Airasia Marketing Case

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Master program in Business Administration Marketing Management BUSA 633

Company Case AirAsia: The Sky’s the Limit

Submitted to Dr. Harbi Hasan

Saturday, 22 December, 2012

Contents
Contents ...................................................................................................................................................... 2 1 Introduction.......................................................................................................................................... 3 1.1 1.2 Case Overview ........................................................................................................................... 3 Low Cost Carrier Strategy Overview ....................................................................................... 3 Simple Product: .................................................................................................................. 3 Positioning ........................................................................................................................... 4 Low Operating Costs ......................................................................................................... 4

1.2.1 1.2.2 1.2.3 1.3 2

AirAsia History ............................................................................................................................ 4

SWOT Analysis................................................................................................................................... 5 2.1 AirAsia SWOT Analysis ............................................................................................................. 6 Strengths: ............................................................................................................................ 6 Weaknesses:....................................................................................................................... 6 Opportunities: ...................................................................................................................... 6 Threats: ................................................................................................................................ 6

2.1.1 2.1.2 2.1.3 2.1.4 3 4 5 6 7 8

Environmental Analysis ..................................................................................................................... 7 Low Price Strategy ............................................................................................................................. 8 Competition Between Low Cost Carriers........................................................................................ 9 Conclusion ......................................................................................................................................... 10 Recommendation ............................................................................................................................. 10 References ........................................................................................................................................ 11

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1 Introduction
1.1 Case Overview
This case details the rise and expansion of AirAsia in South-east Asia.The company employed a business model for low-cost airlines that was originally developed by Southwest Airlines in the United States and subsequently employed with great success by European companies such as Ryanair and EasyJet. The case thus documents the successful application of a western business model in a previously unexploited Asian environment, and the raise issues of innovation, adaption, strategy and sustainability within the Asian context.

1.2 Low Cost Carrier Strategy Overview
A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates all "non-essential" services. The typical low-cost carrier business model is based on: • • • Single passenger class. Single type of airplane (reducing training...
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