Opportunity Analysis for Tiger Air Airlines Australia Author SID 7003MKT_ Marketing Foundations Convenor:   Table ofContents 1.0 Introduction and Background information…………………....3 1.1 Introduction 3 1.2 Company Background 3 2.0 Situational Analysis 3 2.1 Market Analysis 3 2.2 Macro Environment Analysis 4 2.3 Micro Environment Analysis 5 2.3.1 Company Analysis 5 2.3.2 Competitor Analysis 5 2.3.3 Consumer Analysis 6 2.3.4 SWOT analysis 7 3.0 Objectives 7 Marketing Objectives 7 4.0Referenec list 9   1.0 Introduction and Background information 1.1 Introduction A well-blended combination of all the internal (micro factors) and external (Macro factors) and all the other related constituents which are considered as significant one for executing the functionalities and operational activities within the organizational structure of the business corporation (Faterross. 2017). Business environment also comprise of all the ingredients which play a vital role in influencing and also have impacts on the company’s functions and working nature. The business environment can include of the consumers, the clients, suppliers, the owners and the rivals and also the technological up-gradations in the markets, the changes in the laws, government activitiesand political influences, social and economic trends(Babatunde & Adebisi, 2012). These all factors play a vital role in influencing the business environment and which directly or indirectly gets reflected in the outcomes, productivity, brand equity and goodwill of the business entity. The present report has been analysed an focused on the business environment of Tiger Air Airline which is a well-established brand name in the airlines sector from Australia. The below presented report has been focused on the business environment of the above-mentioned airlines company. Situational analysis will be carried out for determining the internal and external factors of the business environment and further SWOT analysis will be carried out for the same so as identify the strengths and the weaknesses of the business organization. 1.2 Company Background The below presented report will be focusing on the business environment and the significant factors and the components which are essentially significant for the business organization. Tiger Air Airlines Australia Pty Ltd which is operating its business as Tiger air Airlines Australia, which is a low budget airline (myaccount.news. 2016). The business commencement of the organization in the Australian domestic airlines market was done on 23rd November 2007 as Tigerair Airways Australia. The company is fully owned and subsidiary of virgin Australia Holding. The airlines have its headquarters at Melbourne, Victoria with its main base settled at the Melbourne airport. The policy and the legislation imposed by the Australian government permitted that airlines that are 100% foreign owned should operate the business as domestic airlines within the economy (theaustralian. 2017). But the said amendments were applied only to New Zealand owned airlines in the year 1996 but later a relaxation was provided as establishment was made Virgin Australia. Later in March 2007 approval was provided by the Australian Foreign Investment Review Boardfor establishing its wholly owned Australian subsidiary. 2.0 Situational Analysis 2.1 Market Analysis Market analysis is an assessment which allows in the determination of the suitability of a particular market for the business organization (Bhasin. 2016). The below done is the market analysis for the Tigerair Airlines in Australia: Market Size: It has been reported by the budget airline’s owner Virgin Australia that Tigerair has earnings of $2.2 million in 2015/16 which is a rise as compared to the loss of $37 in the previous years (myaccount.news. 2016). History of market: The business commencement of the organization in the Australian domestic airlines market was done on 23rd November 2007 as Tigerair Airways Australia. The company is fully owned and subsidiary of virgin Australia Holding. On 7th March 2012 reopening of second base at Sydney Airport was announced by the corporation and resuming flights of Melbourne to Adelaide was done on 4th September 2012. On 17th October 2014, the purchase of the remaining 40% stake in the airline for A-$1 and thereby taking full ownership will be done by Virgin Australia Holdings. Industry and competition: The announcement made by Tigerairof the plan to establish the headquarters in in Melbourne. In mid-2007 was a big shake. In 2007 for the Australian Airline Industry, they also announced about the flights from Singapore to Perth and Darwin. Tigerair came-up as a threat for the traditional full service airlines and as the full-service airlines are incapable of competing of the low budget airlines as if option provided the consumers will choose. The low cost over all otheramenities. Some of the routes flown of Tigerairare also flown by some established airlines. 