Strategic Analysis Of Airasia

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Executive Summary
This report examines the strategic analysis of AirAsia and its ability to sustain it competitive advantage as Asia’s leading low cost carrier (LCC) (Yashodha, 2012). The following pages demonstrate how the diverse business level, corporate level and competitive strategies of AirAsia allowed it to be the organisation that successfully broke through to the under-served market.

The following document shows research that exhibits critical theories through using the SWOT, Porters five forces and the PESTLE analyses’, that the competitive environment of the airline industry can and ultimately has led to AirAsia’s success.

Furthermore, there is evidence provided to show the successful growth of the organization, how this was achieved and how it has been maintained to date. In addition, the international strategies that were implemented display the foresight of the airline (Yashodha, 2012). Included in these studies are the external factors that also attributed to the success of AirAsia and the air line industry in general – Liberalisation being one of these key external factors. The study is concluded by showing how all of the factors analysed through the range of internal and external factors can attribute to the rise and fall of an organisation, and how every little aspect can make a huge difference.

AirAsia is a low-cost air carrier providing services to over 100 destinations in 22 counties. AirAsia has taken on the strategy of cost leadership by reducing the cost of operations and passing these savings onto the customers with low ticket prices. After being purchased by Tony Fernandez, the company relaunched as a no-frill airline – promoting budget travelling. After beginning with a couple of ai...

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... has the ability to be able to strive on becoming the commuter of choice by building relationships with other brands (Yashodha, 2012). Then, through excelling in this, the organisation would be able to utilise the extra resources and begin to concentrate, train and excel in sales. Then with the success of this, they could branch into HR and employee training across the board.

It is evident through the research that Air Asia's success is due to its willingness to take risks using innovative strategies to reduce costs while maintaining profitability. The organisation has taken its resources and used them in a way that has really supported and complemented the brand, for example, technology. It has also utilised its surrounding market and environment to be able to adopt new strategies that has allowed them to be cost effective and operationally effective.

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