{draw:frame} MGMT102 - Strategy Term Project An In-Depth Analysis into AirAsia Team Members: Arlianawati Binte Abdul Rahman Bek Wei Da Edmund Lee Jing Yang Loo Wen Xiang Seah Suat Peng Serene Yeo Kok Wee Eugene Table of Contents 4.6.4 - Threats Fuel Cost AirAsia’s ability to increase profitability is largely dependent on how well the group succeeds in maintaining cost-efficient operations. Price of jet fuel has increased to levels that only two or three years ago would have seemed impossible
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INTERNAL ANALYSIS 2.1 The Firm’s Resources: Tangible and Intangible 2.2 Capabilities Identification 2.3 Core Competency Analysis 2.4 Value Chain Analysis 2.5 The Firm’s Weaknesses 2.6 SWOT Analysis 3.0 STRATEGIES AND RECOMMENDATIONS 3.1 Current Strategies 3.2 Future Strategies 4.0 REFERENCE LIST Introduction 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. The report
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Air Asia Background 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
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and thus determine strengths and weaknesses of the industry. Those five forces are now used to determined Air Asia’s strengths and weaknesses which are shown as below: Threat of Entry There is a high barrier entering airlines industry since it requires high capital to set up everything such as purchase or lease air craft‚ set up office‚ hire staffs‚ and etc. Thus‚ this has reduced the treat to Air Asia. Moreover‚ brand awareness is quite important in this industry. Thus‚ to enter this industry
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Group 2 Michelle De Jesus Beatrix Evangelista Keisha Dawn Flores April Danielle Marquez Korina Robles Nicole Zulueta Company Case (AirAsia: The Sky’s the Limit) 1. What are the micro and macro environmental factors that have contributed to the early success of AirAsia? Micro Environmental Factors CEO Tony Fernandes – a strong believer in “leading by example”‚ he works alongside his team that allows him to get to know them better. Partners – although AirAsia has limited resources‚ it has
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Apple prices strategies. Introductory prices. This strategy means to set low prices that are used to gain entry into the market. It is usual used from startup companies and companies that want to enter in the new market. Establish a high reference price Behaviorial economist Richard Thaler has noted that consumers are really bad at making decisions about value and constantly need "reference prices" for comparison. A dress costs $80. Is that too much? Not if it’s marked down 50 percent from $160
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costs. Consumer confidence dwindled‚ causing a drop in up to 70 percent in global airline load and a 25 percent drop in air traffic (Travel Research Ltd‚ 2001). This
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Price Strategy Price is the amount of the money customers have to pay to obtain the product. The value that received from the product must be higher than the value that customers pay for exchange its goods and services. Price does affect customers’ choice in the products or services. Customers today are willing to pay more because the higher price means higher quality one brand offers to them. As the product passes through its life cycle‚ its pricing strategies usually change. For each stage of
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established in 1993 and began operations on 18 November 1996. It was originally founded by a government-owned conglomerate‚ DRB-Hicom. On 2 December 2001 the heavily-indebted airline was bought by former Time Warner executive Tony Fernandes ’s company Tune Air Sdn Bhd for the token sum of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes the CEO‚ turned the company around‚ producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur
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there is a huge scope of growth for AirAsia in Asia. The huge population with rise in middle class and a lot of disposable income together with the absence of affordable forms of transportation post a high demand for AirAsia as a low cost airline. It is also anticipated that due to the rapid urbanization trends the air travel market will continue to grow at a fast pace. The geographical structure of Asia which is archipelago will also contribute to the air transport. Example: between East and West Malaysia
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