AirAsia

nts Introduction 1 Price in marketing 1 Pricing strategy-Cross Subsidy 1 Ethical issue in pricing-Predatory Pricing 2 Advantages of predatory pricing 3 Disadvantages of predatory pricing 4 Example in pricing 4 Summary of example 7 Conclusion 7 Reference 7 Introduction Price is all around us. You pay accommodation fee for your hostel, tuition for your education. You pay transportation fee such as airline, railway, taxi, and bus. And the bank charges you interest for the money you borrow, the

entry depends on the strength of- i) Customer has little brand loyalty. If consumers of Airasia do not have brand loyalty, then the strength of the threat of new entrants is very high. The high numbers of competitors in the industry also decrease Airasia’s customer loyalty. Most of the travelers prefer low cost. New competitors which want to come in the industry have to spend little to compete with Airasia. ii) High capital requirement. The industry of airline needs large volume of start-up capital

http://tonyfernandesleadershiptalk.blogspot.sg/ http://economictimes.indiatimes.com/slideshows/people/the-story-of-tony-fernandes-and-airasia/tony-fernandess-appetite-for-taking-risks-had-him-move-into-airline-industry/slideshow/18608896.cms Tony Fernades is known as the first person who introduced budget no-frills airline to Malaysia. Through AirAsia which he is the founder and CEO of, he ensures that “Now, everyone can fly”. Tony Fernades has taken many risks such as mortgaging his own house when

Case Analysis on the Article, ¡§Competitive Turbulence in the Airline Industry¡¨ (Segmentation, Targeting and Positioning) EXECUTIVE SUMMARY Airline industry has 4 sectors identified: Full-service, Budget, Limited-service, Premium-service Segmentation and Targeting: Psychographic, Behavioral, Geographic and Demographic Positioning: Value proposition matrix (more for more, less for less, etc.) Conclusion and Recommendations: „« SIA in marginal value proposition

Varandani, S. (January 31, 2015) AirAsia Flight 8501: Captain Was Out Of His Seat When Co-Pilot Lost Control Of Plane, Sources Say. International Business Times. Retrieved from http://www.ibtimes.com/airasia-flight-8501-captain-was-out-his-seat-when-co-pilot-lost-control-plane-sources-1801348 Karimi, F., & Jamaluddin, M. (February 08, 2015) Divers pull out more bodies after AirAsia jet crash, bringing total to 100. CNN Retrieved from http://edition.cnn.com/2015/02/08/asia/airasia-disaster/ Ballve, M. (October

airlines may take off in Asia to take care of the expanding of the buyer demand taking after the example of low-priced transporter AirAsia. Besides, the airline, such as Singapore airlines, they decided to launch the air asia as they see the achievement of AirAsia. They know how huge of the business area is and how great the chance is in Asia. The travelers may not pick AirAsia in the event that they are to travel long flight. They will favor airline like MAS which give better services. Porter 5 forces

In week two we covered topics that explore methodologies that can be used to analyze the industry that a company is in. In chapter 3 of the text some of the main topics include industry profitability and attractiveness which can be analyzed by using “Porter’s Five Forces of Competition Framework” (Grant, 2010; pg 69). The five forces include competition from substitutes, new market entrants, and established firms as well as the power of buyers and suppliers. One of the main topics with this framework

Malaysia. (www.tourism.gov.my) Threats Low Cost Carrier The current market, Malaysia Airlines does not have a top two position in any market beside domestic Malaysia. But unfortunately majority of the domestic routes has been covered by AirAsia due to low cost travelling. Furthermore, there is another low-cost airlines (Mandala Airlines) which operating daily flies directly to Jakarta from Kuala Lumpur, Medan to Singapore. There is an increase on the Mandala Airlines, due to historical links

The budget airline industry in Singapore presents an interesting situation for analysis. It has 3 main local players plus a foreign player, namely Valueair, Tiger Airways, Jetstar Asia Airway and Airasia but Jetstar Asia Airways has effectively merged with Valueair. There are also possibilities of more foreign budget airlines operating in Singapore, and big airlines may also slash their prices to compete with the budget airlines. The higher fuel price, terrorist threat and restrictive govt policies

Q1.Analyze the current situation facing MAS and Air Asia using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place. The goal of an organisation is to reach and achieve optimal purpose. They want to make the most out of their atmospheres and existing environments in order to their accomplishment. External factors are the one that affect an organization indirectly, such as: •Political •Social-cultural •Technological •Economical