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  MARKET CHARACTERISTICS In general, an industry’s attractiveness can be observed through numerous factors. The most significant factors are the market size, market growth and the market share. Market size is considered to be one of the most important factors in determining how attractive an industry is. The size can be defined as the total number of buyers and sellers in a particular market. The larger the market, the higher the competition. The airline industry in Malaysia have been the backbone of the country in maintaining a global economy as they play crucial roles in supporting government and businesses who depend on commerce. The industry’s size varies from small companies with single plane to huge multinational ones with many planes. Malaysia’s airline industry is not limited to domestic services only but also provides services internationally due to higher demands from the citizens (Ministry of Transport, 2013). Besides that, market growth is another important aspect that reflects the attractiveness of an industry. In Malaysia, airline industry has been growing sturdily as the result of increase in number of passengers both domestically and internationally (Market, 2014). The main reason would be the higher investments made in developing the airport network. In foster years, results have showed steady growth of 6 percent per annum for airline industry in Malaysia. One of the key successes of the growth is the marketing strategies. The airline industry’s growth is boosted mainly through advertisement, sales promotion and publicity. Apart from that, maintenance, repair and overhaul industry (MRO) is playing an essential role in helping the airline industry to grow globally. Since Malaysia is one of the leading countries with well-known MRO services, government have planned to acquire maximum number of shares in the MRO industry which will eventually contribute to the higher growth of airline industry as it is a part of government’s initiatives to increase human capital in highly potential sectors including airline sector under Economic Transformation Programme (The Malaysian Reserve, 2013). On the other hand, market share is another great tool to measure the level of competitiveness of an  industry which is highly associated with the market growth of the industry (Times Internet Limited, 2014). As a whole, airline industry in Malaysia has positive and potential strong growth but its market share is hugely affected due to the loss reported as a result of price war occurred due to entrance of new airline force namely Malindo(Borneo Post, 2014). In 2012, the airline industry performed very poorly mainly due to the unspecified government regulations and rise in fuel prices. Apparently in 2013, profit was improved and there is a growth of 6 percent in the share prices due to economies of scale and initiatives taken to reduce the cost. The major airlines have basically reduced the fares in order to gain market shares (Maybank IB Research, 2013).  REFERENCES Borneo Post, 2014. A look at the aviation industry.  Borneo Post Online , [online] 8 March. Available at: <>[ Accessed 6 November 2014]. Market, 2014. Malaysia Aviation Industry Report.  [online] Available at: < > [Accessed 6 November 2014]. Maybank IB Research, 2013.  Aviation: Cautiously Optimistic.  [pdf] Maybank IB Research. Available at: <  > [Accessed 6 November 2014]. Ministry of Transport, 2013. Malaysia: A vital hub in the Asia Pacific region.  [pdf] Ministry of Transport. Available at: <  > [Accessed 7 November 2014]. Times Internet Limited, 2014. Market Share. The Economic Times,  [online] Available at: < > [Accessed 7 November 2014].  The Malaysian Reserve, 2013.  MRO industry gearing for rapid global growth . [online] Available at: < > [Accessed 6 November 2014].

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Jul 23, 2017


Jul 23, 2017
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