Micro and Macro Environment: Marketing Analysis of Airasia

Q1 – Actors of Micro Environment

Company Name 

Airasia Berhad

Competitors

1. Malindo Air  http://www.malindoair.com/ 
2. FlyFirefly Sdn Bhd   http://www.fireflyz.com.my/ 
3. Tiger Airways Singapore Pte Ltd  http://www.tigerair.com/sg/en/
4. SilkAir (Singapore) Private Limited http://www.silkair.com/SAA-flow.form?execution=e4s1 

Suppliers

1. Airbus SAS (supplies Airbus)

Intermediaries        

1. Expedia, Inc. (Agent Intermediaries)
2. CIMB Group (Finance Intermediaries)

Customers

1. Families
2. Business travellers

Public

1. The Star (Media Publics)
2. Pilots and Air Steward (Internal Publics)
3. Line Corporation (Media Publics)

Q2 – Macro Environment

1. Demographic Changes

The article speaks on Malaysia’s demographic changes that are expected to bring advantages and sets Malaysia at an ideal spot. The estimation of demographic ratios at 2015 shows potential in source of demand and growth. This is due to the rising of working-age population and when complemented by higher wages to gross domestic product (GDP), it translates into positive demographic dividends.

As the working-age population is the highest and currently at the most productive stage, it results to the growth of workforce and urbanisation. Hence, this encourages the upgrading of goods and services consumed. At the same time, dependency ration is estimated to drop, declining birth rates, and moderate rise in old age.

The large young population has become the key determinants of consumption trends, resulting to rising demand for gadgets, information technology (IT) and telco services in our country. Meanwhile, the 35 to 54 years age group will be the support for the country’s household spending in the future. The demographics are positive but to what extend it can reach it will need to depend on job creation, improvement in education, quality of labour, productivity and efficiency, savings by citizens, healthcare and elderly support.

In conclusion, demographics play an essential role in increasing economic growth, particularly in Asia.

Teo, R. (Ed.). (2015, January 11). Demographic dividends: Malaysia in a sweet spot. Retrieved August 24, 2015, from http://www.theborneopost.com/2015/01/11/demographic-dividends-malaysia-in-a-sweet-spot/

Impacts on Airasia

The demographic changes in Malaysia will mostly likely impacts the airline industry positively in terms of increase in sales. As the working-age population is increasing and complemented by higher wages, they can afford to travel more.