Airasia Case Study

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Airasia Case Study

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Marketing Report

Case Study 2: AirAsia

Lim Jia Chi (CEA120042)

Mohd Hafizi Bin Mohd Zaki (CEB090032)

Nur Hidayah Binti Ruslan (CEA120073)

                                                                                                                                                                                                                                                                                                         

                                                                                                                                [pic 2]

Introduction

            In general, for our group topic case study 2, AirAsia: the sky’s the limit, we will answer 4 questions which related with our study outline analyzing the market.

First and foremost, we will discuss the micro and macro environmental factors that have contributed to the early success of AirAsia. In this topic, we will define clearly the factors related with some explanation and provide some relevant example related to the case study.

Secondly, we will explain the micro and macro factors that would affect AirAsia’s performance in the current competitive environment described in the case. For this question, we will describe in details the environmental forces that affect the company’s ability to serve its customers in the current competitive environment.

Thirdly, we will analyze that by focusing on low prices, has AirAsia pursued the best strategy? If they do pursued with the best strategy, how they make it and why? If they do not pursued with the best strategy then what are the reasons? Besides, we will see how AirAsia analyze these environments to better understand the marketplace and consumers.

Finally, given AirAsia’s current situation with bigger competitors following its business model, we will give some suggestion and recommendations through our own opinion with the relevant statements and examples to CEO Tony Fernandes for the future of his company.

QUESTION 1

What are the micro and macro environmental factors that have contributed to the early success of AirAsia?

Microenvironment factors                                                                                                                                

  1. Customers

              Customers are the most important microenvironment factor. Customers can be classified as consumer market, business market, reseller market, government market and international market. The company needs to target their own market to deliver the customer value and building customer relationship.

               AirAsia captures their consumer markets who are individuals and households that purchase their airline services for travelling purpose for example from Kuala Lumpur to Kota Kinabalu for domestic airline. A success in building customers network contributed to the early success of AirAsia.

  1. The Company

              Company consists of top management, finance, research and development (R&D), purchasing, operations and accounting that build up the internal environment. All of these interrelated groups will work together to design the marketing plans and marketing management. Top management sets the company’s mission, objectives, broad strategies and policies. Marketing managers make suitable decisions according to the strategies and plans from the top management.