Environmental Scan Of The Airline Industry Tourism Essay Essays

Environmental Scan Of The Airline Industry Tourism Essay Essays Environmental Scan Of The Airline Industry Tourism Essay Essay Environmental Scan Of The Airline Industry Tourism Essay Essay We have defined our relevant market for Flydubai as a low cost bearer within the merchandise signifier degree. Bing positioned as a low cost national air hose bearer, it s confronting a high competition from other national air hoses which force the relevant market to be within the merchandise signifier. ( For more information on the relevant market please mention to appendix 2 ) . This paper will concentrate on showing an environmental scan of the air hose industry within the Middle East part during the clip frame of 3 old ages ( 2009-2012 ) . In order to make so, we will place the important tendencies and their attendant deductions on Flydubai relevant market. This study will include an in deepness reappraisal of the macro, micro analysis and its deductions of Flydubai relevant market in the following three old ages. Body: In placing the major key tendencies in the macro environment of Flydubai, we have addressed several issues that include the political, societal and economical tendencies. Flydubai was established by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai orders in March 2008 and started its operation in its first flight to Lebanon on June 1st 2009.Being to the full owned by Dubai authorities and bask the full installations offered in terminal 2 at Dubai International Airport, the company is holding a competitory advantage compared to its challengers in the market as it enjoy the full authorities support and airdrome services. Furthermore, the current authorities tendency in the labour force is towards emiratization and protecting labours rights. Bing a portion of the Fly Emirates Group, the organisation will confront no job in emiratization as it will follow Fly Emirates emiratization scheme. The major challenge that Flydubai will confront is being able to offer high paid occupations and cut down its operational costs as it is considered a low cost air hose company. Populating in the current fiscal crises epoch, Flydubai was established in one of the most hard clip the state economic system had faced in the last 25 old ages. Falling oil monetary values, chilling existent estate and building markets, together with a lag in the touristry sector, particularly in Dubai, means the UAE is expected to post low or perchance negative GDP growing in 2009 , harmonizing to analysts ( Arabian Business, 2009 ) . This information may be considered negative to many air hose companies but it may be positive to a low cost air hose similar Flydubai as people are now concentrating more in cut downing their disbursals as the incomes are reduced. This means their inclination of consumers concentrating more on monetary values is increasing. Furthermore, consumer behaviour is altering towards low cost air hoses particularly in the Middle East part as consumers are persuaded by low monetary values and a better service offered by low cost air hoses. Harmonizing to a survey done by Arabian Business web site, it was found that 83 per centum of the respondents would exchange their preferable air hose bearer, for a cheaper monetary value, while 17.6 per centum believed they would see options and merchandise off between the price reduction and lost air stat mis. It can therefore be inferred that pricing plays a important function in consumer behavior and the determination doing procedure particularly in the current economic downswing epoch ( Glass, 2008 ) . Harmonizing to Dubai section of Tourism and commercialism selling 3.85 million tourers had visited the emirate in the first half of 2009, a five per centum addition on the same period of 2008 . This figure strongly shows the current touristry industry market and how attractive it became even though of the current economical downswing. Other figures expect that the figure of tourers will fall compared to 2008 figures but most figures have stated that there will be a positive growing in 2010. This figure shows that Flydubai will see a future growing rates in the coming 3 old ages as terrorist act sector restore its high figures after get the better ofing the current downswing. As observed by Andrew Cowen, CEO of SAMA Airlines, the market is switching from the traditional major air hoses concern travel towards low cost bearers for trips within the GCC. Business travellers are altering their perceptual experience of low cost bearers, supported by the current economic downswing and the addition figure of foreign concerns within GCC states come ining the UAE. This shows a tendency of an increasing demand for low cost bearers in the following three old ages ( High clip for low cost bearers, 2008 ) . ( For in depth information on the analysis of the macro environment of the air hose industry