determine strengths and weaknesses of the industry. Those five forces are now used to determined Air Asia’s strengths and weaknesses which are shown as below: Threat of Entry There is a high barrier entering airlines industry since it requires high capital to set up everything such as purchase or lease air craft‚ set up office‚ hire staffs‚ and etc. Thus‚ this has reduced the treat to Air Asia. Moreover‚ brand awareness is quite important in this industry. Thus‚ to enter this industry not
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{text:bookmark-start} {text:bookmark-start} Background {text:bookmark-end} {text:bookmark-end} A successful example of a Malaysian no frills airline is Air Asia. Revolutionized and Reinvented by Tony Fernandez in 2001. It is based on the low-cost‚ no-frills model of the US carrier Southwest. The concept of Air Asia is based on the belief that demands for short-haul air transport is price flexible. That means‚ if prices for flights are being reduced‚ more people will fly. Traditionally‚ airline concepts are based
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Marketing Principles Assignment one Air Asia Section 101 Ibrahim K. Al-Zuwaid 200800196 Company Case Q. What are the micro and macro environmental factors that have contributed to the early success of Air Asia? Micro factors: 1. Fernandes (the CEO of Air Asia) contributed heavily to the success of Air Asia. He was seen working alongside with the employees as a baggage hander to get to know his staff members and to listen to the customer’s wants and needs. Mr. Fernandes
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Besides that‚ a SWOT (Strength‚ Weakness‚ Opportunities and Threats) ‚ the target market and the 4Ps (Product‚ Price‚ promotions and place )for the particular company was investigated .Based on those finding ‚appropriate suggestions were made to overcome problems that occur in order to increase the company’s standard as well as the branding. Background AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts‚
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over long periods of time. AirAsia approaches to prevent this occurring and to generate continued growth is to frequently re-assess its strategy so that they build strong businesses in the attractive industries of the future Company overview - Air Asia Berhad AirAsia’s leading airline was established with the dream that everyone can fly. Since 2001‚ the company has swiftly broken travel norms around the globe. It has risen to become the world’s best. With a route network that spans through more
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MANAGEMENT MGMT 3347 Table of Contents: 1.0 EXTERNAL ANALYSIS 1.1 Industry Identification 1.2 General Environmental Analysis 1.3 The Industry Environment 1.4 The Competitive Environment 1.5 Opportunities and Threats 2.0 INTERNAL ANALYSIS 2.1 The Firm’s Resources: Tangible and Intangible 2.2 Capabilities Identification 2.3 Core Competency Analysis 2.4 Value Chain Analysis 2.5 The Firm’s Weaknesses 2.6 SWOT Analysis 3.0 STRATEGIES AND RECOMMENDATIONS
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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
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Chapter 13 Communicating Customer Value: Personal Selling and Direct Marketing GENERAL CONTENT: Multiple-Choice Questions 1. These employees are well-educated‚ well-trained professionals who work to build and maintain long-term customer relationships by listening to their customers‚ assessing customer needs‚ and organizing the company’s efforts to solve customer problems. Who are these employees? a. Managers. b. Missionary salespeople. c. Salespeople.
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Air Asia: Strategic management report Intoduction Air Asia was founded in 1993 and has since grown to be one of the biggest airlines in the world. It initially operated in Malaysia and currently operates in over 25 countries (Ricart and Wang 2005). It began operations in October 1996‚ operating out of Kuala Lumpur as its central location (Ricart and Wang 2005). The airline was bought by Tune Air in 2001 for one ringgit‚ the equivalent of 0.26 US cents‚ at a time when the company had $10.5 million
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aviation industry‚ who mortgaged his home to purchase and finance a debt-ridden firm which at that time only owned two planes. Its formidable competitor‚ an experienced world-class national carrier supported by the government‚ posed an immediate looming threat to its survival. The barrier to entry was indeed high. It was an against-all-odd‚ David versus Goliath scenario. The situation was further compounded by the fact that AirAsia’s new business model was put into operation only mere months after the
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