AirAsia Case Study: Strategies and Decisions for Airline Success

The AirAsia case study delves into the strategic decisions and operational strategies that underpinned the airline's growth and diversification. It explores the challenges faced during the launch and expansion, including technological investments, fuel price fluctuations, and workforce management. The study examines how AirAsia managed to maintain low operational costs, navigated competitive pressures, and ensured passenger safety. It highlights the company's strategic positioning and the transfer of core corporate knowledge to achieve business success. The analysis covers the application of technology, the allocation of resources, and the importance of strategic partnerships in achieving and maintaining a competitive edge within the airline industry. This case study offers insights into effective management strategies and decision-making processes in a dynamic business environment, emphasizing how AirAsia achieved a successful and profitable business model.

Running head: MANAGEMENT STRATEGY AND DECISION MAKING 1
MANAGEMENT STRATEGY AND DECISION MAKING
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MANAGEMENT STRATEGY AND DECISION MAKING 2
AIR ASIA CASE STUDY
The case study involves;
 The strategies and decisions that led to diversification of AirAsia and the Tune Group
across many countries.
 The strategies the management use to maintain the lowest cost operation in their
airline.
 Strategies they use to manage their profits and operate in airline and also engage in
external engagements by sponsoring organizations and several firms.
 The strategies and decision made for a continuous profit making leading to the best
airline in Asia
During the launch of AirAsia the management had spasmodic issues as they tried to venture
and diversify the Air Asia, some of the issues included;
 Application of the latest technology as it needed a very huge investment for easy links
identification across similar or different geographical markets.
 Fuel price increase which lead to an increase in operational cost bringing in the urge
for appropriate use of resources to help diversification in the air line.
 The number of staff was less due to low cost operation in the company having a low
corporate level strategy led to creation of joint interdependence between business
units.
 Trouble creation during the peak hours due to less number of employees in order to
minimize cost in the process of diversification.
 Pressure to handle tough competition from other airlines before decisions are arrived
to pursue a defensive or offensive strategies for value achievements

MANAGEMENT STRATEGY AND DECISION MAKING 3
 Finding possible means to achieve safety in their airline as they there were sudden
accidents to achieve best performance under their ownership.
 The means to let the passengers get experience on their airline by letting them know
it’s the safest mean of transport where the Air Asia corporate level strategies select
strategic positions to increase the airline value.
 Transfer of core corporate level as they got more experience and critical knowledge to
business success thus posting them into new management positions.