...Introduction……………………………………………………………………. 2 Air Asia Current Business Strategies…………………………………………..3 Possible Alternative Strategies Evaluation……………………………………. 7 Air Asia Resources Evaluation………………………………………………. 11 Possible Future Strategies For Air Asia Indonesia…………………………… 12 Air Asia Indonesia vs. Adam Air…………………………………………….. 14 Targets For Achievements of The Strategies………………………………… 16 Appendix……………………………………………………………………... 17 Bibliography………………………………………………………………….. 18 2 Introduction Air Asia Indonesia is an originally Malaysian airline company, which started to operate in Indonesia in year 2006. The report is about Air Asia Indonesia and strategies to make it a major player in the Indonesian airline market. 3 Air Asia Current Business Strategies Air Asia wants to be the lowest short-haul airline in every market it goes in. To achieve the goal, it has some strategies such as lean cost structure, different ways of promotion, keeping safety, satisfying guests, and developing human resources (AirAsia.com, 2007, Internet) . Air Asia always tries to keep the operations simple and efficient to keep the costs low, for example by simple and efficient online ticket booking. According to Fu Sen, an ex employee of Awair – the airline company bought by Air Asia , the tickets that have been booked online can printed by the customers or the customers can just remember the booking code and show their identity card for checking-in, so Air Asia can also save...
Words: 2544 - Pages: 11
...brand is Air Asia……………………………………………………….3 3.1 Favorite brand and the reasons brand makes great………………………4 3.0 Bad brand is Rayani Air…………………………………………………………6 4.2 The reason why the brand are bad……………………………………….7 4.0 The major competitor of the favorite brand…………………………………..8 4.1 Malaysia Airlines (MAS) the major competitor of Air Asia………….....9 4.2 Competing brands in term of strategy marketing……………………….10 4.3 Difference between Air Asia and Malaysia Airlines (MAS)……………11 5.0 Conclusion………………………………………………………………………13 6.0 Reference………………………………………………………………………..14 1.0 Introduction The aim of this individual assignment of subjects BPMM3113 Brand Management is to make a bit of criticism in connection with the preferred brand and the brand also not favored. This task is also to evaluate the performance of a popular brand of airline Air Asia and also the favored brand of Air Rayani. For the main competition for Air Asia is Malaysia Airlines (MAS). The airline industry is a big industry, a large and rapidly growing nowadays. In those years ago, air travel has increased by 6% a year and scheduled airlines carry more than 1 billion passengers in 2008. In addition, in this study, both the company and the challenges will be discussed in more detail in this report. It will be discussed further in this study are the weaknesses, advantages and competitive strategy used in the aviation industry. MAS Airlines and Air Asia on profitability...
Words: 3029 - Pages: 13
...Assignment for Strategic Management External influences on growth. All industries are influenced by the external environments, the firm's ability to react quickly tho the changes may help the growth of cripple them. There are 2 main models to help identifying them PESTEL and 5 factors. In the following, I will be discussing the relevant PESTEL tool, with incorporated 5 factor contributions due to the lack of information to plot out the 5 factor model. Politics Rules and legal compliance differs from country to country. In the budget airline segment, the delegalisation internationally is to their advantage for them, as they have now a wider geographical market opportunities. On the other hand, budget flights being able to provide international services is a real threat to the commercial flights, in which airlines which are tied to their countries comes as a hurdle in to all flight traveling to or from the country in efforts to protect their national carriers eg Singapore Airlines is ties to Singapore and Britirsh airways are tied to Great Britain. Economy Cost of the raw materials required for the business are high and an extant of good relationship with the supplier plays an active part in negotiations to drive down prices. (bargaining power of suppliers). Most continental flights generate a higher percentage of profits from loyal first class and business travelers. Social the growth in wealth globally has increased the spending power of the consumers and the demand...