please refer to Appendix 3 ) In placing the major key tendencies in the micro environment the undermentioned facets that includes, Customers, Employees, media, stockholders, rivals and providers. Customers who are monetary value conscious are concerned with low cost air hoses. Flydubai has focused on pricing scheme and flexibleness because these two factors play a large function in finding the client s determination procedure on which air hoses they choose to go with. Furthermore, the figure of tourer from around the universe including the part will turn more than 40 % in the following 3 old ages in Dubai ( www.realtyna.com ) . This shows that there will be increased figure of clients who will utilize Flydubai air hoses within the following three old ages due its successful usage of pricing scheme and flexibleness. The Employees of Flydubai have good experiences and they were carefully selected from 12 different nationalities. Harmonizing to Kenneth Gile, main runing officer of Flydubai said: We are highly pleased with the endowment of the pilots we have on board. On norm, they each have more than 4,000 hours functioning every bit captain in similar aircraft and a entire experience of more than 8,000 winging hours this is impressive by any criterion ( Sambidge, 2009 ) . Flydubai is to the full owned by the authorities of Dubai and its considered as a portion of its female parent company the Emirates Group. The chief scheme that Flydubai is willing to utilize for their selling scheme is through word of oral cavity ( bombilation ) . This is because Flydubai is a low cost air hose ; they tend to put low budgets for their advertizements to maintain their monetary values low. The direct rivals of Flydubai are Air Arabia and Al Jazeerah air hoses because these two air hoses are besides low cost air hoses in the same state as Flydubai. However, the major rival of Flydubai is Air Arabia because, foremost of all, they are the first to claim about low cost air hoses in the Middle East part. Furthermore, they hold the highest market portion in the relevant market as identified before. Our market portion comparing to those two carries are low because Flydubai merely late launched to the market. But, within the following three old ages we expect rapid growing in the market portion because Dubai is a finish for tourers. The major indirect rival is Fly Emirates which stands as the leader in air hose industry in the relevant market and it will maintain its public presentation in the following three old ages. The 2nd indirect rival is Etihad Airlines which is turning fast because of the limitless support from Abu Dhabi authorities. In add-on, those air hose bearers m ake low monetary value offers for the same finish that we have flight lines to. The provider of Flydubai is Boeing. Flydubai announced an order of 50 following coevals 737 aircraft from Boeing. Sheikh Ahmed bin Saeed Al Maktoum said: The Boeing Next-Generation 737 is ideally suited to our mission to convey some two billion regional dwellers low-cost, efficient and flexible travel options to and from Dubai. ( For more information on the micro environment analysis, delight mention to Appendix 4 ) . Deductions: Primary demand: Low cost air hoses are concentrating on clients who are monetary value witting. The figure of clients utilizing the LCC air hoses is increasing and it will go on turning in the following three old ages ( www.gulf-daily-news.com ) . This is because, foremost of all, the per centum of tourers will increase by 40 % within the following three old ages which shows that the market portion of LCC will increase every bit good. Second, because of the economic status, many people tend to salvage money and spend it on low cost air hoses to go more to the coveted finishs. Users of Low cost air hoses contain all different ages and nationalities. Furthermore, cost is one of the chief factors that affect client s ability to purchase. The costs of these bearers are low and will go on to stay low in the following three old ages. This will increase client s ability and willingness to purchase. Selective demand We can specify the consumer determination doing procedure as an extended job work outing degree, where they are introduced to a complete new trade name with low trade name cognition. So, Flydubai should infusive more on their trade name individuality through the media and other communicating types in order to enrich consumer s cognition. Once Flydubai had increased the degree of consumer cognition, we expect immense addition in market portion in the following three old ages because the determination devising procedure is traveling to switch from extended job work outing to routine which is low information hunt about the company. Therefore, we expect major alteration within the following three twelvemonth upon the factors we mentioned above. Cleavage: As for cleavage we expect to see a rise in the population of the