AirAsia Final


History of AirAsia: established by DRB-Hicom Berhad in late 1996 The death of Tan Sri Yahaya Ahmad management and financial crisis 8th December 2001, Tony Fernandes had taken over AirAsia with RM 1 (40mil) 7 month in operation, gained RM 113 million Going public on 2004 and got its own airport on 2006


For analyzing the company s web design, we will observe Air Asia s website by

Using the 7C factors :
y Context, y Content, y Community, y Communication, y Customization, y Connection, y Commerce

Customer Segmentation

SWOT analysis to analyze the internal factors(strengths and weaknesses) and external factors (opportunities and threats) of AirAsia company.



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1. Rivalry among existing competitors: y As Porter s generic strategies (1985), Airline operation can divide into two kinds y of styles: differentiation and cost leadership. Some airlines will try to provide a y well-done service to reach differentiation and the others will attempt to reduce y the price and AirAsia is position as them. So industry rivalry is moderately high y due to the price competition is really popular in the airline industry. 2. Threat of new entrants: y Threat of new entry is moderate. Because it requires high capital to support and y government barrier is high such as the air service agreement can build barriers to y those new entrants.

3. Bargaining of suppliers: y The power of supplier is high due to the airplane manufacturers only Boeing and y Airbus. The switching cost for the Boeing and Airbus is pretty low because it can y sell same standards to another airline. And making airplane needs high technique y and specialist so it is rarely possible for AirAsia to extend and integrate their y operation into supplier part. y Analyzing Air Asia in Business Competition Era y 12 FCU e-Paper (2009-2010)

4. Bargaining power of buyers: y The power of buyer is moderately high due to almost no switching cost for y customers. Customers can compare each airline by the Internet so the y information about the price and service is quite clearly. 5. Threat of substitute products or service: y Threat of substitutes is moderately low. Due to the archipelago geographical y structure of Asia customers must have to transport by airplane or cruise. And air y travel is faster and more convenient than cruise.

Capabiliti s Analysis
Analyze processes and infrastructure y AirAsia build up their competitive advantage form providing customer lowest price and omit the unnecessary service. Evaluate people and partners AirAsia chose many kinds of field partners as their complementors. Their partnership can divide into two main kinds: direct partners and indirect partners. y Direct partners have strong relationship with the airline, for example, hotels, travel agencies and so on y Indirect partner included Facebook, Twitter,etc.

leadership and governance y The mission of AirAsia is To be the best company to work for whereby employees are treated as part of a big family . y In AirAsia, all staff is regarded as contributors so there is no rank and the organization structure is far from hierarchy.

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