Norwegian Air Shuttle (NAS) are the 6th largest low cost carrier in the worldwith around 7000 dedicated colleagues. Their customers can choose fromover 500 routes to more than 150 destinations in Europe, North Africa, MiddleEast, Thailand and the US (Norwegian, 2017).They were founded in 1993 and in 2002 they started to work in bigger scalemarket. Today they are one of world’s fastest growing airlines. They havearound 130 aircraft and are one of the world’s youngest and greenest fleetswith an average age of just 3.6 years. New aircraft is a win-win for thecustomers, the environment and the company’s costs and is key in order tomaintain our vision of offering affordable fares for all (Norwegian, 2017).Their vision is “Affordable fares for all”, and for this vision they offer qualityflights at a low fare based on operational excellence and helpful, friendlyservice (Norwegian, 2017).Marketing segment which NAS targets is leisure travelers and businessmen,the target group is middle class and upper middle class. They operates 450routes with atleast 150 destinations in Europe, Africa, Asia and US. Around7000 people work in NAS. NAS has different market share in different regionsas in 2016 it includes (Statistics, 2017):? Oslo Airport 41.5%? Stockholm Airport 21%? Copenhagen Airport 17%? International Gatwick Airport 10%NAS focuses on Business to consumer marketing. They focus to promote theirgoods and services to consumers. Technology has helped to get better gripon B2C market and can be connected through campaigns.3Question 2Mostly consumer think that airlines companies are full of luxury and comfort.But these airline firms are part of cycle of higher operating cost, profits whichcan be affected by many macro/micro factors.Porters 5 forces model identifies and analyzes 5 competitive forces that shapeevery industry and helps firms such as NAS strengths and weakness(Investopedia, 2017).5 forces are (Investopedia, 2017):1. Competition in the industryThis force focuses on the number of competitors in the market and theirposition as a threat to the company. The bigger the competitorscompanies are, with their variety of goods/services the more power overmarket they have. The biggest competitor for NAS are SAS(Scandinavian Airlines) who are in same market as them and oftenpassengers if they don’t find reasonable tickets at NAS they straight goto SAS website to buy tickets.2. Potential of new entrants into the industryIf market is successful, so new companies will enter in the market. Thisforce shows that new incoming companies can have affect on acompany power. It doesn’t take much time and money to enter in newcompetition market so it can make company position weakened if newcompany is being successful in the market. New airlines are trying toenter in market and NAS will be affected because if passengers findmuch better prices from there it can reduce in demand of tickets.3. Power of suppliersThis forces shows that how can suppliers manipulate the price of goodsand services. It is affected by how many suppliers does firm has andhow much would it cost to change the supplier. If there are lesssuppliers so more firm depends on them and more power they hold. ForNAS there would be labor unions and aircraft manufacturers who canhave affect on the prices.44. Power of customersCustomers has ability to have shift in prices, it is affected by the numberof buyers/customers (demand). It shows that each customer isimportant for firm and how much can cost firm if they move to from onecompany to another.For NAS there are 2 type of customers, Business travelers and leisuretravelers.Business Travelers have to travel frequently and often book tickets atlast minute, so they are valuable to NAS. However they are concernedwith the service provided and flexibility. They can get discounts on longterm bases, but that contract is made between firms and NAS. And theyare higher switching cost.Leisure travelers are low switching costs andare more price sensitive. We all try to first find cheaper tickets whiletraveling so if there is sudden increase in prices we will wait bit longerfor price of ticket to decrease.5. Threat of substitute productSubstitute goods and service can heavily affect the price and demand ofa goods. Consumer may start consuming competitor substitute goodsinstead of company’s goods will pose threat. Forexample for domestic ifNAS is expensive consumers might prefer trains which could becheaper. Sometimes NSB(local train in Norway) are cheaper than NASso passengers will prefer to use trains.PESTLE methodology to analyze the current state:? Political factorsNAS success depends mostly on the regulations of all markets in whichthey are operating. Especially taxes, subsidy and market regulationpolicy has effects on profits.? Environmental FactorsToday, airplanes account for around 2% of global CO2 emissions butthere has been change in this figure so in developed countries emitsaround 6%(Clark, 2010). Many customers nowadays preferenvironmentally friendly firm and have keeping eye on firm damagingenvironment. This has let airline to adopt green flying and be moreconcerned related environment.5? Social FactorsTraveling during holidays is getting common around the globe. Throughsocial media people are getting aware of different tourist places anddemand for travelling during holidays is high. Due to increasing oftourism, people are flying much more and even NAS has direct flightfrom Oslo to New York because of high demand from Norwegian peopleto visit USA.? Technological FactorsTechnology has bigger impact on the airline market. Due to increaseduse of internet, it has made possible for consumer to purchase ticketsfrom home. Even NAS prefer this distribution of channel, that consumercan buy direct tickets from online so it will be much cheaper for people.There is even app for NAS consumer, who can buy tickets, check in,has boarding pass and etc in their mobile phones. Advanced