UAE in the undermentioned 3 old ages. Harmonizing to the electronic portal of Gulf News the population of UAE is nearing six million as of now and it is expected to intensify even further by the terminal of this twelvemonth. An addition in building in the coming old ages requires more labour to be imported from foreign states, therefore increasing the figure of possible clients ( low income and middle-class life styles ) who might desire to utilize our services. Furthermore, economic roar can besides be a factor for business communities to go to and from Dubai more often. In add-on, the figure of pupils going to the UAE for instruction is expected to increase in the close hereafter ; this implies that they will most likely choice Flydubai as their primary manner of conveyance to go to and from the UAE, since the economic status shows really small marks of betterment in the close hereafter. More tourers are expected to get in the UAE within the close hereafter out of which a subdivision of them are highly monetary value sensitive travellers. Another scenario would be that the current economic downswing continues to consequence economic systems world-wide within the coming three old ages increasing the figure of price-sensitive clients in the eight markets we operate in. To maintain up with the jutting demand, Flydubai is be aftering to increase its swift size from 5 ( presently ) to 54 aircrafts in the coming old ages. An addition in swift size would let Flydubai non merely to suit a big figure of clients but besides expand its range in footings of finishs. Conversely, the proclamation of the new GCC rail web which is the new transit category in our relevant market is expected to hold a little negative consequence on Flydubai s operations in footings of fring clients that fall in our mark cleavage. The GCC rail web and Flydubai have one common finish which is Qatar. Once the GCC rail web begins its operations there is a high possibility of losing out on our current and possible clients. ( For more information on cleavage please mention to appendix 5 ) . Rival analysis Our major competitory in our comparative market is Air Arabia and so Al Jazeera Airlines. Air Arabia is keeping major market portion because they are the first to claim about establishing foremost low cost air hoses in Middle East part. However, Flydubai can vie with those two direct rivals when we focus on our competitory advantage which is monetary value leading. Besides, location is another of import factor due the figure of travellers that are utilizing Dubai Airport comparing to Sharjah Airport. In add-on, being portion of the Emirates Group will add more value to Flydubai trade name equity which will do it easier to do clients switch toward our company within the following three old ages. ( For more information on rival analysis, delight mention to Appendix 6 ) Decision: In decision after analysing the environmental micro and macro tendency for Flydubai, we observed that there are two major alterations in our relevant market. First, the addition of the touristry degree in Dubai as we expect the current economic downswing epoch to alter its way towards positive figures in the following three old ages. Besides, the companies holders and business communities attitude towards low cost air hoses is altering by utilizing it as these air hoses are supplying concern work forces services on board such a concern category and wireless cyberspace connexion. The figure of rivals within the low cost air hose industry is traveling to increase in the coming old ages as new air hoses such as Bahrain Airlines starts its operation this twelvemonth. Second, full service air hoses are spread outing their market towards low cost air hose by presenting low monetary value tickets that attract monetary value sensitive consumers. We expect that within the following 10 old ag es a new category degree will come in the market in the GCC part which is trains transit. Besides, a new signifier degree will emerge in the relevant market which is a combination between full services and low cost bearers. Finally, within the following three old ages we expect those alterations in the relevant market to be reshaped impacting the primary and selective demand. Bibliography ( 2009, October 18 ) . Flydubai air hose. Retrieved from hypertext transfer protocol: //www.dubaifaqs.com/Flydubai.php McKechnie, D, Grant, J, A ; Katsioloudes, M. ( 2008 ) . Positions and placement: scheme merely stated. Emerald Group Publishing Limited, 9 ( 5 ) , Retrieved from hypertext transfer protocol: //www.emeraldinsight.com/Insight/ViewContentServlet? Filename=Published/EmeraldFullTextArticle/Articles/3300090502.html Department of the Interior: 1751-5637 ( 2009 ) . Environmental scanning. Wikipedia. Retrieved ( 2009, October 17 ) from hypertext transfer protocol: //en.wikipedia.org/wiki/Environmental_scanning ( 2009 ) . Flydubai. Wikipedia. Retrieved ( 2009, October 