Professional Documents
Culture Documents
AirAsia Casestudy
AirAsia Casestudy
Apoorva Sharma
Anoop Kumar Sharma
Adarsh Chhajed
Rahul Gupta
Rushikesh N. C.
Presentation Outline
Strategy models
LCC
FSC
Hybrid`
Porter’s Five Forces of
Threat of New Entrants (High)
Industry
-Saturated industry hence there is hardly any space for a new comer
-High cost of entry
-High Operating cost. (Fuel, Taxes, fees, Airport charges)
-High cost of buying & leasing Aircraft.
-Strong existing player
AirAsia India
Got the permit in March 2014
Plan to offer travel at 35% cheaper than competition
Will Achieve Aircraft Utilization Rate of 16 hours & Turnaround time
of 20minutes
SWOT Analysis
Strength
Effective top management
Strong strategy and execution –
plan on fuel hedging, buying low
cost airbuses
Strong brand name and joint
venture with TATA, reputed name
in INDIA
Low cost model
Single type fleet
Weakness
Limited human resource
Heavy reliance on IT
Rising fuel cost
Rising labor cost
Opportunities
Low Price
Vast population/Strong Demand
Enormous size and growing
middle class
Can target one million people
traveling by train
Threats
Political & Economical Factor
Regulatory uncertainty of Indian
govt.
Competitor
PEST Analysis
Political
Economical
Socio – cultural
Technological
Low Cost Carrier (LCC) is an airline that has low fares and
fewer comforts. e.g. Indigo, SpiceJet and GoAir
Full Service Carrier (FSC) is an airline that offers more
comforts such as in-flight entertainment, checked
baggage, meals, more seat recline and legroom in the
ticket price. e.g. Air India and Jet Airways
Estimated Profitability:
19
Market Share
inancial Performance