It is a subsidiary of the US Airways Group with its headquarters in Temple, Arizona. The airline company operates both domestically and internationally. Being one of the biggest names, it would obviously want to explore the Asian markets. However, the major determining factor in this regard would be the pricing of fuel in the coming fiscal year, the economic scenario and the state of the aviation fleet. Interestingly, the company had already received permission from the sovereign authority to fly from Philadelphia to China back in 2008. However, due to the global economic slowdown, the project got delayed. This paper aims to understand the impact of the business environment of China on the expansion of US Airways and the possible marketing strategies to be adopted.
Under the leadership of MAO Zedong, China had developed as a socialist state. However since 1978, under the leadership of DENG Xiaoping and with a favorable attitude towards globalization, a pro-market economic structure had materialized with a positive outcome through an increased GDP (“East & Southeast Asia: China”).
The majority of the population is Buddhist with Christians and Muslims forming the minority. Chinese population is equally distributed between the urban and rural areas such that only 50% of the population lives in the urban areas with the rate of urbanization hovering around a mere 2% (“East & Southeast Asia: China”). Occupationally, majority of the population are engaged in the agricultural sector (around 50%), even though agriculture makes a relatively lesser contribution in GDP, while the shares in the industry and services sector stand around 22% and 28% respectively (Yoo 187). Level of education Figure 2: Education level in China Source: (“East & Southeast Asia: China”) Mobility In the wake of the pro-market reforms and globalization, China’s occupational mobility is undergoing paradigm shifts (“Occupational Mobility and Migration in China”). This is causing a rapid change in the age-old social division, according to occupational nature. Due to the increasing unemployment and large lay-offs by government and private enterprises, the masses are increasingly migrating to the urban areas in search of employment. Both the mobility between jobs and places has increased on this account. This will be an added advantage for US Airways. Transportation The traditional form of transportation in China revolves around the railways. However, roadways, airports and waterways also comprise the other forms of transportation. The total area covered by the roads is 4,106,387 km with a paved length of 3,453,890 km and unpaved length of