17 ) from hypertext transfer protocol: //en.wikipedia.org/wiki/Flydubai ( n.d. ) . flydubai, who we are. Retrieved from hypertext transfer protocol: //www.Flydubai.com/whoweare/fleet.aspx ( 2009, June 8 ) . Two more tough old ages for the air hoses. Retrieved from hypertext transfer protocol: //www.eturbonews.com/9675/two-more-tough-years-airlines Nagraj, A. ( 2009, September 16 ) . Gloomy skies for the air hose industry. Retrieved from hypertext transfer protocol: //www.kippreport.com/2009/09/gloomy-skies-for-the-airline-industry/ Centre for Asia Pacific Aviation, Initials. ( 2009, October 15 ) . Middle East LCC wrap: Air Arabia, Jazeera, Flydubai, nasair, sama and Bahrain Air. Retrieved from hypertext transfer protocol: //www.centreforaviation.com/news/2009/10/15/middle-east-lcc-wrap-air-arabia-jazeera-Flydubai-nasair-sama-and-bahrain-air/page1 Riaz, D, A ; Kapadia, S. ( 2007 ) . Air Arabia, Priced so that you can wing [ 5-14 ] . ( Adobe Digital Edition Version ) , Retrieved from hypertext transfer protocol: //ae.zawya.com/researchreports/efg/20070701_efg_110604.pdf Schewe, , Charles, D, A ; Hiam, A. ( n.d. ) . market cleavage. Retrieved from hypertext transfer protocol: //www.quickmba.com/marketing/market-segmentation/ ( 2009, 10 07 ) . UAE population reaches six million. Retrieved from hypertext transfer protocol: //www.google.com/hostednews/afp/article/ALeqM5j24H1v8s1BWuNXEwptqRIiB_-OOA ( 2009, 10 07 ) . Expat Numberss rise quickly as UAE population touches 6m. Retrieved from hypertext transfer protocol: //uaeinteract.com/docs/Expat_numbers_rise_rapidly_as_UAE_population_touches_6m/37883.htm ( 2009, April 7 ) . FlyDubai opens for concern with flights to Beirut and Amman. Retrieved from hypertext transfer protocol: //www.ameinfo.com/191649.html ( 2009, October 8 ) . Number of tourers in Dubai set to turn by 40 per cent. Retrieved from hypertext transfer protocol: //74.125.153.132/search? q=cache: EPQhPUeolAEJ: www.realtyna.com/dubai_real_estate/dubai-rss-news/number-of-tourists-in-dubai-set-to-grow-by-40-per-cent.html+http: //www.realtyna.com/dubai_real_estate/dubai-rss-news/number-of-tourists-in-dubai-set-to-grow-by-40-per-cent.html A ; cd=1 A ; hl=ar A ; ct=clnk A ; gl=ae Sambidge, Initials. ( 2009, March 18 ) . flydubai appoints pilots, cabin crew. Retrieved from hypertext transfer protocol: //www.arabianbusiness.com/549994-Flydubai-appoints-pilots-cabin-crew Sambidge, A. ( 2009, August 11 ) . Dubai tourists up 5 % in H1 functionary. Retrieved from hypertext transfer protocol: //www.arabianbusiness.com/564508-dubai-tourists-up-5-in-h1 -official ( 2009, 10 07 ) . UAE population. Retrieved from hypertext transfer protocol: //archive.gulfnews.com/articles/09/10/07/10355378.html Redpath, H. ( 2009, June 16 ) . Dubai s First Low Cost Airline Takes Off. Retrieved from hypertext transfer protocol: //multivu.prnewswire.com/mnr/Flydubai/38830/ Redpath, H. ( 2009, June 16 ) . Dubai s First Low Cost Airline Takes Off. Retrieved from hypertext transfer protocol: //www.zawya.com/story.cfm/sidZAWYA20090616081711 Appendix 1 Back Ground information on Flydubai: Flydubai is the UAE 2nd low cost air hose that was established in March,3rd 2008 on the orders of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai. The company foremost flight was in June 1,2009 to Beirut in Lebanon followed by flights to Amman, Jordan, on June 2, Damascus, Syria, on June 8 and Alexandria, Egypt, on June 9, giving the new air hose a sum of four finishs in merely nine yearss. ( Redpath, 2009 ) . The company had ordered 50 Boeing 737 and is traveling to have 10 aeroplanes each twelvemonth for the following five old ages. ( Flydubai,2009 ) Currently the company runs its operations in Dubai International Airport terminal 2 that was redesigned for the new air hose. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Flydubai said: This part is really dependent on air conveyance. It is a great recognition to the vision and leading of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, that this air hose has now taken off, thereby guaranting occupants and visitants likewise will be able to go to more topographic points more frequently. ( Redpath, 2009 ) . The Flydubai theoretical account is simple, with clients merely paying for the services they want. The ticket monetary value includes all revenue enhancements and one piece of manus luggage, weighing up to 10kg, per rider. Passengers have the option to buy checked-in luggage in progress at merely 40AED for the first piece and 100AED for the 2nd, weighing up to 32kgs, capable to handiness. Checked luggage is purely capable to handiness and riders are advised to book early to procure the infinite, as merely pre-purchased luggage can be guaranteed. ( Redpath, 2009 ) Flydubai aims to do travel a small less complex, a small less nerve-racking and a small less expensive, explained Flydubai CEO Ghaith Al Ghaith. Our riders have the option to custom-make their