AIR ASIA Case Study Report

Nikhil Singh Tomer Business Strategy, BMGT 43370 2nd individual Assignment Addressed to Bernard Faughey MSc Project Management FT
I the undersigned confirm that the work submitted here is entirely my own work, and that any work of others which is included has been properly referenced and acknowledged according to normal academic guidelines. NAME: Nikhil Singh Tomer Student No. 14202643

Core concepts : Porter’s 5 forces, SWOT Analysis , Analysing the internal environment, Porter’s Value Chain, Competitive advantage within International context(cost analysis and differentiation)

1.0 Porter’s Five Forces:

1.1 Threat of new entrants There is a need of high initial investment to run an airline industry business. This high capital requirement is in the form of buying of aircrafts, staff hiring, pilot hiring, etc. Thus, the threats of new entrants for AirAsia are very low.  AirAsia uses a very simple and effective strategy of selling tickets. People have to buy tickets from AirAsia’s website which they do very easily. Thus, through this process, AirAsia saves a lot of money by not being liable to pay any travel agent. This Strategy of AirAsia is hard to imitate and makes them less vulnerable to new entrants. It also provides facilities to people like they can themselves print their ticket or boarding pass and thus competitors cannot easily copy this strategy of AirAsia.  AirAsia Also has very good relations with Government which a very rare capability to have. It is not easy for any new entrant into the industry to gain confidence of the government straightaway. Thus, this makes this industry to enjoy a very low threat of new entrants as it is hard to get license and permit to establish an airline. Thus, Governments regulations are a big barrier to any new entrant into the industry.  Most of the times, nowadays, customer choose