The paper "HK Express General External Environment" is a great example of a business case study. HK Express is a low-cost airline carrier (LCC) in Hong Kong. The airline mainly focuses on low fares and effectiveness in on-time reliability. In addition to its first flight that took place in October 2013, the airline has created a number of additional destinations on its operations. Currently, HK Express operates to destinations in the region of Asia including Japan, China, Taiwan, Thailand, Cambodia, Korea, and Vietnam. At the moment, HK Express operates several modern Airbus A320.
Due to an increase in the list of destinations, the airline is set to further growth in the number of the fleet with plans to an estimated thirty Airbus A320 by 2018. HK Express faces strategic issues of competition, socio-cultural practices, managerial implications, and dual-branding with its sister carrier Hong Kong Airline. The operation of HK Express as only Hong Kong’ s LCC has granted it a greater opportunity of having a bigger impact on market and travel stimulation. HK Express has received a positive market entrance which makes it more competitive and visible.
As explained by (Park, 2015), HK Express faces a great challenge of competition from full-service carriers such as Cathay, Dragonair, and Hong Kong Airline. As low fare offered by HK Express tends to attract many guests, some customers have the perception of low-quality services. More often than not, cases, the price is comparative to quality hence the assumption will make some customers opt for full-service carriers as proposed to HK Express. HK Express’ general external environment General external environments such as economic, political, sociological, demographic, socio-cultural, global, and technological influence the business activities of HK Express by creating opportunities and threats.
The opportunities enable HK Express to enter into the world markets and secondly, use appropriate technology. The threat includes regulations on its operation in the global market as suggested by (Samarrokhi, 2014). Economic factors such as GDP value, interest rates, inflation rates, and monetary policies need monitoring to compare with economic factors facing HK Express’ competitors to define indications of changes in market competitiveness. Factors such as a change in political levels, political stability, and change in government policies and regulations all define the political environment surrounding HK Express.
Political environment affects business activities of HK Express in various ways. For example, any terrorist attack in any destination of HK Express will cause a large impact on its flight activities. In a social environment, variables such as population, demographic changes, and customers’ values affect the type of products and services offered by HK Express. Different countries have diverse cultural practices. The practices influence consumer tastes and preferences. Change in values of the culture will affect the goods and services in the market and determine which kind of commodity or service to be delivered to the specific market.
Technological changes in the fields of electronic commerce, internet development, and information technology have created a significant impact on HK Express service delivery. It influences all business operation information and communication, products innovation, and production process. Technology speeds up operations in cargo handling and clearing. As such, creates effectiveness in information handling in HK Express.