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Environmental Factors Influencing Development

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Discuss about the Environmental Factors Influencing Development.



Based on the personal opinion, it can be stated that Malaysian Airline does provides a product or a service to the clients. Malaysian Airlines is a global aviation organization with its auxiliary and equity investments, organized into four distinct commercial sections namely, Air transportation, Ground services, Aircraft leasing and Talent development. Malaysian Airlines has its structure created in such a manner that it serves the drive for better transparency and focused management across the respective auxiliary divisions of the company’s distinct and diverse divisions (Oum, Tae Hoon, and Chunyan 2012). Apart from ensuring a better transparency and governance the commercial divisions ensures a flexibility to explore the merger opportunities for raising the capital to sustain itself, ensuring a better operational activities as classified under the auxiliary divisions making it more competitive and prompt to serve better to the clients (Frynas, Jedrzej George and Kamel Mellahi 2015). The largest contributing division of the organization is the Air transportation services that include the Malaysian Air Berhad, Firefly and MASwings, network carriers that serves both the Global and Domestic markets and all the distinct segments of the passengers. Under the operations and the services as offered by the Malaysian Airlines, comes another division of services known as the MAB Kargo that specializes in providing standard, express and special cargo. The Malaysian Airlines, which is a subsidiary of the Malaysian Airlines Group also, specializes in exceptional services like ground handling services, engineering, training of the facilities as well as the leasing of the aircrafts to provide customized and competitive aviation/aircraft leasing solutions. The Malaysian Airlines is a national carrier of Malaysia that serves the clients, form and around Malaysia. It embodies and serves the clients with the incredible heritage, tradition, cultures, cuisines and hospitality. In this manner, it can be justified that Malaysian Airlines offers its products or services to its clients and can be possibly considered as a multinational or global company (Van der Linden 2015)
Based on the marketing mix Malaysian airlines has carefully managed and maintained all the seven marketing mix elements to effectively deal with the crisis after the loss of the two airlines. In case of identifying the primary four marketing mix it can be mentioned that the Product, Price, Place and Promotion have been well managed to amend back its reputation (Lee, Kiefer, and Steve Carter 2012. Based on the product mix, Malaysian airlines offer all the three classes in the international bound flights while on the economy and the business class flights to help serve the global customers better. It has around 75 aircrafts in its fleet where Boeing manufactures 54 out of them and the rest of them have been manufactured by Airbus. With reference to the Pricing mix, post crisis Malaysian airlines have cut down the pricing due to the high competition as well as to rebuild the brand post crisis. The providing of special treatment and premium quality services have helped it gather distinction from the other low cost flights. The serving of complementary drinks and meals has won many compliments justifying its pricing strategy. The place mix have highlighted and improvised the networking system with the flights operating from the home base of Kuala Lampur International Airport and a secondary hub of Kota Kinabalu. The place of operation includes several other international and domestic routes across a hundred and fifty countries with the assistance of its globalised networks. The promotion mix of Malaysian airlines includes the efforts that have been made to rebuild it brand as a premium and safe carrier after the crisis. The careful use of Public Relation activities including the sponsorship of Premier League football teams has been extensively helpful. The traditional methods of advertising through various medium helped it spread its brand name across the diverse sections of customers (De Mooij 2013). As a part of the customer retention activities, Malaysian airlines began offering frequent flyer programs to the regular customers, including dedicated online flight booking facilities.


