Background analysis AirAsia is an Airline Company established with the objective of providing flight services to everyone. This company has been recorded as one of the best flight service providers in the world and has been receiving recognition awards since 2001. It provides services to over twenty countries hence this company seems to have a quite large market share and servicing the loan will not be a problem to this company. AirAsia Company has also been paving way for cheap aviation through
AirAsia is a global recognizes ASEAN Airline Company. In year 2002, AirAsia become the first low cost carrier (LCC) or airline in Malaysia with the mind set of low fares, cost saving and making fly possible to everyone. AirAsia applies business to consumer (B2C) model by using internet technology to run business. From AirAsia’s website, people can check schedule, fares, and flight details and make payment thru the internet system. Just sign up an account without any member fees require, you may start
AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the management process of strategy and analyse the three levels of strategy by which AirAsia is able to maintain its reputation as the top Low-Cost Carrier (LCC)
Strength The most importance strength of AirAsia airline is their low fares and dense route network in the current economic. Logically further revenue growth in the Asian population has a higher rate of economic growth at the same time. This allows more people to have the ability to fly, mainly in the part of the railway and road infrastructure is very weak Asian region. AirAsia set up in the context of the following conditions: a large population, population density, base, mobility and Internet
Air Asia Strategic Management 1. a) AirAsia’s vision: • To be established as the leading low-cost carrier in the Asian region. AirAsia’s mission: • A low cost airline carrier that offers five-star service with 95% of on-time performance. • To be able to provide affordable airfares, at the same time promoting Malaysian hospitality and the local food. • To focus on customer’s needs by stimulating demand and offers the lowest fares, comprehensive distribution channel and developing various products
Market entry AirAsia can enter to the market like Thailand, Malaysia, Indonesia, Japan, Hong Kong and so on. Those countries are included in the list of destinations that AirAsia offer. AirAsia offers 88 destinations that let the customers to travel along these places. (AirAsia, 2015) Therefore, AirAsia can slowly enter to the market from country to country. AirAsia is mostly travelling to the Asian countries; therefore AirAsia should enter the Asia market with the brand new Auto-inflate lifejacket
Air Asia was originally founded by government on 2nd December in year 2001 and was bought by Tony Fernandes. Air Asia was established in year 1993 and has travel around the world in the hope of ascending to become the worlds best in year 2001. Air Asia continues to increase alternatives for low-cost aviation through tremendous innovation, efficiency and passionate approach to business with a route a network that extent through over 20 countries. Air Asia X, Thai Air Asia, Philippines’ Air Asia Inc
Research was conducted to understand passengers’ views and attitudes towards Low-Cost Carriers and Full-Service airlines. The research was focused on a group of passengers with one crowd using a Low-Cost Carrier and the other using a Full-service airline. The airlines that will be used in the research are Aer Lingus and Ryanair running in a fully developed European market, and Malaysia Airlines and Air Asia currently functioning on a recent developing domestic market in Asia. After conducting the
Executive Summary This report examines the strategic analysis of AirAsia and its ability to sustain it competitive advantage as Asia’s leading low cost carrier (LCC) (Yashodha, 2012). The following pages demonstrate how the diverse business level, corporate level and competitive strategies of AirAsia allowed it to be the organisation that successfully broke through to the under-served market. The following document shows research that exhibits critical theories through using the SWOT, Porters five
understand by most of the target audience. AirAsia has their own missions too. AirAsia’s mission is want to be the best company to work for whereby employees are treated as part of a big family. AirAsia believes that their entire staffs act as contributor for the
Missions is to be the best company to work for whereby employees are care for part of a large family and create a globally recognized ASEAN brand.In addition,to attain the lowest cost so that everyone can fly with Air Asia. Besides that, it is to maintain the highest quality product, embracing technology to reduce cost and enhance service levels. Strategic plan :They are link in new market, principally organization has to revenue United Kingdom, Italy, Canada, Spain and United States. Next, Air Asia
commitment of a business must be demonstrated in order to be labelled as a socially responsible both monetary and nonmonetary factors. For AirAsia, since they begin operation in 2001, they made a promise that “Now everyone can fly”. AirAsia views that corporate responsibility is means being responsible to people who is not their guest but communities
AirAsia airlines: How they apply Blue Ocean Strategy From the article that I have read recently by Rizal Ahmad in Asian Journal of Management Cases, he described the development of Air Asia Malaysia from 2005 to 2008. Within only four years, AirAsia managed to expand its operations into another ten countries. This article also documents Air Asia's marketing strategy and its approach towards 'market development' and 'product development'. The Blue Ocean Strategy concept is used as a tool to examine
products and services are up to par and meet the defining needs of customers. AirAsia offered (product) tangible and (services) intangible good to increase the demand of customer. (AIR ASIA MARKETING PLAN, 2015) For the tangible products such like complementary meals, pillow and blanket, AirAsia credit card. For the intangible goods that includes AirAsia
The Four Characteristics of Services Offered by AirAsia One of the characteristics of service offered by AirAsia is intangibility. Services intangibility is inevitable and sometimes could be a challenge for every service provider. According to Pride & Ferrell (2011) intangibility of services can be defined as the characteristic that the service is not physical and cannot be perceived by the senses. For instance like AirAsia which provides flight services, it is impossible for the customers to touch
For instance, global economic downturn aircraft leasing costs were reduce by about 40%. Creating an environment with lesser competition and enabled AirAsia to lease their aircraft at a cheaper rate and it will leading to cheaper ticket prices for customers. Last several year, economic growth rapidly resulted in a burgeoning middle class within Asia’s large population. Demand for air travel increased
Analysis of AirAsia’s Cost Strategy Influenced by the low cost carrier concept from Southwest Airlines in the United States and Ryan air in Europe, AirAsia began its business and finally it turns out that this concept has worked out. Obviously, AirAsia’s competitive strategy is cost leadership strategy, having the lowest costs in its industry and aimed at broad market. According to the book “Fundamentals of Management”, this strategy can be best exhibited in several dimensions, comprising highly
Numerous of observers claimed that the fruitful of AirAsia due to the Tony’ Fernandes strong leadership qualities in himself. In short, he has demonstrated a good leadership qualities together with strong entrepreneurial skills in handling AirAsia. Moreover, his strong leadership characteristic made him managed to turn AirAsia to become one of the well-known airline brands in the sight of the world. Moreover, according to King (2013), since AirAsia under the supervision of Tony Fernandez, it continues
Nowadays, a great leader plays a very important role in our daily life as a leader will influence his or her followers who intend changes. Apart from that, leader will also share the same purpose with followers in order to achieve the outcome. There are many leaders that we can set them as our role model, such as Steve Jobs and Tan Sri Tony Fernandes. In this era of technology, the name “Steve Jobs” does not sound strange anymore as almost everybody knows who is him. Steve Jobs had made a great move
COST LEADERSHIP STRATEGY DEFINITION: Cost-Leadership strategy is a strategy in which a firm in the market reduces its economic costs, lower than its competitors in the market, to gain competitive advantage over them. The strategy can only work if its different from the strategies that other competitors are using, and it should be as such that it affects them. If the strategy does not affect the competitors, it will be useless. Cost-reduction strategies may include: • Reducing the costs of RnD, sales