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Environmental Analysis of Malaysia Airlines

Paper Type: Free Essay Subject: Marketing
Wordcount: 1148 words Published: 3rd Jan 2018

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The general environment represents the outer layer of the environment which are international, technological, sociocultural, economic, and the legal-political. The task environment includes all sectors that have a direct working relationship with the organization, customers, competitors, suppliers, and labour.

International element is represents the events originating in foreign countries. Technological element includes scientific and technological advancements in a specific industry and society. Sociocultural element represents the demographic characteristics such as norms, customs, and values of the general populations. Economic element is divided into and socialist. Capitalist means the organization will get the entire profit where else socialist means the production own by state or government. The legal political are about the government law and regulations as well as political activities designed to influence company behaviour.

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Customers are the people who acquire goods and service from the organization. Competitors and client are the other organization from the same industry that provides goods or services to the same set of customers. Supplier is the people who provide raw materials for the organization to provide output. Labour supply is the people in the environment who can be hired to work for the organization and can influence the organization labour markets. Government Agencies are the agency that provide services and monitor compliance through laws and regulations.


As mention in the company profile at Hoover’s website, Malaysia Airlines serves about 80 destinations on six continents, some via code-sharing, from its hub in Kuala Lumpur. According to an interview (En-Lai Yeoh, Associated Press Writer 2006), Idris Jala quoted that although MAS have many international competitors, the top competitors are among the regional rivals Singapore Airlines, Cathay Pacific, Thai Airways and Gulf Air. Low cost flight was also launch in Malaysia, few years back and named Air Asia. It became MAS local competitor. At first MAS was not really affected as this low cost flight named, Air Asia, only control the local state destination with a very cheap price. Slowly, Air Asia attract customer to fly using its flight. After sometimes, Air Asia launched its destination to outside Malaysia. MAS were affected not only by Air Asia but also other country low cost flight. MAS will face many difficulties if they were to beat the low cost flight’s pricing range.

Malaysian professional and skillful increased and they tend to travel quite frequent which they will seek for the great service with time efficiency offered, especially the successful businessman. In order for MAS to respond to the customer needs, they have send spies to their rival. This is one of the way that MAS can improve their weakness and at the same time to learn their rival’s weakness part. By receiving quite a number of awards, many customers were attracted.

Idris Jala quoted that the trade secret is MAS must establish the lowest fare, which all international routes will have designated seats matching their competition’s lowest fare. Currently MAS has also introduced their low cost flight called Fire Fly. Ticketing system were upgraded that able to monitor ticket prices to match the lowest offered by its competition on similar routes and possibly review its fuel surcharge, Idris Jala added (En-Lai Yeoh, Associated Press Writer 2006).

Malaysia Airlines has provided a very friendly website for its own respective customer which is providing the full controlling of the ticket booking system with all the details such as number of passengers, destination and so on to the very specific details.

Malaysia Airlines has some such as partners with Malaysia-based Maxis Communications Berhad and UK-based AeroMobile Limited to offer in-flight mobile services such as voice calls, SMS, emails services to Maxis post-paid customers. The rest of the facilities and services are the same as the other airlines like for in cabin services like providing the international meals as well as local food for Malaysians or Entertainment systems for watching Movie or playing games and also checking the status of the flight.

The airline provided the customers insurance during the flight hours in case if anything happened to the customers they will be responsible for it . And passengers can only carrying 30 KG for their luggage. Malaysia airline has been provided such a facility that if the customers accidently miss the flight they can just simple take the next possible flight. But sometimes customers need to pay some amounts to join the next flight and it’s all depends on the type of tickets that they purchased.

Sometimes for Malaysia Airlines ticket discounts will be. those few months before your travel tickets are purchased. And discounts for students that is considered. such as GRADS – the frequent flyer card for students. This card has local and international students. That students can use this card costs less to have their flights.

In the recent years, Malaysian Airlines (MAS) has been continuously improving their services with accordance to the rise in social network as well as smartphone users. New applications such as MHmobile, MHdeals, and MHbuddy complement each other to draw better publicity along with a good flow of business. A user-friendlier navigation following the website’s makeover has served no less. Existing yet innovative technology such as the Select in-flight entertainment system has also given MAS an extra edge over their competitors.


1. Malaysian Airlines (2011) ‘Malaysia Airlines Launches Going Places iPad App’ Investor Relations: News. http://malaysiaairlines.listedcompany.com/newsroom.html [Accessed 23 February 2011]

2. Malaysian Airlines (2011) ‘Refreshed Mas Website To Enhance Customer Experience’ Investor Relations: News. http://malaysiaairlines.listedcompany.com/newsroom.html [Accessed 23 February 2011]

3. SITA (2011) ‘Malaysia Airlines adopts SITA reservations system as turnaround enters new phase’ SITA: Specialists in air transport communications and IT solutions. http://www.sita.aero/news-events/press-room/press-releases [Accessed 23 February 2011]

4. Luxury Travel Source (2011) ‘Malaysian Airline Airfares from Luxury Travel Source’ Luxury Travel Source: Discount Travel Company offering Business Class Airfare tickets for Destinations worldwide. http://www.luxurytravelsource.com/airlines/malaysia_airlines.html [Accessed 24 March 2011]

5. Malaysian Airline System Berhad (10601-W) (2009). 2009 Annual Report: Investing in Growth. Subang Jaya, KL: Malaysia Airlines System.



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