Pest Analysis (Air Asia) - Download as PDF File .pdf), Text File .txt) or read 01 .pdf. Uploaded by. khaleeluddinshaik. PURCHASE OF AIRBUS A NEO. AirAsia Berhad- PESTLE Analysis of the Low Cost Carrier in the Asia - Download as PDF File .pdf), Text File .txt) or read online. -. of 29 Executive Summary AirAsia is a famous company in Asia and can be Next, the analysis of SWOT come out with critical strategies that must be applied by AirAsia in order to perform better in future. .. reportpdf> [15 September ] AirAsia () Annual Report [online] available . Download file.
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In this review, SWOT analysis of both Malaysia Airlines and AirAsia had been Download full-text PDF. A preview of the PDF is not available. Results 1 - 30 Essay on Pest Analysis on Airasia - Words | Major Tests . AIRASIA PEST ANALYSIS EPUB DOWNLOAD - Pest Analysis (Air Asia). AirAsia load factor development: 2Q to 2QSource: Centre for Asia Download It will then apply a SWOT frameworkto analyse the Strengths, . http ://compgarbullkunsbar.gq
AirAsia sets prices on time basis, depending on seat availability and demand. Psychological pricing Psychological pricing is a pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product.
Another aspect of psychological pricing is reference prices, which are prices that buyers carry in their minds and refer to when they look at a given product. This is to imply that the same travel route with AirAsia is cheaper or more economical than the other three airlines.
Promotional pricing Promotional pricing is temporarily pricing products below the list price and sometimes even below cost, to increase short-run sales. This is to create buying excitement and urgency among the customers during that period. Geographical pricing Geographical pricing is adjusting prices to account for the geographic location of customers. There are many forms of geographical pricing, like FOB-origin pricing, uniform-delivered pricing, zone pricing, basing-point pricing and freight-absorption pricing.
For the case, freight-absorption pricing is used. Freight-absorption pricing is a geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business. AirAsia may absorb all or part of freight charges, so its prices become lower and this attract more customers. If it gets more business, its average costs will fall and more than compensate for its extra freight cost.
So, AirAsia can hold on to increasingly competitive markets. International pricing International pricing is deciding what prices to be charged in the different countries in which a company operates.
That is because of different cost in different countries. This is one way that they as a company want to minimize cannibalizing its premium offering. Besides that, Tiger Airlines also want to have a flying to popular tourist destinations such as Bali, Hong Kong and can flying to destinations within a four-hour reach of Singapore.
It also will continue to serve as feeder airline to SIA and will not offer budget fares. Besides that, Valuair aims to target passengers who desire some frills like aerobridges and leg room and hope to fly all-economy flights.
In addition, Valuair also will not have price tiers but rather employ fare categories. How should AirAsia respond to its competitors in the discount airline market? Evaluate its package deal and corporate market initiatives and recommend other marketing strategies for the airline.
Due to this mayhem AirAsia had to make security measure to secure the security of the flights. Government decided to take drastic measures due to this issue and highlight the Civil Aviation Offences Act Act Besides that, the flu outbreak worldwide has seriously affected the whole world causing serious damage in US, Europe and Asia.
In Malaysia, a large flu pandemic subtype H1N1 has made an outbreak, therefore many airports had been closed due to this affect. Economic Analysis In , the world hardly managed to cope with H1N1 influenza pandemic. Even so the www.
AirAsia is Asias largest low cost carrier with the widest route connectivity and the largest customer base. Where else while the economic is going through recession AirAsia managed to make a higher profit, this may due to their low cost carriers which passengers favorably choose.
Air Asia is one of the businesses that have successfully adopted cost leadership through operational effectiveness and efficiency. The cost advantages have enabled Air Asia to become the Asias leading low fare airline. Air Asia has successfully positioned itself in customers mind. Customers approximately 14million passengers travelled AirAsia in this is because the customer pay less compared to other airlines. Managing fuel effectively and increase in employment is an important factor despises International global credit crisis has resulted in increasing unemployment and global trade will shrink by 9 percent in Employment rate has constantly increased from to employees in the year as stated in the financial statement.
This benefits the financial performance of AirAsia by increasing the operating profit margin Social-culture analysis Air Asia operates with many diversified regions in Asia, all of them are different in their own unique way and this allows AirAsia to attract their passengers throughout Asian countries with has many diverse languages and cultures.
Related to the difference of the nature the demographic factor helps AirAsia to manage their customers effectively. Just as any other airline AirAsia also accommodates to many different classes such as economy class, hot seat class, standard seats class and premium economy class which is equivalent to a business class seat.
As worlds best low-cost airline and AirAsia managed to satisfy their customers just like any other airline would do. Besides that, Asian business values cooperation rather than individualism.
This can be seen in the reliability of the different aviations in many others countries towards AirAsia. Branding and trends are important for an organization such as AirAsia to promote their services. Government support for national carriers and minimal restrictions on migration is pertinent for the growth of an airline.
Additionally, security controls should always be maintained to reflect the integrity of the airline.