travel experience depending on what services they want and how much they want to pay. ( Redpath, 2009 ) We plan to excite the markets in which we operate and encourage people to go to more topographic points more frequently. Flydubai purpose is non to drive traffic off from the other bearers but to assist turn these markets. When you consider that low cost travel in this part could be every bit small as 2 % of all air travel, as opposed to more than 20 % in Europe and America, it is clear that there is a batch of untapped potency in these markets. ( Redpath, 2009 ) In add-on, Flydubai will wing to airdromes that are presently underserved by the traditional bearers. In a part which is so dependent on air conveyance, we are looking frontward to supplying the world of accessible, low cost, uncomplicated travel ( Redpath, 2009 ) . Appendix 2: Merchandise Market Structure: The above market construction was used to place Flydubai relevant market within the air hose industry in the Middle East part. We started the construction with the most basic demand which is the demand to go in the part. This provided us with three options that include aeroplanes, coachs and autos. The merchandise signifier is divided between full service bearers and low cost bearers as they differentiate in monetary values and services being offered to clients. From this construction we can place Flydubai relevant market within the merchandise signifier degree. This is because the grade of competition and replaceability within the trade name providers are high, as they all offer low monetary values with similar paths within the part. This push the relevant market upwards towards the merchandise signifier degree. Furthermore, Flydubai indirect rivals include Fly Emirates, Etihad air hoses and Saudi air hoses. These full service air hoses are viing with Flydubai indirectly by supplyin g low monetary values with full services. On the other manus our direct rivals include Air Arabia and Al Jazerra air hoses that are both low cost air hoses that perform within the part. Further account on competition will be provided in the Micro analysis in the rivals subdivision. Appendix 3 Macro Environment: In analyzing the external environment of Flydubai in the following three old ages we will concentrate on the Macro and Micro environment. This survey will assist us in happening out the consequence of these external factors on the company in the following few old ages. The Macro environment factors will include Political, economical, societal and technological facets under which Flydubai will be affected by. 1 ) Political Analysis: A ) Government Regulations: Flydubai was established with orders of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai. Being owned by the Dubai authorities the company faces no troubles in Torahs and ordinances as the air hose industry in the Emirates is dining through the procedure of liberalisation the air hose industry that the United Arab Emirates is accommodating. B ) Political Analysis: In analyzing the overall political environment of the United Arab Emirates, we find it one of the most stable states within the part. Such political attack of peace seeking had made the state a trading hub in the part. This will surely hold its positive consequence on flydubai operations as to execute in stable political environment. C ) Employment Laws: Protecting labours rights and Emiratization is considered the chief facet that the UAE authorities is taking into consideration now a yearss. Companies are now forced to hold a certain per centum that of emirates locals that will increase in the undermentioned old ages as there is more accent on using locals in the private sector. Bing a portion of Emirates Airlines Group, Flydubai will surely accommodate its female parent company in hiring and preparation locals in suited occupations. The challenge that Flydubai will traveling to face is to diminish costs in one manus and supply good paid occupations in the same clip. 2 ) Economic Analysis: A ) Inflation Rate: The rising prices rate in the UAE is predicted to fall from last twelvemonth s 11.1 per centum degree to seven per centum in 2010, harmonizing to a new study. ( Sambidge, 2009 ) . This is considered a positive facet for Flydubai as it will hold its positive effects in cut downing the company costs in oil and land operations. High rising prices rates making to 11 per centum last twelvemonth was a menace to low cost air hoses such as Air Arabia and Al Jazerra Airlines that faced a job of high oil monetary values. This good intelligence will do Flydubai vie even stronger on monetary values as rising prices rates goes down. B ) Economic Analysis: Falling oil monetary values, chilling existent estate and building markets, together with a lag in the touristry sector, particularly in Dubai, means the UAE is expected to post low or perchance negative GDP growing in 2009, harmonizing to analysts. ( Sambidge, 2009 ) . Populating in the current World Financial Economic Crises the UAE economic system in general and Dubai in specific faced a difficult clip in 2009 but analysts forecast that there will be more positive figures in 2010. This information is considered a negative excessively many air hose companies but may be positive to Flydubai as people are now more focal point in cut downing their disbursals as the incomes are reduced. This means their inclination of consumers concentrating more on monetary values which is a positive thing for a low cost air hose. Additionally, analysts forecast that the economic system will turn in 2010 once more and this will surely hold its consequence on the company growing. 