Macro Marketing Environment and the Sa Airline Industry
TREND DESCRIPTION IMPACT OF TREND IMPLICATIONS OF TREND
POLITICAL Refers to the stability of the economic environment, the attitudes and movements of political parties. This is entwined in government influence on tax policies, trade agreements, legislative Laws, international trade regulations, monopolies and consumer protection. Generally Political forces are influences that present restrictions or opportunities that are not mandatory. There is a positive outlook on the Airline Industry as long as the political environment is stable. Due to positive policies and passing of laws that support economic growth such as Liberalisation of sky regulatory frameworks as well as tax policies and consumer policies assures an inspiring sign in the industry. Increased competition due to various market offers by different players in the industry. This requires Low cost airlines like Mango to be more innovative in order to retain as well as gain new clients for their services. A times when policies and aviation regulation become strict it entails airlines such as Mango
ECONOMIC Refer to the wider economy and include economic growth rates, levels of employment and unemployment, cost of raw materials such as energy, fuels and inputs for production, interest rates, monetary policies, exchange rates and inflation rates. Economic growth is a guaranty of more and more travels within the country and as well as international travels by both locals and foreigners. Exchange rates are in favour of the rand and low inflation meaning more disposable income results in income growth and high volumes of business for the airline industry. But, of late due to the economic downturn since 2008 this has had a negative impact on the industry. Low cost airlines such as Mango have to come up with effective business strategies that ensure cost effectiveness in operation cost as well increase in price for the services they offer in order to maintain their customer relations as well as gain new ones.
POLITICAL Refers to the stability of the economic environment, the attitudes and movements of political parties. This is entwined in government influence on tax policies, trade agreements, legislative Laws, international trade regulations, monopolies and consumer protection. Generally Political forces are influences that present restrictions or opportunities that are not mandatory. There is a positive outlook on the Airline Industry as long as the political environment is stable. Due to positive policies and passing of laws that support economic growth such as Liberalisation of sky regulatory frameworks as well as tax policies and consumer policies assures an inspiring sign in the industry. Increased competition due to various market offers by different players in the industry. This requires Low cost airlines like Mango to be more innovative in order to retain as well as gain new clients for their services. A times when policies and aviation regulation become strict it entails airlines such as Mango
ECONOMIC Refer to the wider economy and include economic growth rates, levels of employment and unemployment, cost of raw materials such as energy, fuels and inputs for production, interest rates, monetary policies, exchange rates and inflation rates. Economic growth is a guaranty of more and more travels within the country and as well as international travels by both locals and foreigners. Exchange rates are in favour of the rand and low inflation meaning more disposable income results in income growth and high volumes of business for the airline industry. But, of late due to the economic downturn since 2008 this has had a negative impact on the industry. Low cost airlines such as Mango have to come up with effective business strategies that ensure cost effectiveness in operation cost as well increase in price for the services they offer in order to maintain their customer relations as well as gain new ones.