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

2979 Words Jan 15th, 2013 12 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,
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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