Words: 2024 - Pages: 9
...STRATEGY PROCESS MODELS 1.0 STRATEGIC ANALYSIS Business Process And Operation Air Asia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. The following shows the home page of Air Asia.com as the company key channel of marketing and sales. Exhibit 1 – Air Asia.com Home Page To book a flight with Air Asia, customers can either choose the following channels or simply visit the Air Asia.com home page and follow the below 5 steps. 1. Call centre 2. Sales office and airport sales counter 3. Authorized travel agents 4. Mobile booking via mobile.Air Asia.com or 5. Online (http://www.Air Asia.com) in 5 easy steps as shown below. Step 1 - Search Step 2 - Select Step 3 - Guest & Contact Step 4 - Payment Step 5 – Itinerary The Product Life Cycle (PLC) Air Asia, Airlines Company with 58 flight destination is in the growth phase position of Product Life Cycle (PLC) stage. The growth phase is when loyalty begins to be built up. Some products or services can be taken up by the customer base very quickly and achieve rapid growth. Sales of Air Asia Airlines grew tremendously in every country in which they were available. It is during the growth phase that the product will begin to recover its development and launch costs and slowly move through the break – even mark to begin to make a profit for the organization. During the growth stage of a new...
Words: 4373 - Pages: 18
...Table of Content Contents Marketing Audit 2 External analysis 2 Macroenvironment 2 Microenvironment 5 Internal analysis 9 AirAsia Marketing Mix (4ps) 9 SWOT Analysis 11 Marketing Objectives 17 Marketing strategy 17 Action Programs 25 Financial Budgeting 26 Implementation Control 27 References 31 Marketing Audit External analysis * Macroenvironment Political Environment Government regulates Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval...
Words: 10894 - Pages: 44
...becoming more environmentally conscious, partly (or mainly) due to stricter emission and noise regulations. Globally, governments are more concerned with the implications of air travel to issues such as global warming and climate change. This is seen by Australia being one of the first countries to implement a carbon emissions tax, and the EU’s plans to implement a similar initiative. Thirdly, customers have greater choice and bargaining power. This is due to deregulation and emergence of new carriers especially the low-cost carriers. More innovative pricing models and services are now available to compete for the consumers’ dollar. With growing affluence of regions such as Asia-Pacific, manufacturers such as Airbus have predicted passengers to double over the next 20years.Finally, the use of technology (such as mobile applications and social media) to advertise, engage consumers, build customer databases, and sell travel deals/fares is becoming increasingly prevalent. Beyond just providing air travel, airlines will leverage more on mobile technology and social networks to foster deeper and more responsive interaction with customers and build brand loyalty Comment on the business-level strategy adopted by AirAsia. How has AirAsia achieved cost leadership or differentiation? The business level strategy adopted by...
Words: 979 - Pages: 4
...by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our philosophy of ‘Now Everyone Can Fly’, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As AirAsia continuously strives to promote air travel, we also seek to create excitement amongst our guests with our range of innovative...
Words: 3109 - Pages: 13
...Officially named Air Asia Berhad, the company is a Malaysian-based low-cost airline founded in 1933. Air Asia is Asia’s largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. Air Asia won the Skytrax World’s best low-cost airline award in 2007, 2009, 2010 and 2011. It has the world’s lowest operating costs at 0.035 US dollars per seat-kilometer in 2010. It is also the first airline in the region to implement fully ticketless air travel and unassigned seats. The group currently operates scheduled domestic and international flights to 80 destinations (including subsidiaries routes) across 25 countries and with over 400 daily flights covering Indonesia, Malaysia and Thailand and for international routes mostly from Kuala Lumpur to Australia, Bangladesh, Brunei, Cambodia, China, France, Iran, India, Japan, Laos, Myanmar, New Zealand, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, the United Kingdom and Vietnam. Air Asia’s main hub is at Kuala Lumpur International Airport as well as the head office of the company and its affiliated airlines, Thai Air Asia and Indonesia Air Asia, have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport.In this assignment,we will obtain information about AirAsia more. TASK A: DEFINITION OF MARKETING #1: * “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Source: Chartered Institute of Marketing (CIM) (http://www...
