Marketing Strategy and Plan

Running Head: Marketing Strategy and Plan
AIRASIA
Marketing Strategy and Plan
PC-DE0310
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Marketing Strategy and Plan
Contents
Executive Summary...............................................................................................................................2
INTRODUCTION.....................................................................................................................................2
SWOT analysis of Air Asia......................................................................................................................3
Strengths in the SWOT analysis of Air Asia.....................................................................................3
Weaknesses in the SWOT analysis of Air Asia.................................................................................4
Opportunities in the SWOT analysis of Air Asia...............................................................................5
Threats in the SWOT analysis of Air Asia.........................................................................................5
MACRO-ENVIRONMENTAL ANALYSIS....................................................................................................6
PESTEL.............................................................................................................................................6
Porter ’s Five Forces Industry Analysis...................................................................................................7
Section 2..............................................................................................................................................10
Conclusion...........................................................................................................................................12
References...........................................................................................................................................14
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Marketing Strategy and Plan
Executive Summary
The AirAsia in the field of aviation is one of the major companies that have become the
market frontrunner of the industry. “Air Asia” is recognised by its promise of providing the
lowest fares of the customers. The slogan of the company is recognised by people and also
helps them in branding their image among the competitors.
Air Asia to deliver its mission and vision educates its employee and staff by providing them
with the necessary training and skills required. The organisation structure followed by the
organisation encourages its employees to work as a team as there is no limitation of
departments (Thestar, 2016).
The analysis of the internal and external factors of Air Asia is conducted that indicates that
they are not affected by both factors. The analysis indicates a positive outcome for the
company strategy for the business in future.
Swot analysis is conducted to get to the deep insight of the company situation to critically
develop plans which AirAsia need to apply to maximise profits. Few strategies are suggested
for AirAsia which can be linked to the company’s operations.
INTRODUCTION
The company AirAsia came into existence in 1993 and the operation activities started in 18
November 1996. It was started by a government of Malaysia and was named as DRB-Hicom.
Later DRB-Hicom was acquired by Tony Fernandes, he curved the business model of the
company and reduced the fares of Air Asia by 1 RM. It has won multiple awards and
recognition for the services provided. AirAsia has 72 aeroplanes all Airbus A320-200.
AirAsia tagline is “Now Everyone Can Fly” as they are offering lowest fares among
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Marketing Strategy and Plan
competitors. The operational activity of AirAsia deals in 51 countrywide and worldwide
terminuses that works on 400 journeys on regular basis with 108 routes from various
locations from Malaysia, Thailand and Indonesia. In the records of AirAsia it is mentioned
that till date it has provided airline service to fifty-one million consumers (AirAsia, 2019).
In the year 2016 the profit of the organisation shows a huge increase nearly 3.7 times which
was nearly RM2.04 billion from RM541.28 million which was much higher from last year.
The company gets its revenue from a different location which is Malaysia, Philippine and
Indonesia the distribution of share are 49%, 11% and 8% correspondingly (AirAsia, n.d.).
As organisations has their own competitors in their field of business, there are some major
competitor of Air Asia named as Firefly, Jetstar, Tigerair, Berjaya Air which operates in the
same ASEANregion. On the other hand, Airasia is the biggest carrier fleet in Malaysia,
compared to the choice and destination by the passengers as the low-cost carrier (LCC) when
compared to opponents, on the other hand number of customers are increased by 6% from
year 2015 (Airasiainsure, 2016).
Pestel and Porter’s Five Forces models are used of conduct the research. SWOT analysis is
used for the critical analysis of internal and external factors of the organisation.
SWOT analysis of Air Asia
Air Asia provides low-cost flights to the customer, the headquarter is based in Kuala
Lumpur, Malaysia. Air Asia is known to best provide best in class facility to its employee in
terms of training and development, it can also be stated that it is employee centric company.
When compared with its competitors Air Asia is the only company proving the lowest
operation cost, that has a unit cost of US$0.023 per seat kilometre (ASK) with 52% of
breakeven factor (Amiruddin, 2013).
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