Partha Pratim Mahanta        Pranjal Pratim Neog                        Dibakar Sinha                Samiron Moran        ...
OBJECTIVES To show the profile of our company i.e. Air Asia. To know the business strategies and operations of AirAsia b...
CORPORATE                         PROFILE                      Our Vision :  AirAsia                 To be the largest lo...
CORPORATE                      PROFILE  Our Corporate objectives :   Leanest cost structure   Maximize shareholders val...
WHERE WE FLY
Air Asia Airlines                               over the years      Dates and years                              Milestone...
Business Strategy and                            OperationsFREQUENT FLIGHTS              SAFETY FIRST            LOW FARE ...
ANALYSIS
SWOT ANALYSIS OF                            AIRASIA Growth in revenue              OPPORTUNITY  Low distribution cost   ...
PORTER ANALYSIS                           OF AIRASIA                                 Potential Entrants Many customers bu...
BCG Matrix analysis of AirAsia               according to the country that their fleets are operating                     ...
FUTURE ANALYSIS
SWOT Analysis15 years Down the Line
STRENGTH                                  WEAKNESSBrand Name                                         Relatively high pri...
FUTURE STRATEGY                                           Layered Adaptive Security Travelling planning                 ...
FUTURE PLANNING To maintain the high level of profitability. 1. Act on the prices :            Expensive tickets to be d...
FUTURE PLANNING Fund-raising   Fresh money could be used to finance strategic projects. Invest in joint ventures.   Ma...
Conclusion The strategies of Air Asia focus more on the management and access of information  rather the creation of irre...
THANK YOU
Air Asia: Case study on Growth, Diversification and Low cost Strtegy
Upcoming SlideShare
Loading in …5
×

Air Asia: Case study on Growth, Diversification and Low cost Strtegy

49,665 views

Published on

A presentation on Air Asia Strategic Management for Past, Present and Future

Published in: Business
3 Comments
26 Likes
Statistics
Notes
No Downloads
Views
Total views
49,665
On SlideShare
0
From Embeds
0
Number of Embeds
32
Actions
Shares
0
Downloads
1,799
Comments
3
Likes
26
Embeds 0
No embeds

