In this study case of Air Asia, low price was the smartest marketing strategy Air Asia used. The company has done its research and found that there were a huge mass middle-class people that love to travel by plain. They targeted these people and offered them convenient and affordable air travel experience. By this approach, the company has satisfied its slogan “Now everyone can fly”. Macro Environment Analysis for AirAsia
Macro factors includes Demographic, natural, technological, cultural, political and economic factors. The factors of Macro-environment suggest that there is a huge scope of growth for AirAsia in Asia. The huge population with rise in middle class and a lot of disposable income together with the absence of affordable forms of transportation post a high demand for AirAsia as a low cost airline. It is also anticipated that due to the rapid urbanization trends the air travel market will continue to grow at a fast pace. The geographical structure of Asia which is archipelago will also contribute to the air transport. Example: between East and West Malaysia there is no other alternatives mode of transport other than by air.
Micro Environment Analysis for AirAsia.
The Micro environmental factors include: organizations, suppliers, customer market, the intermediaries and competitors. The micro- environmental analysis is done using the Porter’s Five Forces. By using this model, it can be concluded that the overall supplier power is quite high due to limited number of suppliers and monopolization of the industry (by only Boeing and Airbus). But, relatively poor performance of airplanes in the recent past has countered this. The global crisis has led to reduction of planes up gradation and limited new entrants into the market. The buyer power is reasonably high: this is due to the access to price and other information through internet and mobile phones to potential customers allowing them to find cheap and affordable prices more easily. Additionally,...
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