Words: 4252 - Pages: 18
...ASSIGNMENT 2 2. – Potential target markets low pay target market/lower income consumers * Air Asia airline introduce the low fare tickets as it suit their class of customers. * Most people especially the lower income consumers can afford to travel often to meet their family especially during holidays. * Holding a reduced price sale will give them incentive to purchase. -Marketing mix * To achieve the marketing objective, the company must have strategy that included the marketing mix * Aim to satisfy the consumers needs and companies objective. Delivers the benefits that follow the selected segment * Marketing mix (PRICE) * Refers to the value or worth of a product that attracts the buyer to exchange money or something a value of it. * LOW FARE, NO FRILLS * PRICE FOR SALE * Air Asia airline fare are considerably lower than those of other airlines in Malaysia. The services target the guests who will do without the frills of meals, frequent flyer miles or airport lounges. * Low pay target market as the potential target market, Air Asia airline should price this low fare offering at a level these consumers will pay. * Low operating costs low wages, low airport fees, low costs for maintenance, high percentage of online sales Marketing communication plan,, GROWTH * The sales increase quickly and the profits increase and reach maximum value. (increase and...
Words: 304 - Pages: 2
...Business and Law International Business Strategy Analysis Group Assignment (35%) INB70012 Global Business Strategy Semester 1, 2015 Strategy Analysis of AirAsia Convenor : Dr Aron Perenyi & Lecturer Students : Natalia Knets Emma Dalton Gautham Raju Markus Arian Shakoor (1704583) * Executive Summary * Content page Executive Summary II Content III Figures IV 1 Introduction 1 2 Mission, Vision and Core Values 1 3 External Environment Analysis 2 4 Internal Environment Analysis 4 5 Current Strategy Analysis 7 5.1 Corporate and International Strategy 7 5.2 Business Strategy 9 6 Strategy Fit 9 6.1 Financial Performance Analysis 9 6.2 SWOT Analysis 11 7 Strategy Recommendations 14 References 15 * Figures page Figure 1: Structure of AirAsia 8 Introduction AirAsia is a Malaysian low-cost carrier (LCC) and has been established in 1994 by DRB-Hicom. In 2001 Tony Fernandes took over the company and remains the CEO of the AirAsia Group. Fernandes turned the company from a small airline with two aircrafts operating to one destination with 250 staff (AirAsia 2015a) into the number one LCC operating in Asia. Today it operates on 132 routes, connecting 65 destinations in 18 countries with over 8,000 staff (AirAsia 2015b). The group services almost 12 million passengers per year with 171 aircrafts (AirAsia 2015c). This report provides a comprehensive strategy analysis of Air Asia. First the mission, vision and core...
Words: 4189 - Pages: 17
...History. Air Asia was established in 1993 and the operations began in 1996. Air Asia had rather shaky start and the 1997-1998 financial crisis had futher worsen the situation for Air Asia to grow as a low cost carrier. During it dire stage, the company was taken over by Tune Air under the leadership of Dato Tony Fernandes with the help of Conor McCarthy, former Director of Group Operations, Ryanair. Based on Southwest Airlines and Ryanair’s business model, AirAsia offer “No frills” airlines with a catchy tagline of “Now Everybody Can Fly’’. Within 2 years Air Asia posted a net income of 18.8 million and broke the 100 million net income barriers in 2005. Since then nothing has stopped AirAsia from moving forward and setting milestones, notably the first Asian Airlines to go ticketless in 2002, first multi lingual Asian airlines website in 2003 and the world’s first airline to launch a mobile site. All these are aligned with Air Asia’s philosophy to make flying affordable, easy and convenient. Having flown 100 million’s guests Air Asia has been in the spotlights for all the rights reason, for aggressive marketing, for awards and achievements. Air Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, Air Asia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, Air Asia has flown...
