Air Asia Essay

6606 WordsJun 7, 201227 Pages
AIR ASIA 1.EXECUTIVE SUMMARY Strategic management has played a key role in the success of many business organizations in the world including airlines and AirAsia is no exception. Commencing in 1996, within fifteen years, AirAsia managed to expand its operations into another ten countries. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. This paper will look at the award winning Malaysian low cost carrier- AirAsia’s by analyzing its strengths and weaknesses using strategic tools such as PEST analysis, Michael Porters Generic strategies, SWOT matrix analysis, Porter’s Force Model Competitive Forces Model, BCG Matrix , Internal and External Factor evaluation Matrix and Competitive Profile Matrix and Financial Analysis and recommend the relevant strategies for adoption to pursue its continue its competitive differentiation and profitability. The paper also throw some insights into the Blue Ocean Strategy concept which is used by AirAsia as one of its strategic moves. 2.INTRODUCTION Competition in the airline industry is very intense and growing rapidly. The airlines are using several strategies to compete with one another in the industry. Airline companies need to identify their strategic management to achieve their vision and mission and AirAsia is no exception. 2.1 Background AirAsia was established in 1993 . The company commenced its operations on 18 November 1996. It was originally owned by the government -link company , DRB- Hicom , a heavily –indebted airline company purchased by Tune Air Sdn Bhd , a company belonged to former Time Warner executive Tony Fernandes's company . By the year 2002 Tony Fernandes made AirAsia a profitable company and launching new routes from its hub in Kuala Lumpur

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