International Marketing Strategy of Norwegian Air Shuttle

This report analyzes the international marketing strategy of Norwegian Air Shuttle (NAS), evaluating its ability to sustain in the current market. The report employs a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing NAS. Political factors, such as open skies agreements, and economic factors, like tourism and fuel prices, are discussed. Social factors, including the shift towards low-cost carriers, and technological advancements like e-commerce and online booking systems, are also considered. Legal factors, including deregulation, and environmental factors, such as carbon emissions and noise pollution, are addressed. The analysis highlights how these factors have contributed to NAS's market competence and sustainability. The report references various sources to support its findings. This report is available on Desklib, a platform providing past papers and solved assignments for students.

Running Head: International Marketing Strategy
International Marketing Strategy

International Marketing Strategy 1
Contents
Introduction.................................................................................................................................................2
PESTLE Analysis...........................................................................................................................................2
Conclusion...................................................................................................................................................4
References...................................................................................................................................................5

International Marketing Strategy 2
Introduction
The purpose of this task is to evaluate the competence of Norwegian Air Shuttle Company to
sustain in the current target market. It evaluates the activities of the company by using the
PESTLE analysis. PESTLE analysis evaluates the political, economic, social, technological,
legal and environment which affects the working of the organization. Further details about the
task are discussed below.
PESTLE Analysis
Political Factors: the open skies agreement has improved the relations between the countries
worldwide and this factor could affect the activities of NAS. These are the bilateral or
multilateral agreements between countries which ensure handling of the dispute with solidarity
and the safety of both the parties. The agreement helps the organization to partner with foreign
companies and create new routes as well. This shall help NAS to expand the working base due to
which revenue of the country may also increase [1].
Economic Factors: there are many factors present in the economy which helps NAS to grow
and gain better efficiency. The air industry is known to be cyclic as it shifts from the time period
of high growth rate to the periods of low or minimum rates. Many times the industry faces
negative experience, but due to effective growth in tourism sector, the growth process in NAS
also developed. Apart from that talking about the fuel prices it shall be noted that low jet fuel
cost helps the low-cost carriers like NAS to grow effectively in the target market. As this
company provides services at a low cost resulting to which the customers gets attracted to travel
with LCC NAS only [5].

International Marketing Strategy 3
Social Factors: talking about the social factors it shall be noted that the social factors assisted
the growth of NAS due to which they gained the efficiency to sustain in the target market. It
shall be noted that earlier the customer present in the market used to prefer the legacy carriers for
the traveling purpose but now the interest of the customers in the market has shifted to travel
LCC (Low cost carrier) companies [2]. NAS being LCC received the benefit of the shift in the
consumer pattern.
Technological factors: the technological factor which highly influenced the activities of the
organization is the introduction of e-commerce business in the market. As the e-commerce
business started evolving due to which the expansion of the industry also increased, apart from
the NAS also designed their online portal through which people can book their airline travel
tickets. And the company also uses hi-tech techniques in their check in and check out process.
Innovative tools are used by the organization to check the luggage etc. of the customers. The
technology also helps the customers to compare different flight price, and then travel with the
company according to their budget [3].
Legal Factors: the legal framework of Norwegian Air Shuttle outlines the degree of interference
and initiation of new regulations which the government of the country implemented in
accordance to change the policy in such a way that it affects the working of the organization. The
airline's industry has many domestic government regulations separately in different parts of the
world. Since global deregulation was initialized by US government, the company enjoyed
liberation in their measures. The fact is known that the organization NAS received heavy
regulation worldwide due to which deregulation helped the organization to gain more revenue
from the people [6]. Although the measures were amended the surveillance of government was
not decreased on the activities of the organization.

International Marketing Strategy 4
Environmental Factors: the environmental factor shall also be considered while looking for the
growth and sustainability of the organization in the target market. Without sustainably using
natural resources, no organization can achieve their assumed target, thus it shall be noted that the
non-renewable resources shall be used in a sustainable manner so that they are saved for the
future generation.
The airline industry emits a large amount of carbon dioxide, due to which all companies shall
aim to minimize the emission of hazardous gases. And it also produces noise pollution, so
looking at the activities of Norwegian Air Shuttle Company it is seen that the company aims to
initiate sustainable growth by adequately complying with the corporate social responsibilities [4].
Conclusion
Thus in the limelight of above mentioned events, the facts that gained importance is that the
Norwegian Air Shuttle Company developed the ability to sustain in the current target market due
to the above mentioned factors. The social and economic factors assisted the company to achieve
competence in the current market.

International Marketing Strategy 5
References
1. Norwegian.Com. “Strategic analysis and evaluation of Norwegian Air Shuttle ASA”.
Copenhagen Business School, September 2011.
2. Which Airlines. “Norwegian Air Shuttle Info”. Viewed on October 26, 2017 from <
http://www.whichairline.com/airlines/norwegian-air-shuttle>
3. G. Christian. “Internationalization strategies for services: a retrospective”. Journal of
Services Marketing, 30(2), 129-132.
4. Norwegian.Com. “Corporate structure”. Viewed on October 26, 2017 from
https://www.norwegian.com/uk/about/company/corporate-structure/
5. G. J. Gannage, and T. M. Burton. "A Study On The Effects Of New Media Marketing
Strategies On Airlines Industry Working Paper." (2016).
6. Olsen, K. “Norwegian Air Shuttle” Viewed on October 26, 2017 from <
https://www.crunchbase.com/organization/norwegian-air-shuttle>