Q1: What is meant by the external business environment and what are its main components?
External environment refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. The external environment of an organization is those factors outside the company that affect the company's ability to function. Some external elements can be manipulated by company marketing, while others require the organization to make adjustments. Some main components of external environment are:
Growing use of internet
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g. the airline industry has become far more competitive in recent years because the number of passengers travelling has not increased in the way expected prior to September 11th. United Airlines has responded by introducing a number of innovations such as e-booking, increased comfort with safety provisions for passengers, and better facilities such as lounges where passengers can shower and take breakfast on arrival at a particular destination.
Q5: Why is it important for an organisation like United Airlines to be innovative?
Innovation captures the attention of the public particularly through media coverage of the respective merits of competitors in the airline industry. United Airlines is a major player in the airline market and is an industry innovator. Innovations include such aspects as promotional activity, establishing new standards for comfort and safety, investing in comfortable and convenient airport lounges, and offering premium services to First and Business Customers on arrival at a range of destinations. This passion for innovation means that United Airlines is talked about in a positive way, when people spend money on travelling by air they want a comfortable and enjoyable experience that they can talk about to their friends. Hence the importance of innovation at every stage of air travels.
Q6: Why is customer service important in a service-focused industry?
Customer service involves putting the customer first and providing the range of service benefits that best suit the needs of customers. Air passengers expect to be looked after from the moment they consider buying a ticket, to the time they leave the aircraft and consider which airline to choose on their next flight. United Airlines staffs are trained therefore to put the customer first and to continually consider the safety and comfort of passengers.
Q7: How does marketing enable United Airlines to respond to changes in the external environment?
Marketing involves finding out about the needs and requirements of your customers and then giving them what they want at a price...