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Consider the macroenviornment facing a large, international airline headquartered in US (American or United Airlines) give 2 examples of of important trends or events from each of 5 segments of airlines macroenviornment ( macroeconomic, technological, demographic, social and legal/political tell if each represent a threat or opportunity to firm

Economics Dec 12, 2020

Consider the macroenviornment facing a large, international airline headquartered in US (American or United Airlines) give 2 examples of of important trends or events from each of 5 segments of airlines macroenviornment ( macroeconomic, technological, demographic, social and legal/political tell if each represent a threat or opportunity to firm.)

Expert Solution

Technology.

The company also uses technological trends to enhance their business and create opportunities. For instance, they can use artificial intelligence to make a chatbox, which improves customers' experience in flight. The company can adopt 5G technology to enhance connectivity in the airport hence attracting more customers.

>Demographics.

The demographic environment measures the behavior exhibited by the population over time. With an increase in population, passengers are often using the airline to travel for family or tourism purposes. Secondly, with the high education levels, the airline can employ the most competent personnel hence the effective utilization of products.

>Social trends

With emerging social trends, the company can expand its space to house the increasing demand by passengers. More customers translate to profits for the business. Secondly, the company can improve its operational capabilities creating substantial opportunities.

>Legal trends

Negative legal trends have caused significant threats to the airline industry. For instance, the tax policy reduces the profits gained by the airline immensely. Secondly, restriction due to international trade has been a great huddle to the business operation.

>Macro-economic trends

American Airlines faces significant trends in macroeconomics, which cause numerous threats. For instance, an increased rate of inflation in the economy creates a considerable shortcoming in its operation. Secondly, the high unemployment rate poses a substantial threat as a customer cannot afford to travel regularly.

 

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