Contingencies to Airasia's Marketing Strategy

Topics: Airline, Low-cost carrier, Malaysia Airlines Pages: 3 (894 words) Published: January 24, 2011
Suggest three contingencies AirAsia should consider and rationalize your choice. What are the main modifications to the current marketing strategy should AirAsia undertake to respond to these contingencies.

There are number of threats that AirAsia faces thus it should have well-prepared contingency plans in case certain situations occur. The following part focuses on analyzing three main contingencies that AirAsia should take into consideration as well as the modifications to the current marketing strategy that it would have to make to respond in case certain events occur. What if price war happens...

To compete with the rivals, each airline introduced its own strategy. Famous full service carriers like Singapore Airlines and Thai Airways have set up low cost subsidiaries. Malaysia Airlines launched competitive promotion scheme while independent low-cost airlines like Valuair focused on improving customer services through offering additional benefits to customers. Obviously, the harsh competitiveness in the region strengthens the probability that price war might happen. Price war happens when almost all airline companies simultaneously start to reduce their prices and the region’s aviation industry as a whole fails to deliver profit. Price war might have a serious impact on AirAsia if it, together with other airlines in the region, starts to reduce its prices to compete. Customers now will have various choices and would be able to switch to the airlines that offer them the best price as well as best service. If price war does happen, AirAsia should make the following modification to its current strategy: Increase customer satisfaction by improving on-flight service quality as discussed in depth in the third paragraph of question one. What if customers decide to switch to other airlines...

Air Asia now has to face up with increasing competition not only from low cost subsidiaries of full service carries but also from the emergence of independent low...
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