AIrAsia case study
AIR ASIA Case Study Report
12509501267460
Core concepts : Porter’s 5 forces, SWOT Analysis , Analysing the internal environment, Porter’s Value Chain, Competitive advantage within International context(cost analysis and differentiation)
1.0 Porter’s Five Forces:
6197601720215
1.1 Threat of new entrants-
There is a need of high initial investment to run an airline industry business. This high capital requirement is in the form of buying of aircrafts, staff hiring, pilot hiring, etc. Thus, the threats of new entrants for AirAsia are very low.
AirAsia uses a very simple and effective strategy of selling tickets. People have to buy tickets from AirAsia’s website which they do very easily. Thus, through this process, AirAsia saves a lot of money by not being liable to pay any travel agent. This Strategy of AirAsia is hard to imitate and makes them less vulnerable to new entrants. It also provides facilities to people like they can themselves print their ticket or boarding pass and thus competitors cannot easily copy this strategy of AirAsia.
AirAsia Also has very good relations with Government which a very rare capability to have. It is not easy for any new entrant into the industry to gain confidence of the government straightaway. Thus, this makes this industry to enjoy a very low threat of new entrants as it is hard to get license and permit to establish an airline. Thus, Governments regulations are a big barrier to any new entrant into the industry.
Most of the times, nowadays, customer choose their product. Thus, trust on the brand or brand loyalty plays an important role in this. Certainly, AirAsia has built their trust on customer. It is not easy for nay new entrant to come into the industry and gain customer’s trust and build reputation. Also, it can be said that AirAsia will continue to enjoy this trust of customer until and unless it provides the cheapest fare.
1.2 Threat of substitute-
Other transport methods: Substitutes are basically
12509501267460
Core concepts : Porter’s 5 forces, SWOT Analysis , Analysing the internal environment, Porter’s Value Chain, Competitive advantage within International context(cost analysis and differentiation)
1.0 Porter’s Five Forces:
6197601720215
1.1 Threat of new entrants-
There is a need of high initial investment to run an airline industry business. This high capital requirement is in the form of buying of aircrafts, staff hiring, pilot hiring, etc. Thus, the threats of new entrants for AirAsia are very low.
AirAsia uses a very simple and effective strategy of selling tickets. People have to buy tickets from AirAsia’s website which they do very easily. Thus, through this process, AirAsia saves a lot of money by not being liable to pay any travel agent. This Strategy of AirAsia is hard to imitate and makes them less vulnerable to new entrants. It also provides facilities to people like they can themselves print their ticket or boarding pass and thus competitors cannot easily copy this strategy of AirAsia.
AirAsia Also has very good relations with Government which a very rare capability to have. It is not easy for any new entrant into the industry to gain confidence of the government straightaway. Thus, this makes this industry to enjoy a very low threat of new entrants as it is hard to get license and permit to establish an airline. Thus, Governments regulations are a big barrier to any new entrant into the industry.
Most of the times, nowadays, customer choose their product. Thus, trust on the brand or brand loyalty plays an important role in this. Certainly, AirAsia has built their trust on customer. It is not easy for nay new entrant to come into the industry and gain customer’s trust and build reputation. Also, it can be said that AirAsia will continue to enjoy this trust of customer until and unless it provides the cheapest fare.
1.2 Threat of substitute-
Other transport methods: Substitutes are basically
References: Grant, Robert M, Contemporary Strategy Analysis, 8th Edition, 2013. Faughey, Bernard, UCD MSc Project Management-Business Strategy Lecture Notes 2014-2015