2.2 Macro Environment Analysis Political: According to the research and the surveys the political environment of Australiahas been quite stable and which has aidedmany industries to grow and develop in the market.As per the observations the political stability and less or no interference of the governing bodies helped Tigerair to keep the prices low and the trust of the factor in check (Robinson & et al, 2016). And hence this component has provided Tigerair with a number of benefits. Economic: On the basis of the surveys carried out andit has been found that Australian economy has been in a stable position from the last few decades and is an advantageous economy with a per capita GDP on par with the four dominant West European countries. The players within the market will be able to play with the prices if the economy is financially good and sound. For instance, if the inflation rate in an economy is stable then the business corporations can easily maintain the cost-effective pricing system which will be proven beneficial for both, the organizations and also to the consumers. But in cases of financial crisis it will be proven harmful and also will be difficult for the maintenance of the cost-effective price. Social: Australia has a very much diversification found in regions, caste an ethnicity. Also, the economy has a very sound, intellectual and mature crowd with a great literacy rate and which proves that the economy has an informed public. This factor has two sides of both advantages and disadvantages (Rothaermel, 2015). The positive side of this factor is that is the consumers are aware of making comparison hence they will opt. Tigerair with the benefits provided such as the good service and low rates but then also this should be noted by the company that the consumers are always in search of better and better product and services in the market. Technological: It has been understood that the business corporations require continuous improvement which is one of the most essential factor or the component and which is required for survival in the market. The company should keep on updating it organizational structure and the working environment as per the changing trends in the market. Legal: The basic pillars of Australian legal system artist is mainly Cost effectiveness fundamental belief in the rule of law and justice, and independence of the judiciary. These pillars play a significant role in influencing and also have a great impact on the business corporations within the economy. Cost effectiveness system in any of the organization tends minimize or lower down the wages of the employees and this is due to the low-cost prices of the product means the manufacturing cost for that particular service or product is considerably lower and good wages is a good indicator for employee retention hence this has come-up as a challenge in-front of Tigerair. Environment: Environment is one of the most significant constituent which will aid the business corporation in the growth and development of brand equity and goodwill. So the company should take into consideration the environment and also degradation of the same by the emission of pollutants and carbon should be minimized (Kankae, &Nok, 2015).Tigerair should take adequate steps to control its carbon print on the earth. 2.3 Micro Environment Analysis 2.3.1 Company Analysis Positives • The first most positive point of Tigerair is that the business corporation is from one of the leading airline companies which provide the best quality of services with a comfortable journey that to in a low budget. The success of Tiger Airways is due to its close adherence to the proven low cost carrier business model patterned from Ryanair (Research-topics.blogspot.in. 2013). • The company adds three new services and 6800 seats to the network per week and which has made Bali one of the most popular destination for Australians and to which more access has been provided by these new flights. • The company has made changes and brought new bites to the menu which is provided during the journey. Negatives • As the Tigerair is low cost and low budget Airlines Company it does not have great reputation for reliability. This is one of the biggest negative point of the corporation (Grant, 2016). • Refunds are the biggest objections among the Tigerair passengers, even if the company has clearly stated the No refund policy in its terms and conditions. • Some of the travellers have a complaint that they have to lower down their standards for travelling, for instance to fly from Melbourne to Hobart for $39, Brisbane to Sydney for $75 or Adelaide to Melbourne for $65 (Chand. 2017), Summary of Company Tiger Air Airlines Australia Pty Ltd which is operating its business as Tigerair Australia, which is a low budget airline (myaccount.news. 2016). The business commencement of the organization in the Australian domestic airlines market was done on 23rd November 2007 as Tigerair Airways Australia. The company is fully owned and subsidiary of virgin Australia Holding. The airlines have its headquarters at Melbourne, Victoria with its main base settled at the Melbourne airport. 2.3.2 Competitor Analysis On the basis of the survey carried out it has been found out that Jet-star Group and Air-Asia are the main competitors of Tiger Airways Holdings Limited (Fleisher, &Bensoussan, 2015). And this competitive ground has been developed due to some distinctive similarities which is shared by these corporations. First most is that these business corporations cater a number of flights to many of the Asian destinations and the revenues hence generated contribute a large portion to their annual revenue. Also,these airlines have developed their business models which revolves around being the cost leader in the industry and they also strive to deliver a set of competitive prices to the travelers (Cleverism. 