Case Study - Air Asia
Identify the competitive advantages of Air Asia as a low cost carrier.
Air Asia has a number of competitive advantages as a low cost carrier that fall into the following general categories; low cost operations, efficiency of operations, proven business model and management expertise and finally a distinctive corporate culture.
Low cost operations:
Air Asia has gone to great lengths to ensure all of their operational costs are kept to an absolute minimum, and have passed on the savings to customers in the form of cheap ticket prices. One of their unique ways of doing this was by not ticketing through travel agents or other intermediaries. This reduced profit sharing and kept ticket prices as low as possible for …show more content…
Competitor Analysis – Kotler and Miles & Snow
According to Kotler’s strategies for competitive advantage, a company can take on one of 4 approaches to competitively position themselves in the market, a leader, a challenger, a follower and a nicher. In Air Asia’s case they started as a follower and then became a challenger as they challenged conventional wisdom, found a point of differentiation and then once they became bigger tackled the competition by expanding market share and the market as a whole. Initially their competition was predominantly with Malaysian Airlines who attempted to shut them down by slashing prices on ticket sales by 50%. Labelled as “state sponsored economic terrorism” by Fernandes the company eventually backed off and allowed Air Asia to grow considerably.
According to Miles and Snow’s typology of competitors, there are 4 main types, namely prospector, analyser, reactor, defender. As a challenger to Malaysian Airlines, Air Asia was able to be a prospector as they had first mover advantage on launching new products and entering new markets. This strategy was not only preferred, but rather essential as being a start-up company they had to differentiate themselves in order to compete. Malaysian Airlines for example is more of an analyser in the market due to their already
-
Westcoast Air: Case Study
877 Words | 3 PagesWestcoast Air Case Study Question 1 - Operating income per flight The operating income can be calculated by looking at the revenues generated and deducting all of the variable and fixed costs that have been allocated per flight (Elliott and Elliott, 2010). This is shown in table 1 with figures founded to whole dollars. Table SEQ Table * ARABIC 1: Operating income per flight Passengers 175 Ticket price (1 way) $325 Revenue per flight $56,875 Variable/allocated costs Fuel $14,000 Food…
-
Case Study: Independence Air
2472 Words | 10 PagesMBAA 642 | INDEPNDENCE AIR | ASSIGNMENT 9 - AIRLINE CASE STUDY | | Alois Nyandoro | 3/14/2013 | Dr. Bruce Ellis | A brief history Independence Air started as Atlantic Coast Airline (ACA) on 15 December 1989. It operated as a feeder service as United Express for United Airlines and Delta Connection for Delta Airlines. United withdrew from the contract after ACA labor and management objected to a request for concessions for a lower fee-for-departure agreement. Consequently, ACA reinvented…
-
Sealed Air Case Study
1047 Words | 5 PagesSealed Air Case Study Date:11/14/2011 Section:Monday Ziyu(Vivien) Gong A20269093 Wenxin (Chloe) Liu A20267862 Xinyun (Amy) Qiu A20275778 Yingqiu (Chris) Zhu A20272743 Chongliang (Leo) Zhuge A20266231 Ⅰ EXECUTIVE SUMMARY Sealed Air Corporation is the market leader in coated air bubble products in North America and even Europe. In 1981, the case outlined the most difficult business challenge: the rapid displacement of coated bubble by a technologically inferior yet inexpensive uncoated…
-
Case Study : Air Gun Case
2085 Words | 9 PagesAir Gun Case Situation Analysis: Airgun Products, Inc. (API) is an air gun retailer that mainly sells directly to consumers. We sold our products through our catalog-based phone order sales channel from 1989 to the mid-1990s. In 1995, we decided to take our sales to the internet and created a website. Our product mix included air rifles, pistols, scopes, mounts, pellets, targets, accessories, and other air gun-related items. The air guns we sell either fire steel or lead BB’s or plastic pellets…
-
Air Tel Case Study
4799 Words | 20 PagesAirtel has had to gear itself to meet competition in various segments – basic services, long distance(LD), International Long Distance (ILD), and Internet Service Provision (ISP).It has forayed into mobile service provision as well. Objective of study are: What marketing strategies the Airtel is implementing to defend and increase the market share. To find who are the competitors of the Airtel and the market shares of the competitors and what strategies Airtel is implementing to beat its competitors…
-
Branding Satisfaction in the Airline Industry: a Comparative Study of Malaysia Airlines and Air Asia
10409 Words | 42 Pagesin the airline industry: A comparative study of Malaysia Airlines and Air Asia Kee Mun, Wong* and Ghazali, Musa Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia. Accepted 23 March, 2011 Brand is crucial in differentiating the superiority of products or services over others. This is an exploratory study examining the differences in brand satisfaction between Malaysian Airlines (full service airlines) and Air Asia (low cost airlines) in Malaysia. 350 usable…
-
Essay on Sky Air Case Study
1046 Words | 5 PagesSky Air Inc.: Business Ethics Case Brock A. Reeves University of St. Thomas Summary of the Case Study Sky Air Inc. was an airline with its head office in Idaho Falls. It came into being in 1986. Its founder, Samuel Kaplan, was once an air force mechanical engineer. Apart from his engineering background, Mr. Kaplan was also a talented golf player. Having been born and brought up in Idaho Falls, Kaplan found out that there was a gap in the airline industry there. He believed that the region…
-
Case Study: Air Asia
1648 Words | 7 Pagesquite competitive with multiple players and various elements effecting the industry environment. AirAsia has developed a specific set of resources and core competencies that it has exploited in order to become the leading short-haul LCC in South East Asia. AirAsia’s strategy employs cost and efficiency optimization by utilizing its key resources; thus, possessing capabilities necessary for success. AirAsia’s tangible resources, including its fleet and hubs, enhance the company’s low cost capabilities…
-
Case Study Hatch Asia
612 Words | 3 PagesTitle: Hatch Asia Time 2001 Summary: • Statement of Objectives To formulate a strategy that will help Hatch Asia attain its objective and will help them avoid the happening of the same crisis again • Central Problem The need to develop a strategy that will help them become a strong company while attaining its objectives. • S.W.O.T. Analysis Strengths It is a well funded business incubator for Asian high technology businesses The company have a wide scope of services and have a unique,…
-
Ryan Air Case Study
4068 Words | 17 PagesRyan Air Case Study Strategic Management Names: Table of Contents Step 1: Identifying the positioning questions 1.1 Summary of the case pg. 2 1.2 Main Questions & Problems pg. 3 1.3 How was the strategy developed? pg. 3 Step 2: Gathering & analyzing the facts 2.1 Ryan Air Environment Analyses pg. 3 2.2 Ryan Air Strategic Capability Analyses pg. 5 2.4 Ryan Air Competitive Strategy & Business Model Analysis pg. 5 2.5 Ryan Air Stakeholder expectations & purposes Analysis…
More about Case Study - Air Asia
-
Westcoast Air: Case Study
877 Words | 3 Pages -
Case Study: Independence Air
2472 Words | 10 Pages -
Sealed Air Case Study
1047 Words | 5 Pages -
Case Study : Air Gun Case
2085 Words | 9 Pages -
Air Tel Case Study
4799 Words | 20 Pages -
Branding Satisfaction in the Airline Industry: a Comparative Study of Malaysia Airlines and Air Asia
10409 Words | 42 Pages -
Essay on Sky Air Case Study
1046 Words | 5 Pages -
Case Study: Air Asia
1648 Words | 7 Pages -
Case Study Hatch Asia
612 Words | 3 Pages -
Ryan Air Case Study
4068 Words | 17 Pages