According to the Boston Consulting Group (BCG) model, it clearly shows that the services offered by AirAsia definitely falls under the Star category as this organization has been achieving excellently high growth rate. Not only has that, the company, too, acquired larger market share comparatively. Although those who fall in the Star category are considered leaders and capable of high growth market as well as generate lots of cash, still, AirAsia need to be alert of their usage of lots of cash due to different conditions of market condition. Not only that, the organization too need to be alert that the market growth cannot be the only or the most important factor when AirAsia is evaluating the growth market as it would invite other competitors. For an example, when capacity exceeds demand, there is a possibility for a market to be low margin and later on become unattractive.
When AirAsia first began its operations in 1996, the organization was in Dog quadrant and when it was bought over by Tune Group in 2001, Airasia was moved to the Question Mark as Airasia’s growth is still unpredictable. Over the years, the company, this organization have proven itself and diversify its business, so it was put in the Star quadrant which ensures a healthy business revenue. AirAsia’s closest rival or competitors in South East Asia are Malaysia Airlines, Tiger Airways, Jetstar and Firefly. Judging by market share and growth rate, it can be clearly seen that AirAsia has outperformed the other airlines and hence is not a significant threat for AirAsia. One reason why it can outdo Malaysia Airlines is because it is a low cost carrier compared to the Malaysia Airlines which is full service provider. Anyhow, AirAsia still need to improve its services especially on its customer service and different airline routes which is still not offered. Shall AirAsia fail to do so, at times, the flyers which are the customers would be willing to pay more and seek for other airlines due to...
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