2017). Key Players It is evaluated that Australian airline industry has 58 business player according to the data of 2016 (Ibisworld, 2016). The main direct competitors of the Tigerair ariline are those who provides the all airline services including domestic airline services. Some of them are Jetstar airways, Air north, Air Asia. Qantas Airways( Amazing -Australia, 2017). From above it is noticed that there are lot of competitors who are influenced by the competitive market nature of Tigerair airways. Competitive market summary Competitor Target Market Positioning Product Price Promotional Distribution Strength/ Weakness Jetstar Domestic and international air travellers Low service quality Airlines services Low budget ticketing Social media,e-mails and print media Online ticketing and physical agencies are also available Main Strength:- top airline service subsidiary Weakness:- No premium facility Air-asia Primary and international travellers High service quality Guest convenience and ticketless services Economy and business class/high fares Air asia big loyalty programs and famous flight attendants Internet booking, reservation and sales offices Main Strength: Strong promoter and well established LCC operating 2.3.3 Consumer Analysis As it has been already mentioned that due to the low budget strategy Tigerair has attained and attracted a major and significant portion of loyal consumers from r the air travelling domestic as well as from business and international personals for air travelling on inexpensive rates (Research-topics.blogspot.in. 2013). There are no specific age customersbut the business corporation includes individuals from various backgrounds and also of different ages who are looking to travel at an affordable rate. It is a great achievement by a business organization to have a great market a consumer base with a diverse consumer background. But maintaining the consumers at a cheap rate can be easily diverted by any other airline if they are providing low rates a better facility in comparison. 2.3.4 SWOT analysis Strength • Tigerair Airlines has developed sufficiently expertise in meeting the requirements of low budget ticketing services for the price sensitive consumers and also simultaneously thinking about the profitability of the business corporation. • The company has an objective of developing a profitable portfolio of routes to capitalize on the development and growth rate in Asia and Australia which in-turn will aid in enhancing the tourism sector. • Also, establishing a dominating position in the low budget market and segment of Singapore (Awais, &Samin, 2012). Weaknesses • Civil Aviation Safety Authority (CASA) imposed the decision to ground all flights which has severely affected the brand reputation of the entity. • Also, the intensity of competition has increased to a great extent and which has made the market share limited and also lowered the margins. Opportunities • The uncertainty in the state of the economy will tend to bring a reduction in the spending habits of the consumers and also there will be decrease in the revenues received from the tourism industry which will present ways opportunity for the low budget airlines such as TigerairAirways (mbaskool. 2017). • As expected with an increase in the GDP within Asia will tend to result in stringer and better growth and developments in tourism and travel within airlines industry. • Also, the growing usage of internet in the developing economies such as Asia will surely aid and increase the reach of Tigerair Air to the targeted consumers and that also without incurring any kind of additional expenses. Threats • The biggest threat for Tigerair Airways will be the rise in the price of oil and this is due to the nature of the business as most of the operational expenses are considered under the fuel costs. • There is always a threat for the business corporation of heavily scrutinizing of the business operations by the other aviation authorities. • Also, the rivalry in the industry has been intensified to a great extent. 3.0 Objectives Marketing Objectives Marketing objectives are concerned with the goals and the targets which are set by the marketing and the management team to increase the productivity and the potential of the business organization. SMART objectives are a contemporary type of approach which can be used by the corporation which is mentioned as below: Specific: The Company should be precise about the targets and the plans for the future. For instance, sales ration should be increased by a specific percentage. Measurable: For the determination of success the company needs to have milestones and plans to be measured. For example, by increasing a specific number of units as compared to the previous year. Achievable: The planned goals and targets should be achievable. The goals should be realistic and easy to achieve. Realistic: The business corporation should have the set of appropriate resources and they should be realistic so as to achieve the marketing objectives. Timed: A deadline should be set so as to achieve the targets and the planned marketing objectives. 4.0 Reference List Amazing-australia,. (2017). Domestic Flights. Amazing-australia.com. Retrieved 10 April 2017, from http://www.amazing-australia.com/index.php?option=com_content&view=article&id=83&Itemid=365&lang=en Awais, M., &Samin, T. (2012).Advanced SWOT Analysis of E-commerce. International Journal of Computer Science Issues, 9(2). Babatunde, B. O., &Adebisi, A. O. 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Business and competitive analysis: effective application of new and classic methods. FT Press. Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Ibisworld,. (2016). Domestic Airlines in Australia Market Research | IBISWorld. Ibisworld.com.au. 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