On the economic front, the increasing regional urbanisation is expected to lead the development of new urban centres, creating new destinations for regional travel.
The increasing economic growth rates of the ASEAN region would propel the aviation industry to greater heights. As such, the aggressive promotion of the regional tourism industry would further boost economic growth and encourages regional travel. Cottage industries thrive as low fares and route connectivity break down national barriers and lower the costs of distribution and travel AirAsia, Annual Report The introduction of widely available low air fares in Southeast Asia greatly reduces the cost barrier to air travel and creates a competitive transport substitute for the ASEAN population.
The best medical care and educational institutions are placed within easy reach, helping nurture the bodies and mind of a burgeoning population AirAsia Berhad, Annual Report Families are strengthened as get-togethers become more common and an ASEAN ethos is inculcated due to the knitting of diverse cultures into a colourful regional tapestry AirAsia Berhad, Annual Report AirAsias success in generating revenue from ancillary products and services lies in harnessing the power of its e-business strategy and web-based Customer Relationship Management Air Asia Berhad, Annual Report AirAsia believes that by harnessing the power of cyberspace, the social media provides a channel of communication for low fare promotions, new route launches, contests, flight schedules updates and guest support services.
Additionally, it creates a platform to ensure the brand image of the group remains relevant through its website and varied social media networks.
Environmental efforts by organisations have constantly been key issues that require to be addressed constantly. AirAsia believes investment in the latest technology and efficient use of aircraft which are more fuel efficient increases substantial savings with group-wide operations. Collaboration with airports to adapt and develop existing facilities is required to minimise airport capital expenditure and reducing the environmental impact.
The No Frills Service is designed to reduce waste in all aspects of its operations. However, issues pertaining to noise pollution controls and carbon emissions are issues that need to be addressed by the aviation industry. The Five Competitive Forces that Shape Strategy is pertinent to comprehend large and sustained differences in the average profitability of industries and the implications for strategy Porter, Porters five forces diagnostics, consisting of the bargaining power of buyers, the bargaining power of suppliers, the threat of new entry, the threat of substitutes and the intensity of rivalry is analysed to understand AirAsias strategic positioning and competitive advantage within the industry.
The global financial crisis and recession has impacted tremendously on the airline industry. With the threat of bankruptcy with most airlines in the Asia-Pacific region and globally, merger and acquisitions are becoming prominent to remain cost-effective in the industry. Presently, with the continuous growth of online booking sites, consumers have varied options to compare and contrast services that are presently available in the market.
As the industry is price sensitive, consumers constantly seek cheap deals which invariably lead to intense price competition between the industry players Datamonitor, As brand loyalty is low, there are low inherent switching costs in this industry. However, in an attempt to increase their power, legacy airlines have introduced loyalty schemes to attract customers to their service and ensure loyalty. A customer who uses the service of a competitor will lose the benefits of the loyalty scheme, which is equivalent to the incurred switching cost Datamonitor, Presently, tough economic conditions has enabled AirAsia to attract a new segment of customers, specifically business travellers seeking cost reductions, as rising unemployment and lack of job security may lead to customers avoiding expensive leisure flights.
Price sensitivity serves to increase buyer power. However, the consistent growth and the expanding route network of AirAsia over the years, indicates the bargaining power of buyers to be moderate. With respect to the duopoly that presently exists in aircraft manufacturing and no viable substitute for jet fuel has been discovered, AirAsia is very much reliant on the supply of Boeing and Airbus.
The substantial costs that are presently incurred by AirAsia include fuel, aircraft and staffing costs. At 31 December , the fleet composition of AirAsia amounted to 84; Boeing 14 aircrafts and Airbus A 70 aircrafts.
The formation of Vietjet AirAsia makes Vietnam AirAsias fourth country base, following Malaysia, Thailand and Indonesia and would enable the airline to achieve network size economies through code sharing, attain scale economies in the purchase of fuel and aircraft Datamonitor, Although these collaborations may serve to increase the industry players buying power, the supply of aircraft, aviation fuel and a sufficient workforce is pertinent to the airline industry.
As such, the bargaining power of the supplier is assessed to be strong. The airline industries in most countries globally, specifically in the ASEAN region have been deregulated which has caused entry barriers for new entrants to be low.
AirAsia has been able to negotiate operating arrangements with varied airports, such as enter and exit routes, and set fares and flight volumes according to market conditions. This may prove to be enticing for new LCCs to penetrate the market. Nevertheless, there is a large amount of bureaucracy involved in setting up a new airline.
The lengthy process of obtaining the aircraft operating license would defer the generation of revenue for prospective airlines.
Additionally, sufficient resources are required for staffing costs and fleet procurement. Due to the growth in air traffic in recent years, congestion at many airports is inevitable, specifically in major hubs Datamonitor, However, AirAsia has surpassed expectations and thrived in all the challenges on becoming the lowest cost LCC in the region. As an established LCC airline, AirAsia would hold the monopoly over prime time slots at certain airports, which makes it harder for new airlines to infiltrate, as these new entrants would be restricted to offer flights at off-peak times or further away from popular destinations Datamonitor,