Airasia Business Model Essays On Environment

Macro-Environment Analysis on Airasia and Its Effect on Marketing Decision Making |

2979 WordsJan 15th, 201312 Pages

Macro-environment Analysis on AirAsia and its effect on Marketing Decision Making | Prepared by Gajanayagam Jeyasundram | | | |

This paper looks at a comprehensive macro-economic analysis using PESTEL and how it influenced marketing strategy and initiatives at AirAsia. |

Table of Content | Content | 1.0 | Introduction * 1.1 Company Background | 2.0 | Macro-environment Analysis * 2.1 Demographic Factors * 2.2 Economic Factors * 2.3 Natural Factors * 2.4 Technological Factors * 2.5 Political/Legal Factors * 2.6 Cultural Factors | 3.0 | Conclusion |

1.0 Introduction
1.1 Company Background
Air Asia was established in 1993, and started of as one of the subsidiary for government owned company,…show more content…

The global financial crisis is the greatest economic challenge thus far from AirAsia. It resulted the first ever net loss for AirASia Bhd ever since it went public. (AsiaInc Forum,2009)
2.3 Natural Factor
2.3.1 Oil
Increasing level of fuel price has presented one of the biggest challenges to Airlines. AirAsia is quick to adapt to this by introducing cost cutting measures in other section and also purchase newer aircrafts which are more fuel efficient.

It is currently in the midst of replacing its fleet of Boeing 737-300 to Airbus 320. In fact, AirAsia is currently Airbus biggest client. The new Airbus use 15% less oil then its Boeing predecessor at AirAsia. (AirAsia Financial Report 2011; 2012)

Fuel price will likely to remain to be a huge component of airline cost structure. Hence, in order to compete, AirAsia have to employ cost savings in other areas and enhance revenue from ancillary sources.

Source: (OPEC, 2013)

2.4 Technology
Technology remains the most dominant force that affect the strategy decision making at AirAsia especially in regards to marketing. As a low cost carrier, AirAsia have aggressively and taken huge risk in leveraging on technology advancement in terms of marketing and building a brand. It announces sales for instance mainly through its internet platform. AirAsia was the first airline in the world to have a mobile version of its website. It went ticketless and introduce

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Air Asia Strategic Management Recommendations Essays

5769 WordsOct 2nd, 201324 Pages


MGMT 3347

Table of Contents:

1.1 Industry Identification
1.2 General Environmental Analysis
1.3 The Industry Environment
1.4 The Competitive Environment
1.5 Opportunities and Threats

2.1 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

3.1 Current Strategies
3.2 Future Strategies


An analysis of the External Environment would be done so as to facilitate a direct comparison between the generic elements…show more content…

This then enabled many budget airlines to lease their aircraft at a cheaper rate, which resulted in cheaper ticket prices for their customers (AirAsia 2009). However, the possible impact of fluctuating oil prices in the economy would take a toll on operation costs when fuel prices appreciate (Milmo 2011). Revenue and profitability of the company as a whole would fall if fuel prices become too high. As such economic factors are not within airline companies’ control and are unavoidable, the opportunities would outweigh the disadvantages, presenting further opportunities for them to continue in its expansion across Asia. During economic downturns, there would be an expected demand for affordable low airfares amongst budget-conscious buyers, especially for travellers who are travelling on leisure (Ernst & Young 2012).

The changing societal attitudes and cultures such as growing environmental awareness has implications on the emphasis placed on corporate social responsibility. Furthermore, in order to stay globally competitive, firms now have to consider placing more resources into sustaining competitive advantage with being environmental friendly at the same time. Rapid economic growth has also paved the way for a growing middle class within Asia’s large population, especially so in Malaysia (Ernst & Young 2012). Together with the

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