Strategy and the management changes Assessment Task 1: Individual Case Analysis Length: 1200 words (references not include) Format: Case Analysis The objectives of the analysis are to develop your...

Air Asia – Case analysis
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Table of contents
Introduction ............................................................................................................................... 2
Business environment of AirAsia ............................................................................................. 3
Recommendations for AirAsia ................................................................................................. 5
Conclusion .................................................................................................................................. 7
Reference .................................................................................................................................... 8





Introduction
Air Asia is one of the most successful low-cost airlines and has a strong reputation in the
aviation industry. Air Asia has always outperformed its competitors by differentiating itself from
other airlines in aspects of low cost carrier, thus giving it a competitive advantage. The
management body of Air Asia has a strong connection with the government and other leaders of
the airlines industry. Air Asia enjoys a successful strategic leadership from the management team
who formulate strategies for the company and guides in its execution (Official Website of Air
Asia, n.d.). Air Asia has created its brand name in Malaysian and other Asia Pacific regions in a
successful manner. As far as operation cost is concerned, it is the leader in low cost carrier in
Asia (Cary, 2009). The organization has taken help of new technologies and has utilized
Information Technology excellently. The primary factors behind the success of Air Asia are
adhering to its low cost strategy by making a strong position for itself through constant
innovations in marketing mix, promotion strategies, and advertising campaigns (Official Website
of Air Asia, n.d.).
Business environment of AirAsia

The business environment of Air Asia can be explained in terms of political, economic,
legal, socio-cultural, technological and environmental factors. The political environment of
Malaysia is stable and peaceful and is a preferred tourist destination, thus providing opportunities
for growth for Air Asia. With the increase of the middle class and their disposable income as a
result of economic growth, has increased the sales of the airlines (Cary, 2009). With slow down
of the economy, the customers have switched loyalty and opting for travelling in low cost
airlines like Air Asia. Changes in lifestyle and rise in the purchasing power people in emerging
economies, acts as a positive booster for the business. Technological improvement has
revolutionised the services delivery process and service efficiency and convenience in the
industry. This is a capital intensive industry with strict legal and government regulations and
requires highly competent management (Kho, 2005). Air Asia faces competition from other
similar airlines, low cost airlines and other modes of transportation. With changes in global
business environment, the airlines industry is facing different challenges. With the global
slowdown of economy, the low cost...