline, Malaysia airline, Indonesia airlines and Singapore airline. Although, the competitions