Growth and Expansion of Air Asia

Topics: AirAsia, Low-cost carrier, Airline Pages: 18 (5261 words) Published: June 24, 2013
Summer project|
Growth and Expansion of Air Asia|
Will the provision of low cost for customers by Air Asia will help the business to grow further in future organically as well as inorganically ?| |
By Yuvraj Rattan Nangpal|
Enroll. Number - A1833311100 Amity International Business School |

Year– 2012
Word Count - 4592

Contents

1) Abstract……………………………………………………………………………………………………..3 2) Growth and Evolution………………………………………………………………………………..4 3) Research Question……………………………………………………………………………………..5 4) Background………………………………………………………………………………………………..5 5) Introduction……………………………………………………………………………………………….6 6) Methods of gaining profits………………………………………………………………………….8 7) Ways of managing low cost………………………………………………………………………..9 8) SWOT analysis………………………………………………………………………………….………11 9) AirAsia’s Marketing Strategy…………………………………………………………………….12 10) Marketing Mix………………………………………………………………………………..13 11) The Inorganic growth……………………………………………………………………..18 12) Ansoff Matrix………………………………………………………………………………….21 13) Porter Generic Strategies……………………………………………………………….23 14) Conclusion……………………………………………………………………………………..24 15) Recommendations…………………………………………………………………………26 16) Bibliography…………………………………………………………………………………..27 17) Appendices…………………………………………………………………………………….29

1. Abstract
The essay is about the reason for growth for AirAsia. To be precise it is focused on the research question, “Will the provision of low cost for customers by Air Asia will help the business to grow further in future organically as well as inorganically ?” Initially, I started my research about its history and background, and displayed on this essay by using books and internet articles. This research helped me out mainly in context to prove my thesis about the essay. Basically, it looked at the growth first in Malaysia and then when it went to start merging with other companies. By looking at the SWOT analysis, I was able to determine the pros and cons that the business have or could have in future. Observing the marketing strategies and by looking at the reasons about its growth; I came to know various methods and techniques that this company has used to show its remarkable gaining of profits. Even the Porter’s generic strategies focused upon the usefulness of having a low cost business which this company does. The ideas of promoting the business was looked into detail to show how the business was expanding rapidly. Therefore, it is recommended that they should keep go on with their strategies they use but also look the measures to solve the drawbacks they are facing at the moment. WORDS - 221

2. Growth and Evolution

2.1 What is Organic and Inorganic Growth ?
The business develops itself by two ways either by merging with other companies in order to be more diverse or to just gain profit in the market. This is called Inorganic growth of a business, this is usually done for expansion in the market round the world. Even taking over a company as well is also regarded as inorganic growth, this happen where the profitable business seeks to buy a company usually which is going in a loss or is unable to stand as a business in the market at all.

Another way the business grows is by increasing turnover of their existing business. This is called Organic Growth. This is usually done in order to sustain in the business market. The business deals with emphasizing internally to be competitive in the market and weather it can provide products and services to consumers fast, easy and effective. The organization runs more on networked links rather than hierarchal. The decision making is done on delegation basis. The management is improved thereby improving the brand image of a business.

However, Air Asia is dealing with both types of growth as by merging with Awair and...

Bibliography: 1. Welcome to AirAsia.com... Now Everyone Can Fly. Web. 27 May. 2012. <http://www.airasia.com/>.
2. Paul, Hoang. Business and Management. [S.l.]: Ibid, 2007. 500. Print.
3. Understanding Marketing Mix. Www.codewit.info. Web. Nov.-Dec. 2010. <http://www.codewit.info/articles/onwutalobi31217.pdf>.
5. "Thai AirAsia Summary | BookRags.com." BookRags.com | Study Guides, Lesson Plans, Book Summaries and More. Web. 6 July. 2012. <http://www.bookrags.com/wiki/Thai_AirAsia>.
6. Yee, Leong Hung. "Listing to Drive AirAsia X Expansion." The Star Online: Business - News. 14 June 2010. Web. 4 July. 2012. <http://biz.thestar.com.my/news/story.asp?file=/2010/6/14/business/6454481&sec=business>.
7. "AirAsia." Www.skcs.com. Web. 11 Oct. 2010. <http://www.skcs.hk/AirAsia.pdf>.
8. "Organic Growth vs Inorganic Growth?" WikiAnswers. Answers, Feb.-Mar. 2009. Web. 09 July 2012. <http://wiki.answers.com/Q/Organic_growth_vs_inorganic_growth>.
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