Strategic management has played a key role in the success of many business organizations in the world including airlines and Air Asia is no exception. Commencing in 1996, within fifteen years, Air Asia 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. This paper will look at the award winning Malaysian low cost carrier- Air Asia’s by analyzing its strengths and weaknesses using strategic tools such as PEST analysis, Michael Porters Generic strategies, SWOT matrix analysis, Porter’s Force Model Competitive Forces Model, BCG Matrix , Internal and External Factor evaluation Matrix and Competitive Profile Matrix and Financial Analysis and recommend the relevant strategies for adoption to pursue its continue its competitive differentiation and profitability. The paper also throw some insights into the Blue Ocean Strategy concept which is used by Air Asia as one of its strategic moves. INTRODUCTION
Competition in the airline industry is very intense and growing rapidly. The airlines are using several strategies to compete with one another in the industry. Airline companies need to identify their strategic management to achieve their vision and mission and Air Asia is no exception. 2.1 Background
Air Asia was established in 1993 . The company commenced its operations on 18 November 1996. It was originally owned by the government-link company ,DRB- Hicom, a heavily –indebted airline company purchased by Tune Air Sdn Bhd , a company belonged to former Time Warner executive Tony Fernandes's company . By the year 2002 Tony Fernandes made Air Asia a profitable company and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines (MAS) with promotional fares as low asRM1 (US$0.27). Air Asia launched...