Words: 4095 - Pages: 17
...INTRODUCTION Air blue is a private Pakistani airline based at Jinnah International Airport Karachi. It started its operations on May 24, 2004. It was the first private carrier of Pakistan to operate the Airbus A320 when it initially started. Air blue has been expanding rapidly despite experiencing competition from the other three airline operators in Pakistan. The airline mainly flies on domestic routes plus internationally to Dubai International Airport and also has plans to fly to the Gulf, UK, and USA. MISSION STATEMENT Air blue will be recognized as the most progressive enterprise in the transportation business. We will offer our customers cost effective transportation service within geographical areas and market segments that can benefit from our services and will insure a return on investment and growth rate consistent with current management guidelines. VISION STATEMENT Our vision is to make Air blue the most admired airline in the world. * Ensuring safety comes first * Providing Service Straight from the Heart * Encouraging product leadership * Delivering superior financial returns * providing rewarding career opportunities SWOT ANALYSIS of AIR BLUE: The SWOT analysis is the process of analyzing organizations and their environments based on their strengths, weaknesses, opportunities and threats. This includes the environmental analysis, the process of scanning the business environment for threats and opportunities, which is considered...
Words: 11403 - Pages: 46
...Company: Air Asia Berhad Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia’s largest low fare, no frills airlines. Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai Air Asia and Indonesia Air Asia fly from Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively. AirAsia operates with the world's lowest unit cost of US$0.023 per available seat kilometres (ASK) and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilisation rate of 13 hours a day. It is currently the main customer of the Airbus A 320 which has been operational since 2013. The first unit of the plane arrived on 8 December 2005. Air Asia’s Values The emphasis of this assignment is to Identify how Air Asia can attain its vision and reach its identified target customers by the use of S.T.P strategy and how the firm has managed its marketing decisions to position themselves for maximum competitive advantage. Air Asia’s S.T.P strategy Segmentation...
Words: 2482 - Pages: 10
...Table of Contents Executive Summary 2 1. Introduction 3 1.1 Brief Description of the Report 3 1.2 Current Situation 3 1.3 Company Background 4 1.3.1 AirAsia 4 1.3.2 Vision and Mission 4 2. Strategy and the Industry 4 2.1 Analysis and Evaluation of industry Strategy 4 2.2 Global Forces that Impact the Industry 5 2.3 Importance of an Effective Strategy 5 3. Environmental Analysis and the Strategy 6 3.1 Corporate Strategy 6 3.1.1 Evaluation of Current Strategies 7 3.2 Analysis of the Internal Environment 8 3.3 Analysis of the Resources and Capabilities 9 3.4 Analysis of the External Environment 10 3.5 Proposed Change Strategy 11 4. The Relevance of Strategy Models/Frameworks 11 4.1 Discussion and Application of the Models 11...
Words: 3104 - Pages: 13
...Research Paper Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia Kee Mun, Wong* and Ghazali, Musa Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia. Accepted 23 March, 2011 Brand is crucial in differentiating the superiority of products or services over others. This is an exploratory study examining the differences in brand satisfaction between Malaysian Airlines (full service airlines) and Air Asia (low cost airlines) in Malaysia. 350 usable questionnaires were obtained from respondents in the two main airlines terminals in Kuala Lumpur. Exploratory factor analysis revealed seven brand satisfaction dimensions which are tangibles, price, core service, reputation, publicity, word-of-mouth, and employee. Generally, respondents were not satisfied with all brand dimensions of both airlines. The level of brand dissatisfaction is also higher for Malaysian Airlines compared with Air Asia. Air Asia was perceived better than Malaysian Airlines in price, publicity, and word-of-mouth. On the other hand, Malaysian Airlines was perceived better in tangibles, core service, reputation, and employee. The paper highlights some of its theoretical, managerial and marketing implications to the development of airline industry. Key words: Airlines, branding, satisfaction, Malaysia Airlines, Air Asia. INTRODUCTION The world airline industry has gone through a rollercoaster ride for the past few years. Among...
Words: 10614 - Pages: 43
