Airasia Strategy
Prepared By:
Visvanathan Arutsothi (G0914033)
Wan Sabri Wan Dagang (G1022379)
Muhanned Obeidat (G1221663)
Salim Ahmad (G1022179)
Sulaiman daud (G1031351)
Naeem Nasser (G1139591)
for Dr. Dolhadi Zainudin
Prepared By:
Visvanathan Arutsothi (G0914033)
Wan Sabri Wan Dagang (G1022379)
Muhanned Obeidat (G1221663)
Salim Ahmad (G1022179)
Sulaiman daud (G1031351)
Naeem Nasser (G1139591)
for Dr. Dolhadi Zainudin
Graduate School of Management, International Islamic University, Malaysia
MGT 6263 – Management Policy and Corporate Strategy
AirAsia
AirAsia
Can Sustain Its Low Cost Strategy in the Long Run?
Can Sustain Its Low Cost Strategy in the Long Run?
Table of Contents Table of Contents 1 Introduction 3 History 3 Vision 3 Mission 4 Values 4 The Management Team 4 Achievements 5 Main Challenges 6 Strategy Study 7 PEST Analysis 7 SWOT Analysis 8 Marketing mix 11 Competitive Analysis 13 Competitive Advantage 14 Value Chain Analysis 15 The 3C’s Model 16 Business Study 18 Key Partners 18 Resources 19 Value Propositions 19 Customer segmentation 20 Customer Relationship Management (CRM) 21 Revenue Model and Cost Structure 22 Revenue Recognition 24 Market Demand 25 What Customers’ Want 25 What Airline Customers’ Want 25 Recommendation 27 Can AirAsia Sustain in the Long Run? 27 Appendix 28 References 32
Introduction
History
AirAsia was established in 1993. It was originally founded by a government-owned company Hicom Berhad with a 75% interest and Mofaz Air with a 25% interest. Other than the initial capitalization, Mofaz Air did not participate in a number of subsequent cash calls by the Company. In 1996, the Company became Malaysia’s second national carrier, and officially commenced operations as full-service domestic airline with two aircraft. In December 2001, Tune Air acquired a 99.25% shareholding in the Company
Visvanathan Arutsothi (G0914033)
Wan Sabri Wan Dagang (G1022379)
Muhanned Obeidat (G1221663)
Salim Ahmad (G1022179)
Sulaiman daud (G1031351)
Naeem Nasser (G1139591)
for Dr. Dolhadi Zainudin
Prepared By:
Visvanathan Arutsothi (G0914033)
Wan Sabri Wan Dagang (G1022379)
Muhanned Obeidat (G1221663)
Salim Ahmad (G1022179)
Sulaiman daud (G1031351)
Naeem Nasser (G1139591)
for Dr. Dolhadi Zainudin
Graduate School of Management, International Islamic University, Malaysia
MGT 6263 – Management Policy and Corporate Strategy
AirAsia
AirAsia
Can Sustain Its Low Cost Strategy in the Long Run?
Can Sustain Its Low Cost Strategy in the Long Run?
Table of Contents Table of Contents 1 Introduction 3 History 3 Vision 3 Mission 4 Values 4 The Management Team 4 Achievements 5 Main Challenges 6 Strategy Study 7 PEST Analysis 7 SWOT Analysis 8 Marketing mix 11 Competitive Analysis 13 Competitive Advantage 14 Value Chain Analysis 15 The 3C’s Model 16 Business Study 18 Key Partners 18 Resources 19 Value Propositions 19 Customer segmentation 20 Customer Relationship Management (CRM) 21 Revenue Model and Cost Structure 22 Revenue Recognition 24 Market Demand 25 What Customers’ Want 25 What Airline Customers’ Want 25 Recommendation 27 Can AirAsia Sustain in the Long Run? 27 Appendix 28 References 32
Introduction
History
AirAsia was established in 1993. It was originally founded by a government-owned company Hicom Berhad with a 75% interest and Mofaz Air with a 25% interest. Other than the initial capitalization, Mofaz Air did not participate in a number of subsequent cash calls by the Company. In 1996, the Company became Malaysia’s second national carrier, and officially commenced operations as full-service domestic airline with two aircraft. In December 2001, Tune Air acquired a 99.25% shareholding in the Company
References: A. Parasuraman, Z. V. (1991). Understanding Customer Expectations of Service. Sloan Management Review, 39–48. AirAsia. (2011). AirAsia, A Definitive Guide to Malaysia, Truly Asia. Kuala Lumpur: AirAsia. AirAsia. (2013). AirAsia. Retrieved from About Us: http://www.airasia.com/my/en/about-us/ CAPA. (2013). AIRASIA CLOSES STRATEGIC REVIEW. Direct News Source. Elliott, C. (2011, February 6). What Do Airline Passengers Really Want — Besides a Good Fare? Retrieved from Elliott: http://elliott.org/blog/what-do-airline-passengers-really-want-besides-a-good-fare/ Journal Pengajian Media Malaysia. (2009). Malaysian Journal of Media Studies, Vol. 11, 35-48. Man, M. K., & Justine, J. B. (2005). AirAsia In The Malaysian Domestic Airline Market: Empirical Analysis of Strategy. International Business & Economics Research Journal, 53-64. Singh, A. (n.d.). Asian Airlines – Navigating through Turbulence. Retrieved from Clarkson’s Capital Markets. Sundram, A. (2012, May 2). In The News. Retrieved from Malaysia Airlines: http://www.malaysiaairlines.com/in/en/corporate-info/press-room/latest/malaysia-airlines-to-focus-on-collaboration-with-airasia.html