...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 of...
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...PEST and SWOT analysis of AirAsias international business operations 1.1Background AirAsia was set up 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...
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...PACE - Professional & Continuing Education ON-LINE DISTANCE LEARNING MASTER IN BUSINESS ADMINISTRATION NUR EFIZA AB. RAZAK SUBJECT: Strategic Management SUBJECT CODE: MGT6303 Coursework Assignment 2 Due Date: 31st March 2015 Executive Summary In this second assignment, I have choose AirAsia and AirAsia X Group to further illustrate their strategic direction and development which is crucial for their survival. With a new travellers on the scene, it is inevitable that AirAsia will keep on growing. With hubs in KL, Bangkok, Jakarta, Sabah and Sarawak, AirAsia operates in a region with the world’s largest population, Asia. AirAsia’s strategy for growth is based on the potential demand from this region, which is huge indeed. Section (a) described the Ansoff Matrix and how it can be used by organisation. In another words, at the corporate level, the decision makers ought to address questions and issues related to the overall direction and scope of the business and where it should be going, as well as to look at the organisation’s competitiveness and where in the future it can continue to be stronger (MacMillan and Tampoe, 2000). Section (b) described the tactical level strategies that can further allow the grand strategies discussed in section (a) to be acted upon. Also the merits and limitations in each strategy. Answer for (a) The Ansoff Product – Market Growth Matrix is designed by a mathematician, H. Igor Ansoff in 1957. The matrix provides ways...
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...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...
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...AirAsia Berhad (284669-W) 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel : (603) 78809318 Fax : (603) 78806318 E-mail : investorrelations@airasia.com Website : www.airasia.com CONTENTS AirAsia Berhad | annual report 2007 Our Dreams and Aspirations To be the largest low cost airline in Asia serving the 3 billion people who currently are underserved with poor connectivity and high fares. G G 2 4 7 8 12 20 22 24 26 30 32 34 36 40 42 43 44 46 47 48 52 53 54 56 60 62 66 68 72 76 81 82 83 152 156 157 G Our Dreams and Aspirations Corporate Profile Five Year Financial Highlights Share Performance Chairman’s Statement Group Chief Executive Officer’s Report AirAsia’s Strategy for Success Route Network Safety Product Development Go Holiday The Sky is Your Limit Champion of Low Fares AirAsia Roars Into Formula One One AirAsia Our People, Our Pride Investing In Our Future Major Milestones Serving You Better from Our 2nd LCC Terminal Awards & Accolades AirAsia Cares AirAsia Group Corporate Information Board of Directors Directors’ Profile Senior Management Senior Management Profile Managing Risk to Maximise Returns AirAsia Financial Snapshots Statement on Corporate Governance Audit Committee Report Statement on Internal Control Additional Compliance Information Financial Statement Analysis of Shareholdings List of Properties Held Notice of Annual General Meeting Proxy Form To be the best company to work for where employees...
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...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...
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...Introduction: AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. 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. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. 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. Through the corporate 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. AirAsia creates values through the following vision and mission. AirAsia’s vision is to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Whereby, their mission is to create a globally recognized ASEAN brand, attain the lowest cost so that everyone can fly with AirAsia and maintain the highest quality product, embracing technology to reduce cost and enhance service levels. EXECUTIVE SUMMARY AIR ASIA Strategic management has played a key role in the success of many business organizations in the world including...
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...Arts Elixir Mgmt. Arts 51 (2012) 11164-11171 AirAsia Berhad: Strategic analysis of a leading low cost carrier in the Asian region Yasmin Yashodha Taylor’s University Lakeside Campus, No. 1 Jalan Taylor's, 47500 Subang Jaya, Selangor Darul Ehsan, Malaysia. A R TI C L E I N F O Art i c l e h i st ory : Received: 9 July 2012; Received in revised form: 13 October 2012; Accepted: 30 October 2012; K ey w or d s Strategic analysis, Region, Low cost, Extensive. ABSTRACT This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). The study demonstrates the diverse business-level, corporate level and competitive strategies of AirAsia Berhad, played crucial roles in the LCC to successfully penetrate the under-served market segment of the airline industry within the ASEAN region. An in-depth analysis using a wide array of academic resources, relevant financial, legal and management resources and authorized websites, including face-to-face interviews were used to provide a more consequential comprehension on the varied business and international strategies that were implemented by AirAsia Berhad. This research exhibits critical analysis pertaining to the current macro environment of the aviation industry which includes the PESTEL framework and Porter’s Industry Analysis. The competitive environment analysis for AirAsia Berhad is thoroughly scrutinised to examine the driving...
