Air Asia Strategic Analysis - 7334 Words

STRATEGIC ANALYSIS OF AIRASIA THE BEST LOW-COST CARRIER AIRLINES IN THE WORLD ASSIGNMENT FOR MICROECONOMICS FACULTY OF ECONOMICS AND BUSINESS NATIONAL UNIVERSITY OF MALAYSIA BY: IWAN BUDHIARTA P-46048 MALAYSIA – 2009 I. INTRODUCTION 1 A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates all â€Å"non-essential† services. The typical low-cost carrier business model is based on: – – – a single passenger class a single type of airplane (reducing training and servicing costs) a simple fare scheme (typically fares increase as the plane fills up, which rewards early reservations) free seating (which encourages passengers to board early) direct, point to point†¦show more content†¦Optimise routes and development of new secondary hubs †¢ Further enhance route network, venture destinations previously uncovered †¢ Yield enhancement due to benefits of maturity †¢ Ancillary expansion Stage 3 (we are here) Pursue regional expansion expanding business on existing platform (ancillary) †¢ Expand network to new countries †¢ Develop strategic partnership for mutual benefits †¢ Use strong brand to drive new business Stage 2 IPO Capital Raising and become publicly traded company †¢ Strengthen financial sheets †¢ Improve company credibility rating †¢ Ability to negotiate favourable terms with our suppliers Stage 1 Entry to mark et. Aggressive brand building recognition †¢ Introduction to theShow MoreRelatedAir Asia-Marketing Plan770 Words   |  4 Pages  AIR ASIA Executive Summary   Strategic management has played a key role in the success of many business organizations in the world including airlines and Air Asia is no exception. Commencing in 1996, within fifteen years, Air Asia managed to expand its operations into another ten countries. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. This paper will look at the award winning Malaysian low cost carrier-Read MoreGlobal Low-Cost Airline Market To 2018802 Words   |  4 PagesThe report provides detailed market analysis, information and insights, including: Historic and forecast revenue of global low-cost airlines market covering 40 countries. Detailed regionwise (Americas, Asia-Pacific, Europe, Middle East Africa) analysis of low-cost airlines key performance indicators such as the number of seats available and seats sold, load factor, average revenue per passenger, total revenues, revenue generating passenger kilometers and passenger kilometers available forRead MoreAir Asia- Porters Five Forces866 Words   |  4 Pagesindustry by identify and analysis those five forces(appendix) and thus determine strengths and weaknesses of the industry. Those five forces are now used to determined Air Asia’s strengths and weaknesses which are shown as below: Threat of Entry There is a high barrier entering airlines industry since it requires high capital to set up everything such as purchase or lease air craft, set up office, hire staffs, and etc. Thus, this has reduced the treat to Air Asia. Moreover, brand awarenessRead MoreBusiness Strategy of Airasia1045 Words   |  5 Pages   Business Strategy Air AsiaCompany BackgroundAir Asia is  one of the companies that very successful in  adopting the cost leadership strategy as one of  their competitive advantages. Air Asia had  been established on 12 december 2001 with  Dato Sri TonyFernandez as the CEO.  As what the slogan says î€ now everyone can fly which actually attract thecustomers to buy the ticket and also  they offer a lot of  promotions to many destinations around asia andcustomers are chasing around in  getting their promotionsRead MorePestle Analysis Biman Bangladesh Airlines.Doc1580 Words   |  7 PagesPESTEL Analysis on Biman Bangladesh Airlines Introduction PESTLE an analysis is very important for case analysis political, economic, social, technological factor of any company. We have selected Biman Bangladesh airlines for doing Pestle analysis. So, this entire report will cover the importance of Pestle analysis and we will show how The pestle analysis of Bangladesh Airlines are flying. Biman Bangladesh airlines is the leading airlines Industry and oldest airlines industry in Bangladesh. WeRead MoreEvaluation Of Sia s Strategic Management And The Challenges Faced By Sia1497 Words   |  6 PagesEvaluation of SIA’s Strategic Management and the Challenges faced by SIA Analysing the macroeconomic environment is important to understand the impact of the organization (Philip Kotler, 1999). PEST analysis was used extensively to analyse the strategic management of an organization (Drucker, 2006) in which PEST stands for Political, Economic, Social and Technology. Tennent and Friend (2011) suggested an extension for this which is referred to as PESTEL which in addition to the above-mentioned aspectsRead MoreBlue Ocean Strategy in Air Asia1659 Words   |  7 Pagesover long periods of time. AirAsia approaches to prevent this occurring and to generate continued growth is to frequently re-assess its strategy so that they build strong businesses in the attractive industries of the future Company overview - Air Asia Berhad AirAsia’s leading airline was established with the dream that everyone can fly. Since 2001, the company has swiftly broken travel norms around the globe. It has risen to become the world’s best. With a route network that spans through moreRead MoreAir Asia: Strategic Management Report4189 Words   |  17 PagesAir Asia: Strategic management report Intoduction Air Asia was founded in 1993 and has since grown to be one of the biggest airlines in the world. It initially operated in Malaysia and currently operates in over 25 countries (Ricart and Wang 2005). It began operations in October 1996, operating out of Kuala Lumpur as its central location (Ricart and Wang 2005). The airline was bought by Tune Air in 2001 for one ringgit, the equivalent of 0.26 US cents, at a time when the company had $10.5 millionRead MoreAir Asia Swot Analysis1942 Words   |  8 PagesAIR ASIA 1. a) Air Asia’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 and services. AirAsia’sRead MoreAirbus Marketing Plan1019 Words   |  5 PagesEADS, a European airspace company 1 Marketing Plan - Agenda 1. Strategic analysis 2. Achievable Marketing Objectives for 2010 3. Yearly Action Plan Marketing Budget 4. Control Procedures Criteria of Success 2 Marketing Plan - Agenda 1. Strategic analysis 2. Achievable Marketing Objectives for 2010 3. Yearly Action Plan Marketing Budget 4. Control Procedures Criteria of Success 2 Strategic analysis 1.1 Business Trend Aviation is an important element in today’s world