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This is a presentation on Air Asia I did in class in 2009. I was in charge of the PowerPoint as well as slides 10-15 in the presentation.

This is a presentation on Air Asia I did in class in 2009. I was in charge of the PowerPoint as well as slides 10-15 in the presentation.

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  • Asia Air true competitive advantage is from provide low prices. They should keep focusing on that.However, they need to increase customer loyalty. In order to do this they need use Porter’s model.For example, rewards cards or frequent flyers miles would reduce the buyers power, because they would not shop around with different carriers. In order to suppress other airplane share, they need to expand their market, by flying more routes. They would gain some first move advantages; getting the most profitable routes and securing resources.Also, good government relationship help reduce burreatic cost and reduce some competition by putting up bargertes.
  • As Globalization increase, they will be few and few trade barriers.Instead of competing on your market, you now competing against he world. Also, in the future they will be surge of demand of lfa tickets in emerge ring encomnics. They would demand airplanes tickets to be affordable, however they want they luxuries of full class airplane.Innovation is key to help different your self.

Air Asia Presentation Transcript

  • 1. Air Asia
    Jeff Chan, Anthony Fenech, Ramon Orozco, Wendy Tam, Francis Tolentino, Jimmy Tran
  • 2. Introduction: Overview
    History and Environment of AirAsia
    Review of the current and past problems that the company faced.
    Recommendations to solving the issues
    Where is AirAsia in today’s market
  • 3. Introduction: AirAsia History
    1996 - founded as full service
    2001 - bought by Anthony Fernandes
    2002 - relaunched as low-fare, no frills
    Publicly traded and worth US$226 million
    Joint ventures and cargo transportation
    Spawned imitators and competitorsEnvironment
  • 4. Introduction: Environment
    Early 2000s - emergence of LFAs
    1990s - liberalization and deregulation -Liberalization: relaxation of previous government restrictions -Deregulation: reduce/eliminate governmentcontrol over business or market
    Sept. 11th - low operational and acquisition costs
    2008 - ASEAN
    Today - 50 LFAs and outside competitors coming in
  • 5. Issues/Problem Diagnosis (Past)
    Liberalization of air travel
    The airways between countries are not open, all of them are closely regulated.
    Small companies cannot just start flying to other countries.
    Macro political risk
    Operational Risk – Government policies or actions that inhibitownership or control of local operations.
    Bi-lateral agreements
  • 6. Issues/Problem Diagnosis (Past)
    The Malaysian government didn't want AirAsia to expand their services to neighboring countries.
    Micro political risk
    This only affected AirAsia.
    Operational risk
    Started joint ventures with Thailand, Indonesia, and other countries.
    Integrative techniques
  • 7. Issues/Problem Diagnosis (Present)
    Upcoming low fare airlines potentially taking away from their market share.
    They are the first LFA in their area.
    First comer advantages
  • 8. Recommendation
    Local Responsiveness
    Seating options
    Meal variety
    Flights and Routes
    Global Integration
    “The World’s Best Low-Cost Airline.”
    Differentiated customer service
    People Friendly/helpful
    More efficient boarding
  • 9. Recommendation
    Promotions and Travel Packages
    Prizes / Drawings
    Cheaper Group Rates
    Advertisement
    Guerilla marketing
  • 10.
  • 11. In The Moment
  • 12. In The Moment
    Still a low cost airline leader
    New style of package deals
    Starting of AirAsia X
    Moving from a city to city operation to country to country operation
  • 13.
  • 14. In The Moment
  • 15. In The Moment
    Aggressively buying new planes
    Cash prizes for customers
    Awarded for the World’s Best Low Cost Airline
  • 16. Air Asia’s Strategy
    Question # 6
    • Air Asia’s Competitive Advantage
    • 17. Increase Customers Loyalty
    Porter’s Model
    • Establishing Good Relationship with the Government and Local Suppliers
    • 18. Expansion into new markets
  • Air Asia’s Future
    Question # 7
    Globalization
    More Deregulation
    Environment
    High Demand
    Innovation
  • 19. Conclusion
    1996-founded a full service airline
    In the Past:
    The airways between countries werenot open, all of them wereclosely regulated.
    Bi-lateral agreements
    Presently:
    • Upcoming low fare airlines potentially taking away from their market share.
  • Conclusion
    Recommendation: increase local responsiveness and global integration
    Increase advertisement of AirAsia
    Company is increasing the amount of planes they own
    Awarded for World’s Best Low Cost Airline
  • 20. Questions?
  • 21. Sources:
    Manila Bulletin.com
    Lopez, Edu. Long-Haul budget carrier AirAsia X eyeing increase in revenue for 2009. 9 April 2009. 10 April 2009 <http://mb.com.ph/articles/201935/longhaul-budget-carrier-airasia-x-eyeing-increase-revenue-2009>.
    Class Textbook
    Luthans, Fred and Jonathan P. Doh. International Management. New York: McGraw-Hill , 2009.
     
    Travel Blackboard.com
    Travel Blackboard. AirAsia is World's Best Low Cost Airline! 6 April 2009. 10 April 2009 <http://www.etravelblackboard.com/showarticle.asp?id=90664&nav=51>.