3 ) Social Analysis: A ) Demographics: More than 300,000 people will be added to the UAE population this twelvemonth to enter the highest growing of 6.3 per cent in five old ages and Dubai would probably emerge as the fastest turning emirate, official figures show. The rise slights studies that the planetary fiscal turbulency has triggered a mass hegira of exiles out of the state, chiefly Dubai. From 4.75 million in mid 2008, the UAE s population is projected to increase to 5.066 million in mid 2009, showed the figures by the Ministry of Economy. This figure are traveling to increase in the following few old ages which will surely hold its positive effects on the air hose industry in UAE sing that exiles make an approximative per centum of 80.1 of the above figure in 2009 harmonizing to the ministry of economic system. Furthermore, the figures show that the 25-29 twelvemonth age group was the largest in the UAE in mid 2008, standing at 777,186. It was followed by the 30-34 age groups, which was estimated at 754,289 and 35-39 groups of 588,505. This clearly indicates that most of the population is immature and is traveling to determine the touristry and air power market in the following twosome of old ages. B ) Consumer Behavior: Harmonizing to a survey done by Arabian Business web site, it was found that 83 per centum of the respondents would exchange their preferable air hose bearer, for a cheaper monetary value, while 17.6 per centum believed they would see options and merchandise off between the price reduction and lost air stat mis. It can therefore be inferred that pricing plays a important function in consumer behavior and the determination doing procedure particularly in the current economic downswing epoch. Furthermore, client trueness in the low cost bearers is low as it s straight related to monetary value. Flydubai should see this into history and present client trueness plans in order to keep a higher degree of client trueness. ( Glass, 2008 ) . C ) Leisure Interests: 3.85 million tourers had visited the emirate in the first half of 2009, a five per centum addition on the same period of 2008 Harmonizing to Dubai section of Tourism and commercialism selling. This figure strongly shows the current touristry industry market and how attractive it became even though of the current economical downswing. Other figures expect that the figure of tourers will fall compared to 2008 figures but most figures have stated that there will be a positive growing in 2010. D ) Career Attitude: Business travellers are altering their perceptual experience of low cost bearers. As observed by Andrew Cowen, CEO of Same, the market is switching from the traditional major air hoses concern travel towards low cost bearers for trips within the GCC. This altering attitude, supported by the current economic downswing and the addition figure of foreign concerns within GCC states come ining the UAE, shows a tendency of an increasing demand for low cost bearers in the following three old ages. ( High clip for low cost bearers, 2008 ) . Tocopherol ) Technological Development Analysis: Following its female parent company Emirates Airlines, we expect that Flydubai go a market leader in supplying advanced technological solutions to its riders by utilizing the big experience that emirates air hose have. If such way was adapted, it will surely supply the needful strength that Flydubai need in viing with its direct and indirect rivals. Appendix 4 Micro Environment: Stakeholder Analysis: This means to analyse the micro environment which includes the undermentioned factors: the clients, employees, stockholders, media, and the rivals. A ) Customers: Customers who are monetary value conscious are concerned with low cost air hoses. Flydubai has focused on pricing scheme and flexibleness because these two factors play a large function in finding the client s determination procedure on which air hoses they choose to go with. Price scheme and flexibleness of Flydubai include low pricing scheme and easy booking with increased picks. As Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of Flydubai said: As a true low cost air hose we are geared towards supplying our riders with the best monetary value