In rebuilding the brand, the foreign markets have become the primary focus for Malaysian airlines. The reason to consider so is that Malaysian airlines have been serving as a critical enabler to connect Malaysia to the world, while stimulating the integrity and the integration of the entire nation (Deresky 2017). The situation and the consideration of the Malaysian airlines are quite different since the airlines not only serve its customers but it also is one of the crucial representations of the nation to the entire world. It is the main source how the world is exhibited with the Malaysian tradition and hospitality. This has also been helpful for the millions of tourists and the businesspersons to relish on the Malaysian culture, heritage and beauty as well as the active economy. Malaysian airlines are also one of the significant factors responsible for the development of the nation since it drives nation to achieve a better economy. As per the records, the aviation industry is one of the high grossing and income multiplying industries than any other sectors. The unique combination and the attribution of the Malaysian airlines as a national, economic and a domestic bond with the entire world makes the success of the airlines highly vital for the nation and its government. For every single individual the company recruits another four jobs are supported elsewhere in the world, so it can be considered as one of the significant flow in the economy (Steers, Richard and Luciara Nardon 2014). Thus, these are the reasons that can be considered while concluding the fact that the overseas market has become the prime focus for the Malaysian airlines.
It can be likely considered that the culture has been one of the partial factors that is responsible for the errors in the judgment. As per the information refurbished by the marketing manager of Malaysian airlines, it can be concluded that the current social and technological advancement can be used as one of the significant tools to propagate one of the successful campaign, which are based on the informed decisions and the learning outcomes from the past campaigns. Malaysia is a diverse market that has multicultural and multiracial inhabitants with multilingual dialects, so the contents that is needed to be used should be selected carefully and customized for all the sections of the people. Failure to use the right medium of propaganda that can be helpful to reach a large section of people can be a viable mistake that the company can commit (Smith 2013). Most of the time the company chooses to focus on the bigger campaign ideas instead of focusing on the strongest idea to help the company gain back its reputation. Failure to reconsider the quality of the services and the customer needs can also be considerably one of the probable and critical mistakes that the company can commit in post crisis campaign. Specifically targeting of the Muslim inhabitants of the nation would be a probable mistake since judge and indiscrimination based on race would lend a severe blow to the company. Improper and judgmental methods and ideologies of retention of consumer can also be one of the crucial mistakes that can affect the company’s rebranding campaign. Lack of imparting proper justification and misleading the consumers can be a possible cause of campaign failure since the Public relation activities are executed to establish a mutual trust between the company and the publics, failure to do so can diminish the purpose of the campaign as a whole.


Global approach to the international marketing approach to a firm venturing in the overseas is extremely significant and crucial (Peng 2013). There are certain major reasons to believe so and act accordingly. The first reason is to increase sales. For example if a business is flourishing its productivity in the host nation, it is likely to generate higher sales in the other markets as well. It can be assumed that more that 90% of the world’s population retort to vernacular language apart from English, thus it can be concluded that the population is extensively global and if the company can look beyond the shores of only the domestic productivity it should also be able to understand its prospects and potential outside the area of control. The second reason is improvement in the profits. Many firms are not considerably competitive so therefore the price pressures is less. It can likely be considered that a product sold in the home country significantly costs higher in the foreign markets and the primary reason being the export markets (Mukherjee et al. 2013). The third reason is short-term security where the business would be less liable and venerable to the fluctuations and downturns of the market. The fourth reason is long-term security where the host market would probably sustain a high competition from within and outside. So a firm having excess capacity would be necessarily look forward to trade internationally, if the firm wishes to keep up with the expanding market and apply its potential. The fifth reason is to increase innovation, where the extension of the customer base both domestically and internationally would help the firm to finance the development of a new product. The sixth reason is the exclusivity where a firm’s management might have exclusive information and knowledge about the international prospects and the market that the other companies are not necessarily aware about. This can help the firm grow both internally and extensively. For all these reason, the international approach to a global market is appropriate for any firm (Terpstra et al. 2012).

The six significant factors that should be considered by any firm to sustain itself in the market are Demographic, Economic, Political, Ecological, Socio-cultural and Technological factors (Radebaugh 2014).  The demographic forces relate to the people and the population based on the density, age, gender, occupation and the other statistics. Understanding the demographics is necessary since the reason of the business is dependent on the needs and demands of the demographics. The economic factor signifies the factors that affect the consumer purchasing behavior and their contribution towards a brand or product. The socio-cultural factors refer to the factors that affect the society’s basic value and norms including their behavior and preference. The basic concept of the same is generated from the fact that the consumers are a vital part of the society and the peer cultural group is fundamental in shaping their beliefs and perception. Few business failures often tend to occur due to the lack of understand the cultural attributes. Ecological factors are also the natural forces that are necessary to understand since the natural resources are one of the primary inputs that should be taken into consideration. Political forces are equally vital for any business since the political environment limits every business. This includes the laws, the public agencies and the pressure groups which influences and can restrict the organization and individuals in the society, this affecting the business. Thus, it can be concluded that the marketing decisions and business operations can be strongly influenced and affected by the developments in the political environment.


The lead users are considered as important resources for the marketers to manage adoption and diffusion of wearable technology products. From the various evidences, it can be seen that the lead users are more concerned with the innovation and developments in various domains with the perceiving and adoption of newer technologies. The lead users have the abilities to demonstrate strong leadership opinions and lesser abilities to obtain the opinions and feedbacks. The lead users concept is an important aspect of the marketing discipline, which focuses on the management of innovation and even discusses the various implications of developing products, innovating those and remain beneficial for the marketers (Aldhaban 2012). Though the lead users have lesser roles and responsibilities in the development of products, they are more focused on the adoption and diffusion of new consumer products and services. The lead users gain the most of benefits from the innovation procedures and can even help in meeting the needs and requirements of people that are left unfulfilled by the commercially available products (Chuah et al. 2016).

