1. Consider the microenvironment of the airline industry. Using Figure 3.1, identify the main companies and other organizations forming the microenvironment. The microenvironment refers to the factors that impact the organization's ability to serve its customers. In the airline industry, the microenvironment can be said to be: • Suppliers: The transportation industry needs vehicles to serve its customers, which is why Boeing and Airbus, an aerospace company, are the major suppliers to air transportation. In addition, meal service is one of its services provided on almost all flights. In-flight catering companies, as well as suppliers in this sector. • Business: Business needs a proper decision to operate effectively. Internal organization such as finance department, accounting department, marketing department, etc., influences the strength and weakness of the company. Every company focuses differently on a different market. Qantas Group has instead shifted its domestic flights to a low-cost airline subsidiary, Jetstar, and cut some flights to reduce capacity and generate more profits amid an economic slowdown, while Singapore airlines worry of its high-end market. (Geoffrey 2010, p43)• Competitors: Company that offers the same thing to the same group of customers, which in this case may be another airline or another means of transportation, such as a train, bus or cruiser. • Marketing intermediaries: Instead of promoting themselves, ticket and travel agencies, are an opportunity for the transportation industry to achieve more sales and, in globalization, they effectively provide services through the Internet, the telephone and also branches. Customers simply access agencies that provide one-stop services. • Customers: Air transportation customers are consumer markets and international markets, such as tourists, students and businessmen....... middle of paper ...... business interested in increase thefts in this area. So, companies that have services in Asia have to make more efforts to attract customers fearing to offer them cheaper prices.4. Why do those who pay more for air travel perceive value, when it is clear that many other people perceive value when using a low-cost airline? Price is not only a factor in choosing this type of service. The airline industry depends on many factors such as customer type, travel duration, in-flight service and facilities. In the case of a long-distance flight, the customer would rather like to have a comfortable and wide seat, more legroom, a good meal, enough personal entertainment and prefers to pay more for this. In addition, other practical things provided such as online check-in, collecting miles to become a top member with privilege option or after-flight service..