and increased pick. We will run expeditiously and continually germinate to present the best possible merchandise to our clients . ( Flydubai opens for, 2009 ) . The cost of Flydubai from Dubai airdrome to Doha airdrome would be 200DHS, whereas other major air hoses such as ; Emirates or Qatar air hoses would be about 1000 or more for a one manner ticket ( Flydubai place page, 2009 ) . This shows that Flydubai is much cheaper and has manag ed to maintain monetary values low due to the successful usage of their pricing scheme. Furthermore, the figure of tourer from around the universe including the part will turn more than 40 % in the following 3 old ages in Dubai ( Number of tourers, 2009 ) .This shows that there will be increased figure of clients who will utilize Flydubai air hoses within the following three old ages due its successful usage of pricing scheme and flexibleness. B ) Employees: Flydubai air hose has received more than 11,500 applications from flight and cabin crew. There are 18 first officers, 61 captains, and about more than 8000 campaigners for pilots were selected from 12 different nationalities ( Sambidge, 2009 ) . The staff has good experiences and was carefully selected. Harmonizing to Kenneth Gile, main runing officer of Flydubai said: We are highly pleased with the endowment of the pilots we have on board. On norm, they each have more than 4,000 hours functioning every bit captain in similar aircraft and a entire experience of more than 8,000 winging hours this is impressive by any criterion ( Sambidge, 2009 ) . Furthermore, employee and staff cordial reception is really of import. This is because the employees and staff were selected from 12 different nationalities and they need to experience comfy with the new civilization they are confronting in order to work expeditiously. D ) Stockholders: Flydubai is to the full owned by the authorities of Dubai and its considered as a portion of its female parent company the Emirates Group. The company has no other stockholders presently as there its 250 million dirham s capital is wholly raised by the authorities. Tocopherol ) The media: Obviously, through observations, Flydubai has made many advertizements through promotion such as ; Newspapers ( e.g. gulf intelligence ) and internet web sites. However, the chief scheme they used or willing to utilize for their selling scheme is through word of oral cavity ( bombilation ) . Since Flydubai is a low cost air hose, they tend to put low budgets for their advertizements to maintain their monetary values low. So the best manner to carry on an advertizement method for low cost bearers is through word of oral cavity. ( This information is based on analysis due to facts and observations ) . Appendix 5 Primary demand: After doing the environment analysis for the following three old ages and analyzing the current market conditions, we identified Flydubai relevant market at the merchandise signifier degree. This is because there is a high competition within the trade name supply degree coercing it towards the merchandise signifier degree as they all offer low monetary values with similar finishs. After the fiscal crisis, we noticed a displacement toward low cost air hoses as incomes had decreased. This had its effects on the undermentioned primary demand elements that include: Buyer Designation: The figure of clients utilizing the LCC air hoses is late increasing ( www.gulf-daily-news.com ) . Users of LCC Airlines contain all different ages and nationalities. However, these air hoses are concentrating on clients who are concerned about monetary values since it is a low cost air hose. Customers now a yearss are non merely concerted with monetary values but are looking for other services provided along the trip such as land services, easy engagement system and accurate timing agendas. Peoples who are concerned about monetary values look for cheaper air hoses, people who are concerned about comfort expression for comfy seats, and people who are concerned about booking flexibleness expression for easy engagement provided by air hoses. Some low cost air hoses provide these characteristics to clients in order to derive the maximal market portion. The Buying Center As mentioned before, many clients are concerned and prefer air hoses with low monetary values and comfort. The usage of media such as advertisement can be really effectual in client s buying determination procedure. Furthermore, Family, friends, co-workers can besides pull strings or carry the buying determination procedure. Ability: Cost is the chief factor that drives the client to take to go utilizing LCC air hoses. Customers harmonizing to the relevant market will take to wing on air hoses that provide good quality and low monetary values. Furthermore, size is another factor that will impact the ability to purchase in two ways. First, the size of the aeroplanes will impact rider s comfort in long distance