technologyhas helped to upgraded their engines planes which are becomingenvironmentally friendly which produces less CO2.? Legal FactorsNow days we are hearing news about lawsuit against airline companiesfrom customers, for example United airline was sued for trying toremove passenger forcefully from workers. Regulations for transport(airline) also becoming strict nowadays so firms like NAS are actingunder all regulations and making all strategies which does not violateany laws.? Economical FactorAfter 9/11 attack, airline companies had major effect and due to securityreasons travelling through airlines are strict which lead to decrease indemand and supply. Airline industry depends on the economic situation.As domestically Norway is developed country with high employee rateso demand for traveling through, either domestic or internationally, ishigh. However due to increase in oil prices, had increased in costs(variable cost) that led to NAS to adopt different pricing strategy toreduce operational costs. But whenever prices in oil drops (due to moresupply or less demand) it reduces their costs which allows cheap ticketswhich can increase in their revenue.6Question 3SWOT Analysis helps companies (NAS) to do auditing for an organisation andits environment. It is one of first stage before planning and helping marketersto focus on important issues.SWOT analysis of NAS:? StrengthsNAS has good customer focus and good image in front of customer,always takes priority to satisfy customers. Strong grip in the region theyoperates. Already growing in international market, as they have beentrying to make more direct flights from other than Oslo. Provides freewifi from which customers are happy with. Their point system has beeneffective, customers can exchange those points for taxi from airport.? WeaknessesThey don’t have any agreement of alliance with other airline companies.Which makes it difficult for passengers traveling internationally to travelthrough them. I had to travel to Pakistan from Stavanger though Qatarairlines, as they have agreement with SAS I travelled from Stavanger toOslo in SAS, not in NAS, because SAS has alliance with most ofinternational airlines which could affect on NAS sales.? OpportunitiesTo expand even more by establishing new routes for internationaldestinations. Better services to the customers as more customers arebecoming loyal. Could alliance with many international airlines in orderto increase number of customers and increase in their revenue.? ThreatsIncrease in fuel cost which has led to increase in ticket prices sodemand for travelling though NAS affects.Competitors marketingstrategies might improve their airlines image such as SAS which maydecrease NAS brand image. Not having alliance would reduce innumber of customers because they can get better offer from combineairlines ticket then single airline company.74Ps for NSA:? ProductNAS don’t provide free food or drink onboard. Food and drinks are extraincome on board but you can’t bring your food and drinks in NAS plane.They have started providing taxi’s from arrival airport and hotels forcustomers and take little commission. They try their best to keep costminimum so customers can enjoy the price. NAS is in great brands listand sells low cost tickets. They provide free wifi, without logging in,which all of their passengers love it however they need to improve theirinternet speed. NAS have low fares, from which you if can cancel ticketso there aren’t any returns maybe they should return few percentage ofcustomers payment. More than 70% seats are sold at the lowest faresand rest are sold at high fare.? PromotionNAS have been focusing a lot on advertising. During vacation timeperiod they even do sales promotion with giving some discounts andpoints system. Even if some events occurs they will take chance, forexample when Brad Pitt was single so they used this to promote directflights to US:They send emails weekly to their loyal customers about new promotionsand campaign to attract them to travel more from their airline.8? PlacePlace plays very distinctive role in the marketing strategy as NAS hasbeen flying to many countries but its base of the company is in Norway.It carries most of day to day activity in and around Oslo. Their method ofdistribution is approaching their customers directly, they have desks inairports where they help their customers but there are still airportswhere they don’t have desk and are operating. They can have deskstheir to help their customers.? PriceThey have low fare price, which has been attracting customers to buytheir tickets and travel from them. During different seasons they providelimited time period discounts offer and many customers buy ticketduring that time. But they need to adjust even more shorter routes so itcan be low cost routes for customers. As these routes will be lower sothey can gain revenue through number of customers. They could alsoprovide discount for joint flights so more people can travel more thanone destination. For joint flight always their one flights cheaper andother expensive so some people then buys from SAS.NAS has performed efficiently since last decade and has managed to deliverpositive result financially. However they need to improve more because of lowprofitability margin and unexpected events. Especially in countries theyoperate can have uncertain economic environment as Brexit will also haveeffects for flight coming to UK. These recommendations will improve brandimage so more customers would be attractive to NAS because of benefits theywill get. Low fair price already attracts customers but with joint flights (withalliance of another airline) there could be discounts, so the customers theyhave lost wouldn’t go for competitor for better price and will stay with NAS,which will boost their revenue. Having more promotion in countries theirairlines have destinations can increase the awareness so demand for theirairline can increase.