In the airline industry, the suppliers are namely aircraft suppliers and airline employees such as the flight crew and pilots. The changing societal attitudes and cultures such as growing environmental awareness has implications on the emphasis placed on corporate social responsibility.
Thus, it will not be able to achieve any of the generic strategies. Lastly, the company has built a strong brand image amongst the customers.
Investors may find that the airline industry is a slightly volatile investment, however if the airline has a good establishment in the market, and is cost effective and profit generating, this will highly improve industry attractiveness.
It is prudential for Air Asia to pursue both cost leadership and differentiation strategies at the same using an integrated strategy approach. The research identifies Product Development and innovation as the key strategic choice for expanding the market pie for Air Asia Berhad.
People are now keener on exploring places far away from home and are willing to fork out money for such experiences. The huge population of approximately million also provides a ready market. However, the possible impact of fluctuating oil prices in the economy would take a toll on operation costs when fuel prices appreciate Milmo Global emissions of carbon dioxide experienced a sharp increase peaking inhence having a greater impact on how most businesses are carried out The New York Times Better improvisation of e-Service facilities and web based Customer Relationship Management The Advancement in the technology has resulted in most of the Air ticket reservations to be booked online.
The lengthy process for obtaining the operating license for the aircraft is the major bottle neck that new entrants would face in the Aviation sector especially in the Asian region. The competitive pricing with minimal travel time would be a competition cutter.
However, this proved to be an opportunity for budget airlines. According to Pizzihighly motivated employees usually commit themselves to work, thus leading to the provision of better services. Perhaps AirAsia can reach other deals with other cargo companies.
Threat of the Substitutes The threat of the substitutes for the brand Air Asia Berhad within the Asian countries is high. Liberalization of Geographic Markets: Identifying the more outstanding factors would aid the company in recognizing its sustainable capabilities as the returns would also be higher compared to other factors.
Threats Firstly, a number of budget airlines would enter the market and become a threat as well existing ones who may become more competitive. The Asian region is thus gaining increased attention from its western counterparts for the educational and medical tourism.
Employees are also guided on how to provide low-cost services to customers without compromising quality. As a result, the ability of Air Asia to grow is negatively affected.
Malindo Airways, being a new entrant to the domestic market in Malaysia, could go all out for market share at the expense of profitability by under-cutting prices. Depending on the switching costs that are associated with changing airplanes, the bargaining power of the aircraft suppliers will vary.
Information on Air fares is instantly available to the Target Audience at free of cost. The Aviation industry still has lot of scope to control the noise pollution and carbon emission issues for the benefit of the environment. The brand also has an opportunity to undergo more collaboration with airports to use the existing airport passenger transit facilities to reduce the overall capital expenditure for Air Asia Berhad.
It also participates in several social events and brand promotion activities. A lot of airplane companies come out with different strategies to make their company better than their competitors.
Also one important challenge regarding the social change in the consumers is that the consumers have become increasingly demanding. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry.
Support Activities Support activities are those activities which provide assistance required for the primary activities to occur. Harvard Business School Press.
Similarly, procurement of aircrafts that have high capability of providing cheap transport services at lower prices also helps in ensuring that the company offers services at cheap or affordable prices. Air Asia also ensures maximum utilization of aircrafts in order to guarantee low cost services and high productivity.
This could result in a full-scale price war. Richard Brandson from Virgin Blue, for example, is interested in making investments in a low cost airline in Asia.
The aircrafts are highly capable of providing low-cost services.By hedgingfuel, Air Asia paid an average price of US$ per barrel in Q1 from (see Appendix 5).The last decade was very prosperous for several Southeast Asian airlines and the Asia Pacific domestic LCCpenetration by capacity has expanded rapidly, and has reached a saturation level in several countries.
An analysis of the External Environment would be done so as to facilitate a direct comparison between the generic elements where AirAsia has been founded in. We will write a custom essay sample on Air Asia Strategic Management Recommendations specifically for you for only $ $13 (AIR ASIA) Low-cost Carrier and Air Asia ;.
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low cost airlines based in KL, Malaysia Internal & External Environment Analysis • Is a global company dedicated to providing air transportation services of the highest quality and to maximizing returns for the benefits of its shareholders and employees.
Air Asia flies to over 61 domestic and international destinations with routes.
Air Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since market trend. PEST and SWOT analysis of AirAsias international business operations.
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Published: 23rd March, carry out a investigation of its external environment, review a strategic analysis of Airasia to identify opportunities and threats it might face, and to isolate key strengths and any weaknesses that need dealing with. Jun 29, · AirAsia Berhad dba AirAsia MYX: is a Malaysian low-cost airline.
It operates scheduled domestic and international flights and is Asia's Pest Analysis On AirAsia | Management Paradise.Download