Case Study Air Asia 2

Topics: Low-cost carrier, AirAsia, Tony Fernandes Pages: 4 (705 words) Published: January 13, 2015
Group 2
Michelle De Jesus Beatrix Evangelista
Keisha Dawn FloresApril Danielle Marquez
Korina RoblesNicole Zulueta

Company Case (AirAsia: The Sky's the Limit)
1. What are the micro and macro environmental factors that have contributed to the early success of AirAsia? Micro Environmental Factors
CEO Tony Fernandes – a strong believer in “leading by example”, he works alongside his team that allows him to get to know them better. Partners – although AirAsia has limited resources, it has been able to fulfill customer’s needs by collaborating with its partners. AirAsia uses authorized travel agencies to cater to travelers that have trouble in online booking. Competitors –AirAsia, being one of the many LCC’s (Low Cost Carriers), have been a threat to the full-service carriers. Publics – Media publics and increased media coverage on LCC’s helped customers understand the no-frills concept. Internal publics are employees who work in a cooperative environment with no problems; CEO Tony Fernandes encourage the pilots to cook breakfast for the engineers to thank them for looking after their aircraft each quarter. Local publics were pleased by AirAsia since they were concerned about long-distance travel due to the 2001 terrorist attacks and AirAsia started flying regional countries to nearby countries. Macro Environmental Factors

Demographic environment – AirAsia started with two Boeing 737s that served the domestic market in Malaysia. It then expanded to include domestic and international destinations. Economic environment – AirAsia also took consideration the changes in income. In 2001, the timing worked to the advantage of AirAsia since Asians were enjoying the benefits of rising incomes and good economic growth and although many could not afford long distance holidays, they were open to the idea of traveling to nearby countries. Tecnological environment – AirAsia responded to the fast growth of internet usage during that time, and so they were able...
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