flights. Second, size of the airdrome will play a major function because some clients do non like the fact of walking excessively much. For this ground, Dubai Airport provided more services to riders to do them experience comfort while they are in the airdrome which will profit LCC air hoses such as ; Flydubai. Selective Demand We can specify the consumer determination doing procedure as an extended job work outing degree, where they are introduced to a complete new trade name with low trade name cognition. So, Flydubai should infusive more on their trade name individuality through the media and other communicating types in order to enrich consumer s cognition. Once Flydubai had increased the degree of consumer cognition, we expect immense addition in market portion in the following three old ages because the determination devising procedure is traveling to switch from extended job work outing to routine which is low information hunt about the company. Therefore, we expect major alteration within the following three twelvemonth upon the factors we mentioned above. Therefore, to do consumers alter their influence toward our trade name we should concentrate on the undermentioned properties. Properties: Properties are what clients perceived about certain trade name. Our trade name merely launched this twelvemonth ( 2009 ) . Therefore, to enrich Flydubai trade name in client s perceptual experience, we should pay attending to the undermentioned points: Handiness Scheduling Terminal Land services Monetary value Repute Appendix 5 Cleavage The intent of sectioning clients into different groups is to place their different traits and features, so as to recognize demand for new merchandises and increase profitableness ( as Nicholas Ashill had mentioned in a talk ) . For sectioning flydubai clients we need to sort them based on four factors. Each has some constituents that must find. Geographic Segmentation ( population denseness and population growing ) The mark market of flydubai resides in the UAE, particularly in the Emirate of Dubai. Harmonizing to the electronic portal of Gulf News ( a taking English linguistic communication News Paper circulated in the Emirates ) , the population of the UAE is nearing six million presently. In add-on, people shacking in some major metropoliss to which flydubai operates in such as ; Beirut, Amman, Aleppo, Doha, Alexandria, Damascus and Djibouti besides form a major ball of the mark market. Each metropolis mentioned above has huge potency for growing. Demographic cleavage ( business, income and household position ) The mark market largely comprises of business communities and/or employees of companies runing in the Emirates that are frequent travellers to one of the eight finishs. Their degree of income may non be really high. In simple footings, they can be categorized as people belonging to the middle-low to middle income classs. Their grounds for going may be sing household or to take a short trip related to work ( willingness to go will be high ) . Furthermore, clients can besides be pupils that are remaining in the UAE for educational intents and would desire to go back to their hometown whenever there are vacations. Psychographic cleavage ( attitudes and life manner ) The mark market of flydubai may non be taking epicurean life styles ; in fact, they can be classified as people belonging to the middle-low to middle category bracket. They are normally easy traveling people ; they do non hold several demands and easy set with state of affairss. Their demand is merely to acquire from one topographic point to another without being treated specially or in a epicurean mode. However, these people carry a complex set of cultural values which means they give extreme importance to factors such as programming and promptness of flights. Behavioral cleavage ( usage rate, monetary value sensitiveness and benefit sought ) The mark market of flydubai would wish to hold the most convenient journey without holding to pass a immense sum of money on tickets. They are extremely monetary value sensitive and see the benefit by going with us. Overall, we our mark clients are frequent travellers ; they could be business communities, employees, pupils or those who want to return to their hometowns to run into their households. Our mark clients reside in all the eight finishs which show a high potency for growing in the close hereafter. The mark clients fall in the middle-low to middle category bracket ; they portion assorted factors such as income degrees, disbursement forms and life styles. They wish to have the most convenient services at the lowest monetary values possible ( extremely monetary value medium ) . Therefore, by placing the features of our clients we realize the demand for the service needed. Analyzing and understanding the features of our clients will assist us in understanding their demands which would ensue in higher gross revenues and net incomes.