Moreover, Air Asia is not the only one who provides airline service. New entrants have to create brand loyalty by making huge investments to establish their reputation.
This not only affects the timeline set by Air Asia but also influence their profit. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals medical tourismCitibank AirAsia Citibank card has created a very unique image among travelers.
Without the help and guidance from all of you, it will be difficult for us to complete this assignment. HafsahBinti Ahmad Submission Date: Simerly Secondly, Air Asia leads the main battlefield in price among competitors due to its low operating costs.
High Overall, power of supplier is high as there are limited and just availability of suppliers, the switching cost is high i. As such, constant price reduction is done to compete with others. Apart from being risky, Air Asia operates of the LCC model which works effortlessly with the short haul market but is not the best model to use in the long haul market especially if you are new to a segment.
Low switching cost for customers. They targeted these people and offered them convenient and affordable air travel experience. This shows the quality he possesses and the vision he owned. In AugustAirAsia agreed to forge an alliance with Malaysian Airlines by means of a share swap.
However, in airline industry, the growth rate is really low due to limited customers. Technological Global By utilizing information technology, AirAsia was able to the first airline in Southeast Asia utilize e-ticketing and bypass traditional travel agents. Air Asia is also heavily involved with charitable activities such as providing assistance to victims of aviation disasters in Myanmar and China.
The Micro environmental factors include: Use of Digital Technology. In addition, the widespread publicity campaign comes from caring for the environment by reducing the use of paper ticketing system. There are only two aircrafts supplier companies in the world, which are Air bus and Boeing.
In certain airlines, these may be purchased on request. Examples of complaints are around flight delays, being charged for a lot of things and not able to change flight or get a refund if customers could not make it. To make the company better, AirAsiawas recommended via surveys to provide more choices of foods and drinks in order to reach thesatisfaction of passengers.
The micro and macro environment both have different factors.
The Micro environmental factors include: organisations, suppliers, customer market, the intermediaries and competitors. Air Asia Essay The Strategic Analysis of Air Asia, can be done with the help of Michael Porter’s five forces.
It describes the internal affection of the industry with elaborating competitive rivalry amongst the firms in the industry to the bargaining power of customers and suppliers. • Air Asia was established in and began.
Air Asia: Strategic management report Intoduction Air Asia was founded in 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 ). Some of the airlines do not compete directly with Air Asia, but they compete indirectly in routes that Air Asia does not fly.
Thus, the higher the number of competitors, the fiercer the competition. Popular Essays. Abstract AirAsia was the first successful low cost airline in the Southeast Asian region.
This case study discusses the factors that contrib. Essay AirAsia Consumer Behaviour. of alternatives Purchase decisions Postpurchase decisions Conclusion Bibliography Introduction AIRASIA: AirAsia is a Malaysian company, that introduced the Low Cost Carrier service to the domestic market and eventually the asian region.Air asia essay essay