Strategic Analysis Of Airasia

2420 Words5 Pages
bulb-icon

Recommended: Airasia product and services

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 forces and the PESTLE analyses’, that the competitive environment of the airline industry can and ultimately has led to AirAsia’s success. Furthermore, there is evidence provided to show the successful growth of the organization, how this was achieved and how it has been maintained to date. In addition, the international strategies that were implemented display the foresight of the airline (Yashodha, 2012). Included in these studies are the external factors that also attributed to the success of AirAsia and the air line industry in general – Liberalisation being one of these key external factors. The study is concluded by showing how all of the factors analysed through the range of internal and external factors can attribute to the rise and fall of an organisation, and how every little aspect can make a huge difference. Introduction AirAsia is a low-cost air carrier providing services to over 100 destinations in 22 counties. AirAsia has taken on the strategy of cost leadership by reducing the cost of operations and passing these savings onto the customers with low ticket prices. After being purchased by Tony Fernandez, the company relaunched as a no-frill airline – promoting budget travelling. After beginning with a couple of ai... ... middle of paper ... ... has the ability to be able to strive on becoming the commuter of choice by building relationships with other brands (Yashodha, 2012). Then, through excelling in this, the organisation would be able to utilise the extra resources and begin to concentrate, train and excel in sales. Then with the success of this, they could branch into HR and employee training across the board. Conclusion It is evident through the research that Air Asia's success is due to its willingness to take risks using innovative strategies to reduce costs while maintaining profitability. The organisation has taken its resources and used them in a way that has really supported and complemented the brand, for example, technology. It has also utilised its surrounding market and environment to be able to adopt new strategies that has allowed them to be cost effective and operationally effective.

Show More
Related

  • Operational Strategies That Management May Use to Respond to Influences on Operations

    1161 Words  | 3 Pages

    One of the many influences that affect Qantas is the presence of globalisation, which has heavily affected the airline both positively and negatively. Globalisation is a process which refers to the increased integration between different countries and economies as well as the increased impact of international influences on all aspects of life and economic activity. Globalisation is responsible for the removal of many trade barriers and the increased level of competition that Qantas has been exposed to. The increased levels of competition has increased consumer sovereignty and forced Qantas to implement strategies to gain a competitive advantage in order to redirect consumers towards their business. Qantas has implemented a cost leadership strategy as a response to globalisation and the influence of cost based competition. One way that Qantas achieved this was by using Globalisation itself to the business’ advantage. Globalisation ha...

    Read More

  • Qantas: Meeting the Needs of Customers Internationally

    1442 Words  | 3 Pages

    ... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.

    Read More

  • Southwest Airline Merger With AirTran

    1448 Words  | 3 Pages

    Another internal challenge for Southwest Airlines is the conflicting management style and business operation with AirTran. On top of that, the external challenges such as the increase of competitions and gas prices are some of issues f...

    Read More

  • Delta Airlines: Porter's Five Forces Model

    382 Words  | 1 Pages

    Many elements of Delta Airlines are described in detail, within this paper. There is a breakdown of the external and internal factors, using external and internal analysis. Porter’s Five forces are used to create the external analysis, and the key factors for Delta are power of buyers, and rivalry. Delta’s competitive advantages are identified as customer service, sustainability, brand image, strong strategic alliances, and corporate travel. Delta’s main issues are the low expansion in international markets, continuous changing of incentive program, and glitches within technology. Delta should expand more into the Chinese and African markets in order to gain market share within the airline industry.

    Read More

  • Analysis of EasyJet's Business Drivers

    832 Words  | 2 Pages

    Easy Jet has gone international to an extent. ”Push” factors within its existing market are primarily the saturation of the Europe market and its strong competition. The statistics show that people travelling by air has increased tremendously over a year (Holloway, 2000). Asia and North African appears to be attractive new markets for EasyJet to expand and exert its influence. EasyJet entered the European airline industry despite the stiff competition. The competitive factors and attractiveness of the European market can be examined further by use of Yip’s driver of internationalization. YIP’s framework suggests that the internationalization of organization is influenced by drivers of globalization which are: market, government, cost and competitive consideration.

