Business Strategy of Airasia

Topics: Strategic management, Low-cost carrier, Airline Pages: 4 (1039 words) Published: November 14, 2011
Business Strategy Air AsiaCompany BackgroundAir Asia is one of the companies that very successful in adopting the cost leadership strategy as one of their competitive advantages. Air Asia had been established on 12 december 2001 with Dato Sri TonyFernandez as the CEO. As what the slogan says now everyone can fly which actually attract thecustomers to buy the ticket and also they offer a lot of promotions to many destinations around asia andcustomers are chasing around in getting their promotions even though the customers are not reallymeant to go somewhere. This is also part of their marketing strategies in creating the customerawareness about their brand. 2.1 Company Background 

 AirAsia is one of the businesses that have successfully adopted cost leadershipthrough operational effectiveness and efficiency. The cost advantages haveenabled AirAsia to become the Asia¶s leading low fare airline. Established on 12December 2001, AirAsia has been such a big phenomenon in airline industryespecially in Asia. By using a simple but strong slogan ³Now Everyone Can Fly´, AirAsia has successfully positioned itself in customers¶ mind. Its net profit for thesecond quarter ending 31 December 2004 was reported RM 44.4 million, a 323%increase over the previous quarter (AirAsia, 2005). 2.2 Mission Statement and Value of AirAsia

 AirAsia¶s mission statement is to be the ³Asia's leading low fare no frills airlineand first to introduce "ticketless" traveling, AirAsia will be unveiling moreincentives in the future to encourage more air travel among Malaysians.´(AirAsia, N.D).³Now Everyone Can Fly´ clearly describes AirAsia¶s value. Cost advantagescreated by AirAsia through operational effectiveness and efficiency go directly tothe customers. The customers now enjoy much more surplus than before as thefare falls dramatically and AirAsia captures some of the µdead weight losses¶ bycapturing segments of customers that previously cannot afford the airlines¶ fare. 306-669 Strategic...
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