MARKETING Essay Example | Topics and Well Written Essays - 1000 words

MARKETING - Essay Example Discussion Political: there are heavy regulations that have to be followed in order to contribute the operations. These regulations could be in relation to pensions and the change equal opportunities to employees regarding the age of cabin crew and pilots. Compliance to Political regulations would be needed in order to function. These regulations monitor the expansion of businesses operations and its impacts. Political factors also encompass the increased security due to the international security conditions. The terrorist attacks of the past have an impact over the way Airlines functions. British airways would need to have more security in order to comply with the political safety measures and to ensure customer satisfaction. Economical: there is a global economic crisis and most countries of the world are going through recession in the economy. This economic crisis can lead to reduction in sales. When expanding the business, this could be a consideration as during recession it is m ost feasible for companies to try and cut costs to keep up with the declining economy. Moreover, due to the condition of the economy, many people may be switching to cheaper modes of travel. When there is economic downfall, the currency rates are affected. Pound weaken especially against the euro, this decline in the exchange rates makes UK airlines vulnerable. There is a rise in the oil prices due to the middle ease unrest, these fluctuation in the price of oil and petrol affect the exchange rates and consequently the cost base of British Airways. Also, as fuel prices increase, the costs rise and this makes it hard to deliver competitive advantage. Moreover, there has been a considerable decline in the spending of average UK population. This makes the airlines vulnerable to competition. (Milmo, 2011) Social: According to the national statistics, the UK has an aging population, this is an advantage for British Airways as the older generation seems to indulge more in leisure activiti es and has more time to travel. The unemployment rate is increasing in the UK which means that there is more workers supply than the demand. This increase in the rate of unemployment gives the company bargaining power over the employees. Technological: with the passage of time and the advancement of information technology, the use of internet for buying and selling has been on a constant rise. Online presence is necessary for every business especially airlines and travel agencies. Recent studies reveal that there would be an increase in the use of price comparison sites by the consumers which means that the bargaining power of the consumer would increase as they would be comparing the prices of the airlines and competition would also increase. The internet usage and purchases have increased online bookings and ticket reservations. The trend of purchasing airline tickets over the internet has become widespread. With these trends it is imperative for British Airways to expand its virt ual presence and keep up tp date with the advancements in technology, whilst maintaining a physical presence for the consumers that do not use the internet. As majority of the consumers are now moving to buying tickets over the internet, due to this change, market research could be conducted through email questionnaires and online reviews. With concise and straightforward questionnaires, a sample from the target market can be analyzed. Surveys can also be conducted thro