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...1.0 Introduction AirAsia originally was founded by government and on 2 December 2001 was bought by Tony Fernandes. AirAsia was established in year 1993. AirAsia has travel around the earth and ascend to become the world’s best in year 2001. AirAsia continues to spread out the way for low-cost aviation through the innovation, efficient and passionate approach to business with a route a network that extent through over 20 countries. There are some companies which link with AirAsia such as AirAsia X, Thai AirAsia, Philippines’ AirAsia Inc., AirAsia Japan and Indonesia. In addition, for the vision part in AirAsia, AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. While for the mission of AirAsia, AirAsia wants to be the best airline company to work whereby employees are treated as part of the big family. Besides, AirAsia try to maintain the lowest cost hence everyone can fly with AirAsia. Highest quality product, embracing technology to lower the cost and improvement in service levels will be maintained by the AirAsia airline also. Lastly, create a globally recognized ASEAN brand will be the mission part of AirAsia. In the values part, AirAsia will implement trough the following key strategies which are: * Safety * Low fare, no frills * Lean distribution system * Point to point network * High aircraft utilization * Streamline operation The loyalty...
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...1.0 Introduction AirAsia originally was founded by government and on 2 December 2001 was bought by Tony Fernandes. AirAsia was established in year 1993. AirAsia has travel around the earth and ascend to become the world’s best in year 2001. AirAsia continues to spread out the way for low-cost aviation through the innovation, efficient and passionate approach to business with a route a network that extent through over 20 countries. There are some companies which link with AirAsia such as AirAsia X, Thai AirAsia, Philippines’ AirAsia Inc., AirAsia Japan and Indonesia. In addition, for the vision part in AirAsia, AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. While for the mission of AirAsia, AirAsia wants to be the best airline company to work whereby employees are treated as part of the big family. Besides, AirAsia try to maintain the lowest cost hence everyone can fly with AirAsia. Highest quality product, embracing technology to lower the cost and improvement in service levels will be maintained by the AirAsia airline also. Lastly, create a globally recognized ASEAN brand will be the mission part of AirAsia. In the values part, AirAsia will implement trough the following key strategies which are: * Safety * Low fare, no frills * Lean distribution system * Point to point network * High aircraft utilization * Streamline operation The loyalty...
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...COMPANY ANALYSIS : AIRASIA BERHAD TABLE OF CONTENTS Introduction : Background of the company----------------------------------------------------------------3 SWOT Analysis---------------------------------------------------------------------------------------------5 Lost Cost Carrier [LCC] Business Model----------------------------------------------------------------9 Current Issues / Problems---------------------------------------------------------------------------------13 Strategy to solve problems-------------------------------------------------------------------------------19 Conclusion-------------------------------------------------------------------------------------------------23 References-------------------------------------------------------------------------------------------------25 INTRODUCTION : BACKGROUND OF THE COMPANY AirAsia Berhad [Company No: 284669-W] [Incorporated in Malaysia with limited liability under the Companies Act, 1965] First Quarter Report Ended 30 September 2004. This is the first quarterly announcement made by AirAsia to the Bursa Malaysia Berhad since its listing on 22 November 2004. AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. 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...
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...MALAYSIA AIRLINES SYSTEM AND AIRASIA AIRLINES COLLABORATION TAKES PLACE. TABLE OF CONTENTS QUESTIONS 1:- Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal From its inception, it has not been plain sailing for the planned share swap between two of the country's most bitter airline rivals — Malaysia Airlines (MAS) and AirAsia — given the many issues involved...
