Macro-Environment Analysis on Airasia and Its Effect on Marketing Decision Making |
Macro-environment Analysis on AirAsia and its effect on Marketing Decision Making | Prepared by Gajanayagam Jeyasundram | | | |
This paper looks at a comprehensive macro-economic analysis using PESTEL and how it influenced marketing strategy and initiatives at AirAsia. |
Table of Content | Content | 1.0 | Introduction * 1.1 Company Background | 2.0 | Macro-environment Analysis * 2.1 Demographic Factors * 2.2 Economic Factors * 2.3 Natural Factors * 2.4 Technological Factors * 2.5 Political/Legal Factors * 2.6 Cultural Factors | 3.0 | Conclusion |
1.0 Introduction
1.1 Company Background
Air Asia was established in 1993, and started of as one of the subsidiary for government owned company, DRB Hicom. In the late 2001, when then executive of Warner Music wanted to established an airline in Malaysia, he went and meet with Tun Dr. Mahathir Mohammed (the fourth prime minister of Malaysia). Tun Dr. Mahathir took the opportunity to off load debt laden Air Asia to Tony Fernandez. Tony Fernandes via Tune Airways Sdn. Bhd bought over Air Asia with a token sum of RM1 and with a partial debt of 40million. Then AirAsia had only two Boeing carriers. Then, it was carrying around 200,000 passengers in a year. In 2011 alone, it was carrying almost 18 million passengers.
AirAsia slogan is “everybody can fly”. It highlights the low cost carrier strategy it employs. It seeks to keep cost low by offering no frills experience.
2.0 Macro-Environment Analysis
2.1 Demographic Factor.
AirAsia is situated in the geographic location with over 3 billion population. Which is almost half the world population, majority of them never flew before because of high travel cost. This is AirAsia competitive advantage. Its strict adherence to its low cost business model will enable it to tap into this market. Apart from that the low cost model has worked in US and Europe despite the cyclical nature of economic growth.
The diagram above is
This paper looks at a comprehensive macro-economic analysis using PESTEL and how it influenced marketing strategy and initiatives at AirAsia. |
Table of Content | Content | 1.0 | Introduction * 1.1 Company Background | 2.0 | Macro-environment Analysis * 2.1 Demographic Factors * 2.2 Economic Factors * 2.3 Natural Factors * 2.4 Technological Factors * 2.5 Political/Legal Factors * 2.6 Cultural Factors | 3.0 | Conclusion |
1.0 Introduction
1.1 Company Background
Air Asia was established in 1993, and started of as one of the subsidiary for government owned company, DRB Hicom. In the late 2001, when then executive of Warner Music wanted to established an airline in Malaysia, he went and meet with Tun Dr. Mahathir Mohammed (the fourth prime minister of Malaysia). Tun Dr. Mahathir took the opportunity to off load debt laden Air Asia to Tony Fernandez. Tony Fernandes via Tune Airways Sdn. Bhd bought over Air Asia with a token sum of RM1 and with a partial debt of 40million. Then AirAsia had only two Boeing carriers. Then, it was carrying around 200,000 passengers in a year. In 2011 alone, it was carrying almost 18 million passengers.
AirAsia slogan is “everybody can fly”. It highlights the low cost carrier strategy it employs. It seeks to keep cost low by offering no frills experience.
2.0 Macro-Environment Analysis
2.1 Demographic Factor.
AirAsia is situated in the geographic location with over 3 billion population. Which is almost half the world population, majority of them never flew before because of high travel cost. This is AirAsia competitive advantage. Its strict adherence to its low cost business model will enable it to tap into this market. Apart from that the low cost model has worked in US and Europe despite the cyclical nature of economic growth.
The diagram above is