Which business level strategy does AirAsia pursue?
cost leadership strategy
The business level strategy adopted by Air Asia is a cost leadership strategy – LCC, and selling their services below the average industry price.
What is AirAsia business strategy?
AirAsia X’s stated strategy is: to be the leading low-cost, long-haul airline, operating primarily in the Asia Pacific Region, with the lowest unit cost of any airline in the world (CASK of US¢3.74 and CASK ex-fuel fuel of US¢1.90 for 2012), about 70% lower than full service airlines in the region, offering fares 30%- …
What strategy does AirAsia use?
AirAsia Product Strategy The basic product strategy in its marketing mix is its low-cost air services. AirAsia focuses on providing guests with comfort through competent facilities that meet industry standards, as well as regular flights and secure point-to-point connectivity.
How AirAsia implements its low-cost leadership strategy?
AirAsia applies low-cost leadership on its whole operations which characterized as; high aircraft utilization, no frills (no free foods, no seat assigned, ticketless, no refundable ticket, no loyalty program), modernize operations (simple process, single class seating, standardized operations), basic amenities, point …
What is the corporate level strategy?
A corporate-level strategy is an action taken to gain a competitive advantage through the selection and management of a mix of businesses competing in several industries or product markets.
Is AirAsia a cost leadership strategy?
In the LCC segment, cost is the competitive priority and it determines market position. In lieu of this, Airasia has applied the focused cost leadership strategy wherein it targets on specific markets; price sensitive customers as well as lowering its overall costs (Flouris and Walker, 2005).
What are the 3 corporate level strategies?
Three Levels of Strategy: Corporate Strategy, Business Strategy and Functional Strategy
- Business-level strategy.
- Functional-level strategy.
- Corporate-level strategy.
How does AirAsia reduce cost?
KUALA LUMPUR (April 29): AirAsia Group Bhd expects to achieve at least a 30% year-on-year cost reduction in 2020 as a result of initiatives implemented, including deferring aircraft deliveries and restructuring its fuel hedges. As such, it expects to end 2020 with 242 aircraft, one aircraft less than last year.
Why does AirAsia need to consider strategic management?
But, AirAsia needs to come out with the strategy that can make competitive position that the company performs different activities from rivals or performing similar activities in different ways to achieve their business successfully. In addition, the third reason, why AirAsia company needs to consider and stress to a strategic management?
What are the strengths and weaknesses of Air Asia?
A SWOT analysis indicated that Air Asia has strengths in management, operational efficiency and marketing, but has weaknesses in staffing, customer care, and attractiveness to business travellers.
How is the airline industry in Air Asia?
A five forces analysis indicates that the airline industry is highly competitive, with a high threat of new entries and of substitutes in the domestic travel market. Air Asia is positioned at the low cost end of the spectrum of competitors that fly internationally.
Which is the best case study for AirAsia?
AirAsia Business Case Study: Strategy and Environment. AirAsia is one of the leading airlines corporation of Malaysia that performed exceedingly well in terms of its past investments and the profits that it made out of it after it’s relaunch. It was acquitted by a private entrepreneur Tony Fernandes when it was highly under debt.