    Read More

  • Government Impact On Airline Industry

    1367 Words  | 3 Pages

    Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.

    Read More

  • Boeing/Airbus Case Analysis

    1860 Words  | 4 Pages

    With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces.

    Read More

  • Jetblue Airways: Starting From Scratch - Case Analysis

    1122 Words  | 3 Pages

    JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.

    Read More

  • Airline Sustainable Competitive Advantage

    1432 Words  | 3 Pages

    When an airline does not have a sustainable competitive advantage, it does not have any properties of differences from there competitor and turns to a dangerous price war. The sustainable ...

    Read More

  • Essay On Pestle Analysis Of Air India

    1232 Words  | 3 Pages

    This company became the public limited company in the 1946. The company has international and the local routes and its performance is increasing day by day with the pace of the growth as compare to the other airlines in the industries in the area and the channels in which this airline is working. External factors affecting the Air India Every company in the market has to face the different challenges and try to cope with the challenges to come up with the strong idea to stay and survive in the market. Market is getting tougher and there are different factors which affect the company policies and the strategies which the company is looking to apply. Some factors can be managed by the skills of the companies and can be tackled.

    Read More

  • Asiana Airlines Sustainability Analysis

    1497 Words  | 3 Pages

    Flight fee is one of the biggest nightmares of the passenger. In this regard, such an initiative is a win-win situation for the Asiana airlines. The establishment of extensive cabin retrofits is also a great improvement to the customer service delivery. The airline also boosts customer experience in a bid to achieve the airline’s sustainability through the provision of lie-flat seats. The seats boost comfort for the passengers aboard; hence, reduction of exhaustion. According to Asian Development Bank (2009), the airline provides the passengers with a sizeable monitor, especially for the business class passengers. The practical productivity of team relies on upon its hypothetical planning, information of an aeronautical building, and tenets of its operation, including exceptional circumstances, and propensities for utilization of this learning, furthermore on order and determination of pilot-in-charge of aircraft and group individuals. The administration productivity air movement, the associations of flight action and a wide range of upkeep of aircraft in the greatest degree is controlled by the proficiency of the action association in the modern undertakings, cognizance of initiators, and the moral obligation of leaders of all positions for action concerning security control of

    Read More

  • Airasia Berhad: A Leading Low-Cost Airline

    1014 Words  | 3 Pages

    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) in Asia. This paper will then show how innovation is a key aspect in AirAsia’s strategy, and will finally consider the external environment framework in which AirAsia is succeeding.

    Read More

  • The Four Characteristics of Services Offered by Air Asia

    663 Words  | 2 Pages

    The next characteristic of service offered by AirAsia is inseparability. Inseparability refers to a distinguishing characteristic of services that reflects interconnection among the service provider, the customers involved in receiving the service and other customers sharing the service experience (Hoffman&Bateson, 2010). Based on this definition, it can be concluded that the inseparability in the service involves the participation by both the customers and also the service provider. Different from the goods that are manufactured prior to its sale, the services production includes the presence of the customers in its production process. For AirAsia, the production of the services started as soon as the passengers board the plane. Since the production and the consumption of the services happen simultaneously, then punctuality is very important especially for AirAsia, which is an airline. AirAsia must ensure that their flights depart on time and should try their best to avoid flight delays. This is because flight delays will cause dissatisfaction to the customers and might cause inconvenience to them.

    Read More

  • Evolution of Airline Industry in India

    2069 Words  | 5 Pages

    1997-98 to 2002-03: During this period, Indian aviation lacked focus, leadership and strategic direction, which kept the industry grounded. The sector was both, over-regulated and under-managed. No new entrants were permitted ...

    Read More

  • Singapore Airlines Recommendations to Management

    778 Words  | 2 Pages

    The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.

    Read More

More about Strategic Analysis Of Airasia

Open Document