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...CONTENT PAGES 1.0 INTRODUCTION…………………………………………………………………2 About the product…………………………………………………….………….2 2.1 Company background…………………………….………………….....7 2.2 Business process and operation…………………..………………….9 2.3 Low cost carrier (lcc) business model……………….………………11 2.4.1 Business model……………………………………………...11 2.4 Competitive Advantages …………………………..…………………..12 2.5 Historical Performance………………………………..……………….13 2.0 ANALYTICAL SWOT ANALYSIS……………………………….……………..18 3.0 PRODUCT ANALYSIS…………………………………………….……………21 4.6 The product Life Cycle (PLC)………………………………....………21 4.0 STRATEGIS AND TACTICS………………………………………..………….24 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 6.7 Market Segmentation………………………………………..………….26 6.8 Target Market Profile……………………………………………………30 6.9 Positioning………………………………………………………….…….32 6.0 MARKETING STRATEGIES AND EVALUATION OF MARKET PROGRAM ELEMENTS………………………………………………………………………..33 Refferences…………………………………………………………………………………………………………….36 1.0 INTRODUCTION AND HISTORY a. Introduction of the product Name of the company: Air Asia Berhad ABOUT THE PRODUCT 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...
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...AirAsia : Indeed the Sky's the Limit! ASIAN JOURNAL OF MANAGEMENT CASES, 7(1), 2010: 7–31 SAGE PUBLICATIONS LOS ANGELES/LONDON/NEW DELHI/SINGAPORE/WASHINGTON DC DOI: 10.1177/097282011000700103 Lead Article AIRASIA: INDEED THE SKY’S THE LIMIT! Rizal Ahmad This article details the development of AirAsia Malaysia from 2005 to 2008 and builds on a prior case, ‘AirAsia: The Sky’s the Limit’. Within only four years, AirAsia 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. The article documents AirAsia’s marketing strategy and discusses its approach towards ‘market development’ and ‘product development’. The Blue Ocean Strategy concept is used as a tool to examine AirAsia’s strategic moves. Keywords: Low-cost airlines, budget airlines, marketing strategy, Asian entrepreneurship In the case study ‘AirAsia: The Sky’s the Limit’, the authors Ahmad and Neal (2006) discussed AirAsia’s comeback from a debt-laden scheduled airline (US$ 10.5 million in December 2001. The airline was bought by Tune Air for a token sum of one ringgit1 or 0.26 US cents) to a profitable low-cost or budget airline that managed to attract US$ 200 million in additional capital through its initial public offering in October 2004. AirAsia Berhad or Malaysia AirAsia (hereafter referred to as AirAsia) was credited for its efforts in enabling Malaysian...
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...Contemporary Developments in Business and Management 1.0 Executive Summary This report is about the growth of a Malaysian brand low cost carrier - AirAsia Berhad on how they started this business and bring a huge change in the low cost carrier history globally. This report will discuss on how AirAsia business structure is, what is their culture and the expectation to maintain as well as get into the right track of tough time in airline services. The concept of low cost air travel was then new in Malaysia and how does they turned a loss to profit just in seven years? 2.0 Organization Overview AirAsia is the world most leading low cost carrier airline now as their name had earned a lot of recognition worldwide because consumer as their TOP priority with the tagline of "Now Everyone Can Fly", AirAsia has made flying affordable for more than 61million guest. AirAsia started their business in year 2001 with only MYR1.00 with the partnership with Tune Air Sdn Bhd and AirAsia was remodeled into a low cost carrier by January 2002 where their mission is to make air travel much more affordable for Malaysians took flight.Valued at MYR2.3 billion, AirAsia is today award winning and the largest low cost carrier in Asia. From a two aircraft operation of Boeing 737-300, AirAsia currently boasts a fleet of 78 aircraft that flies to over 60 domestic and international destinations. The airline has carried, thus far, over 61 million guests since its first day of operation. Low fares...
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