Wearable technologies have led to the improvement in technologies and few examples of wearable technologies are smart watches, Google glass, etc. The wearable technologies are small yet convenient for the management of various tasks including most of the things that can be done on a smart phone. It has enhanced the way of managing communication has also made it easy to make calls, surf internet as well as progress in everyday lives quite easily (Chuah et al. 2016). The wearable devices have fulfilled most of the tasks performed on a smart phone and these devices consist of mp3 player, camera, bank apps and can even make calls and capture videos anytime and anywhere. There are other ways of socializing with people with the help of these wearable technologies and these can also facilitate the use of technology to change the process of communication largely (Kim, Ki Joon and Dong-Hee Shin 2015). Social networks could also be accessed with the use of these wearable technologies and this could further help in gaining accessibility to various networks too.


With the use of wearable technologies, social media access has been easy and it has enabled many people to communicate with each other and update every move made by people. The Voice over Internet protocol or VoIP has also revolutionized the areas of communication by using wearable technologies. The lead users are responsible for the marketing activities and so it is necessary for them to use the wearable technologies and make sure that the marketing activities are managed properly (Thierer 2015). By using the wearable technologies, the lead users would be able to communicate with the businesses and check out their needs and preferences to fulfill those and make the organization successful in the competitive business environment. The wearable technologies promote instant connectivity along with various kinds of entertainment activities. The wearable technologies have changed the way brands and marketers connect with the leader users with the use of GPS, Google search history, etc (Thierer 2015). the lead users have capitalized on the brands by personalizing their messages and experiences that have been delivered to the customers. The lead users, by utilizing the wearable technologies, have managed to facilitate the instantaneous connections and evolved the business successfully too. It is easy for them to make phone calls, access internet and even capture pictures and videos in case of emergency to make progress in business (Aldhaban 2012). There are few other benefits too such as improving personal safety and these devices can even provide security for the various files and information that have been stored.



Aldhaban, Fahad. "Exploring the adoption of Smartphone technology: Literature review." In Technology Management for Emerging Technologies (PICMET), 2012 Proceedings of PICMET'12:, pp. 2758-2770. IEEE, 2012.

Chuah, Stephanie Hui-Wen, Philipp A. Rauschnabel, Nina Krey, Bang Nguyen, Thurasamy Ramayah, and Shwetak Lade. "Wearable technologies: The role of usefulness and visibility in smartwatch adoption." Computers in Human Behavior 65 (2016): 276-284.

De Mooij, Marieke. Global marketing and advertising: Understanding cultural paradoxes. Sage Publications, 2013.

Deresky, Helen. International management: Managing across borders and cultures. Pearson Education India, 2017.

Frynas, Jedrzej George, and Kamel Mellahi. Global strategic management. Oxford University Press, USA, 2015.

Kim, Ki Joon, and Dong-Hee Shin. "An acceptance model for smart watches: implications for the adoption of future wearable technology." Internet Research 25, no. 4 (2015): 527-541.

Lee, Kiefer, and Steve Carter. Global marketing management. Oxford University Press, 2012.

Mukherjee, Malobi, Richard Cuthbertson, and Elizabeth Howard, eds. Retailing in emerging markets: a policy and strategy perspective. Routledge, 2014.

Oum, Tae Hoon, and Chunyan Yu. Winning airlines: Productivity and cost competitiveness of the world’s major airlines. Springer Science & Business Media, 2012.

Peng, Mike W. Global strategy. Cengage learning, 2013.

Radebaugh, Lee H. "Environmental factors influencing the development of accounting objectives, standards and practices in Peru." The international Journal of Accounting Education and Research. Urbana 11, no. 1 (2014): 39-56.

Smith, Ronald D. Strategic planning for public relations. Routledge, 2013.

Steers, Richard M., and Luciara Nardon. Managing in the global economy. Routledge, 2014.

Terpstra, Vern, James Foley, and Ravi Sarathy. International marketing. Naper Press, 2012.

Thierer, Adam D. "The internet of things and wearable technology: Addressing privacy and security concerns without derailing innovation." (2015).

Van der Linden, F. Robert. Airlines and Air Mail: The Post Office and the Birth of the Commercial Aviation Industry. University Press of Kentucky, 2015.


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