No notes for slide

Air Asia: Case study on Growth, Diversification and Low cost Strtegy

  1. 1. Partha Pratim Mahanta Pranjal Pratim Neog Dibakar Sinha Samiron Moran Dipankar Nath Abhijit Ramchiary 25-5, Block H, Jalan PJU 1/37 Dataran Prima, 47301 Petaling Jaya Selangor Darul Ehsan, MalaysiaPartha Pratim MahantaDibakar Sinha CASE STUDY Pranjal Ramchiary Abhijit Pratim NeogDipankar Nath Samiron Moran MBA 3rd SEMESTER SECTION- B
  2. 2. OBJECTIVES To show the profile of our company i.e. Air Asia. To know the business strategies and operations of AirAsia by using different strategy models. To show you the future of Air Asia by SWOT analysis. To show you some of the future planning with reference tofuture growth.
  3. 3. CORPORATE PROFILE  Our Vision : AirAsia To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.Asias leading airline.Our Mission : in 1993 with the dream of making flying possible It was establishedfor To be the best company to work. everyoneHeadquarters : Sepang, Selangor and Malaysia Create a globally recognized ASEAN brand.No. of planes (including Joint ventures) : 78 planesNo. of employees : 3,000 employees that everyone can fly with To attain the lowest cost so AirAsia.No. of customers : 16,000,000 per yearTurnover per annum : $60,000,000 product, embracing Maintain the highest quality technology to reduce cost and enhance service levels.
  4. 4. CORPORATE PROFILE  Our Corporate objectives : Leanest cost structure Maximize shareholders value Safety Our Valuesfor Guests’ satisfaction Passion : Transparency Safety First, Low Fare and No Frills Human Capital Development High Aircraft Utilisation Streamline Operations Lean Distribution System and Point to Point Network
  5. 5. WHERE WE FLY
  6. 6. Air Asia Airlines over the years Dates and years Milestones18 April 2002 AirAsia became Asia’s first airline to go ticketless.10 May 2002 It introduced its first online booking.19 August 2003 It introduced world’s first SMS booking.8 December 2003 It’s first international flight took off to Phuket.8 December 2004 It announced a joint venture with PT AWAIR of Indonesia.21 February & 29 March 2005 Launched Go-Hostel & Go-Car.Year 2007 The lowest cost in the World, 51 000 passengers per day, 54 planes.Year 2008 Launch of Air Asia X.
  7. 7. Business Strategy and OperationsFREQUENT FLIGHTS SAFETY FIRST LOW FARE NO FRILLS  Faster turnaround time  Ticketless service  Improving aircraft utilization  Crew efficiency  Internet booking  Using one type of  Reservations and sales office aircraft for  saving training cost Easy payment channels and authorized travel agents  Nationwide call centers The airlines complies with the It’s fares are The airline ensures fastconditions of the International significantly lower than turnaround of about half-an-hour Safety and is regulated Aviation those of other which is the fastest in the region Malaysian Dept. of Civil by the operators AviationCOST OPTIMIZATION OPERATION GUEST’s CONVENIENCE
  8. 8. ANALYSIS
  9. 9. SWOT ANALYSIS OF AIRASIA Growth in revenue OPPORTUNITY  Low distribution cost Increasing competition  Low operational costs Increasing oil price External Environmental  Attractive ticket price Substitute products  Strong Brand presence in Asia Increasing of maintenance cost  Malaysian government support  Diversification strategy + Joint ventures FactorWEAKNESS Internal Comp- -etence Factor STRENGTH  Liberalization of ASEAN capital routes Does not have its own maintenance,  Asia’s middle class growthrepair and overhaul (MRO) facility.  The “ASEAN Open Skies” allows Receives a lot of complaints from unlimited flights among ASEAN’scustomers on their service. regional air carriers beginning December 2008. THREATS
  10. 10. PORTER ANALYSIS OF AIRASIA Potential Entrants Many customers but high Medium Threat of Newsensibility to prices. Entrants Train, bus and car travelMediumareDevelopment of substitute developing. Industryproducts. Competitors Bargaining Power of Suppliers Buyers Buyers Bargaining Power of Suppliers Rivalry Among Medium Existing Firms  Hard competition between Airbus, Boeing, ATR Full services Air Line might and others. Low Threat of Substituteconsider going low cost. Development of new low-cost Products or Servicescompanies. Substitutes
  11. 11. BCG Matrix analysis of AirAsia according to the country that their fleets are operating Malaysia IndonesiaBrunei  Macau and  Thailand  Singapore
  12. 12. FUTURE ANALYSIS
  13. 13. SWOT Analysis15 years Down the Line
  14. 14. STRENGTH WEAKNESSBrand Name Relatively high price Long-term future  High operation cost Strong management team  Investment cost in high technology Strategy formulation and execution  Strong competition Low cost leader in Asia Excellent utilization of IT OPPORTUNITY THREATS Entrance of other LCCsDemographic advantages  High fuel price decreases yield Growing of Middle Class  Accident, terrorist attack and disaster Partner with other low cost airlines and affect customer confidence High fuel prices will squeeze out  Aviation regulation and governmentunprofitable competitors policy Air Asia will get inherent advantage  Increase in operation cost in producingin long distance travel value-added services Developed innovation technology  System disruption due to heavily reliance on online sales
  15. 15. FUTURE STRATEGY  Layered Adaptive Security Travelling planning  “Equivalent Visual” Operation Reservations and ticketing  “Super Density” Airport Frequently flyer program Operations Campaign management  Airborne Information Net Customer care  Yield Management System (YMS) Business intelligence  Computer Reservation System (CRS) Enterprise Resource Planning System (ERP)
  16. 16. FUTURE PLANNING To maintain the high level of profitability. 1. Act on the prices :  Expensive tickets to be distributed when the demand is high (week-end).  Prices increasing according to the demand.  Cheap tickets available during the middle of the week. 2. Act on the cost :  Offer more on board services/ products to the passengers.  Taxi booking service  Internet WIFI access on board Newspapers  Place advertisings on the plane’s cabin
  17. 17. FUTURE PLANNING Fund-raising  Fresh money could be used to finance strategic projects. Invest in joint ventures.  Maintain international development across Asia in association with local budget airlines.  It would increase the airline’s offer. Diversification  Acquire new know-how in a view to offer more service to the consumer.  E.g. To take over an online travel agency.
  18. 18. Conclusion The strategies of Air Asia focus more on the management and access of information rather the creation of irrelevant airline services. For this reason, Air Asia has developed a unique set of guiding principles - simplicity, cost-efficiency and effectiveness. Total commitment to these principles makes the airline services of Air Asia very user-friendly to its customers. SWOT analysis of AirAsia with reference to sustainability and future growth shows more opportunities than threats. AirAsia is fully determined to exploit these opportunities and convert more threats into opportunities for success.
  19. 19. THANK YOU

×