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multicultural and ageism
impact of social and cultural factors
social and cultural factors
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Sociocultural factors embody the various culture aspects in which a business functions. It is of great significance that a firm has the ability to appeal to the culture that they are working within as it reflects their customer knowledge, determining their performance (David & Fahey 2000, pg. 113). One central issue in regards to sociocultural factors playing an important role in a business’ marketing mix is firm’s ability to adapt marketing strategies in regards to demographics. The universal aging population is a clear indicator of marketing strategies for airlines companies to evolve so that it caters to the needs of the population as a whole. In addition, with Qantas operating as a global company and multiculturalism as a universal force, it is crucial to cultivate innovative marketing plans to accommodate the diverse preferences and needs of other cultures (Teo 1994). As cultures differ in their forms of attitudes and behaviours, consumers coming from these diverse cultures, backgrounds and countries are susceptible to dissimilar intensities of service anticipations (Donthu & Yoo 1998).
Thus, to satisfy sociocultural concerns, Qantas can revise and amend parts of their product services to provide to the broader spectrum, meeting the needs of consumers internationally in a growing globalised society. These adjustments are endorsed in their ‘Diversity Statement’ online where Qantas (2014) states that their inflight merchandises can be changed to “meet the needs of its customers” in a number of ways, such as requesting meals for special dietary requirements and foreign entertainment programs. However, Qantas needs to adjust its promotional policies in order to adhere to the aging population and maximise market share as present...
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... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
One of the many influences that affect Qantas is the presence of globalisation, which has heavily affected the airline both positively and negatively. Globalisation is a process which refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Globalisation is responsible for the removal of many trade barriers and the increased level of competition that Qantas has been exposed to. The increased levels of competition has increased consumer sovereignty and forced Qantas to implement strategies to gain a competitive advantage in order to redirect consumers towards their business. Qantas has implemented a cost leadership strategy as a response to globalisation and the influence of cost based competition. One way that Qantas achieved this was by using Globalisation itself to the business’ advantage. Globalisation ha...
The marketing process is an essential aspect of modern day business as it ensures an effective connection between the business and its target market. The marketing process embodies six key aspects which ultimately all combines to ensure business success. This is seen through Aviation Company Qantas as the process in its entirety has been incorporated into the business’s marketing plan. This has seen profound success as Qantas is Australia’s leading domestic and international carrier providing the most comprehensive coverage and holding a current 65% domestic market share and 90% of the corporate market.
Implementing factors provides an overall corporate strategy meaning, helping an organisation strive towards achieving company goals (Thomas, 2013). To develop new strategies, market research would have to be carried out both from primary and secondary sources about what consumers would favour in terms of product and service provision (Ebert, Griffin, 2011). Therefore, a market orientated culture is integrated in businesses to focus solely on customers opinions of their products and services to gain a competitive advantage( Slater and Narve, 1995).Market orientation has a direct correlation with improving performances of companies, due to a central role of customers, helping develop existing strategies (Slater and Narve, 1995). Furthermore, demographic and geographic variables could help businesses decide which area is a priority to co...
First of all the demographic environment, it is one of the most important environments that united airlines has its regards because each different types of people has their demands, such as the age range for each group of people for example: the Adults (from 21 to 40) need entertainment on the airlines to enjoy their time spent and for their satisfaction till they arrive their destinations. Also, the Old parents (from 45 to 60) need to be comfortable and relaxed till they reach their destinations. This situation means that the united airlines have to develop their marketing strategy to the next level to ensure all their demands are applied.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
Companies are interacting with people through the use of social media due to its low cost and the number of people they can send their message to, especially if it is an advertisement on a product they want to sell. Because of the rising tide of social media and the necessity it is for companies to use it as a major tool today, it can be catastrophic if misused. This is why companies need ringmasters to manage the social media activity. One company in particular that has suffered from a catastrophe on social media is Qantas Airlines. A major airline company that had their promising plans backfire because of a concept called, Hashtag Hijacking. Ringmasters and Hashtag Hijacking correlate with each other because hashtag hijacking can be avoided
Considering environmental issues have high social impact, raising societal awareness and posing great challenge to the airline industry. Having a globally known high quality brand, affects customer travel behaviour. Social trends affect purchases, in which customers accept economy cost air travel services at a higher level (Freed, 2014), and reduce travel with Qantas in premium air travel services. Qantas has a higher level of social preferences, by greater customer service, which essentially contributes to customer brand loyalty.
When describing the need and path that business organizations require to stay competitive and successful in their local and global markets, cultural diversity will always require attention. Business organizations will not only understand and respond to the needs of its customers, but it will also ensure its survival and productive workforce.
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
In conclusion, the idea of globalisation, the process where companies develop themselves internationally is one of the current issues of our generation. Globalisation has been caused because of many factors, such as reduced protection, the reduction of tariffs and quotas and new developments in information and transportation technology. Consequently these factors that cause the globalisation of Australian businesses also result in many costs and benefits. The key costs and benefits are free trade, the result of removing trade barriers and the environmental costs that are caused by pollution from factories. Overall, a positive outcome will arise if the globalisation of Australian business continues.
The environmental dimension, which refers to the natural environment leading to a cleaner environment, environment stewardship, environmental concern in business.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
Easy Jet has gone international to an extent. ”Push” factors within its existing market are primarily the saturation of the Europe market and its strong competition. The statistics show that people travelling by air has increased tremendously over a year (Holloway, 2000). Asia and North African appears to be attractive new markets for EasyJet to expand and exert its influence. EasyJet entered the European airline industry despite the stiff competition. The competitive factors and attractiveness of the European market can be examined further by use of Yip’s driver of internationalization. YIP’s framework suggests that the internationalization of organization is influenced by drivers of globalization which are: market, government, cost and competitive consideration.
Moreover, the InterContinental Hotels & Resorts is considered the first international hotel brand in the world, as it began operations in the year 1946 (About InterContinental Hotels Group Brands, 2015). Over time the hotel group has evolved to encompass quality hotel rooms not only in North America, but in Central and South America, Europe, the Middle East, Africa, Australia, and Asia-Pacific (IHG – InterContinental Hotels Group, 2015). In addition, they have acquired extended stay facilities and the Hualuxe Hotels & Resorts, which specifically “celebrates the essence of Chinese hospitality” (About InterContinental Hotels Group Brands, 2015). In my opinion, this shows that their target market has changed by expanding their scope of travel, which means they are traveling to farther and farther locations and require the familiar surroundings with equivalent product quality at the final destination. The InterContinental Hotels Group is in the fourth and final stage of the product life cycle, which is the decline stage (Editorial Board, 2014, p. 212). Indeed, the brands lengthy history indicates it has loyal customers, but its addition of innovations indicates the targeting of new customers for the organization, which are clear signs of a business in the decline stage of the product life cycle (Editorial Board, 2014, p.
One of the characteristics of service offered by AirAsia is intangibility. Services intangibility is inevitable and sometimes could be a challenge for every service provider. According to Pride & Ferrell (2011) intangibility of services can be defined as the characteristic that the service is not physical and cannot be perceived by the senses. For instance like AirAsia which provides flight services, it is impossible for the customers to touch the flight as it is a journey to specific destinations. They might be able to touch the plane, but in the context of services, the customers do not own the physical tools or equipment used to deliver the service but are only entitled to get the service which is the flight service.