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COMPANY CASE: AirAsia: The Sky's the Limit

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by

Vân Phạm

on 25 September 2014

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Transcript of COMPANY CASE: AirAsia: The Sky's the Limit

COMPANY CASE: AirAsia
Viet jet air case
AIRASIA BACKGROUND
AirAsia was founded in 2001 by Tony Fernandes and it is a Malaysian Government linked airline
It is a low cost carrier (LCC), established with the dream of making travel for everyone with the slogan: "NOW EVERY CAN FLY"
QUESTIONS AND ANSWERS OF AirAsia Case
COMPANY CASE: AirAsia
Group 2:
Pham Thi Van
Nguyen Thi Tuyet
Hoang Thi Huyen
Dong Thi Nguyen
Tran Thi Thanh Hai
Overview
- a dynamic, innovative airline
- operating in Vietnam and planning to expand to Asia-Pacific region
Vision
To become the most prefered and prestigious airline in Vietnam and in the region
Mission
- To develop and operate on flight network. To achieve breakthrough in aviation industry
- To make air transport popular in Vietnam and in the region
- To provide satisfaction to customers with excellent services and friendly smile
SAFETY - FUN AND FRIENDLY - AFFORTABLE PRICE - PUNTUALITY
MICROENVIRONMENT
MACROENVIRONMENT
SUCCESS & PROFIT
REASONS FOR SUCCESS
SUPPLIES
COMPETITORS
- Jetstar
- Vietnam Airlines
PUBLICS
CUSTOMERS
- Petrolimex Aviation
- Singapore International
Airlines Engineering Company
- CFM International
Marketing strategy
Media pulics
- Newspaper: Nhandan, Sinhvien,....
- Internet media: Hot-deal, webside, facebook,...

Customer markets
TECHNOLOGIAL ENVIRONMENT
-Online marketing
- Online booking
- Advanced, mordern and saving energy air plane
ECONOMICS
- In the recession and inflation period, Viet jet Air maintains low-cost strategy and operating effectively
- Value marketing: offer air ticket with a meal
NATURAL RESOUCES
-Viet jet Air leases new fuel-saving A320 aircraft
reduce fuel emission by up to 4% over
longer sectors and 1000 tons of CO2
missions per year
- 120 billion VND in 2013 (disficult economic period
- planning to buy 92 Airbuses ( $ 9 million)
- Accounting for 22.9% of total market
- Not only focusing on domestic market but also flying to international route: eg Hanoi- Seoul
- Planning to fly to China, Singapore, Hong Kong...
- 100 fights to 25 destinations per day
using effectively: 4 rights
PLACE
PRODUCT
PRICE
PROMOTION
MARKETING ENVIRONMENT
MACROENVIRONMENT
THE COMPANY
Top manager
Finance
R&D
Purchasing
Operations
Acconting
SUPPLIERS
MARKETING INTERMEDIARIES
Help company to promote,
sell and distribute its products
to final buyers
COMPETITORS
Firms must gain strategic advantage by positioning their offerings against competitors' offerings
PUBLICS
Financial publics
Media publics
Government publics
Citizen-action publics
Local publics
General publics
Internal publics
CUSTOMERS
Customer markets
Business markets
Government markets
International mrkets
MICROENVIRONMENT
Provide the resouces to produce goods and services
Treat as partners to provide customer value
DEMOGRAPHIC
Demographic environment
Demographic trends
NATURAL
Trends: inscreased
Shortage of raw material
Polution
Government intervention
Environmentally sustainable straregy
TECHNOLOGICAL
Most dramatic force in the marketplace
New products, opportunities
Concern for the safety of of new products
POLITICAL & SOCIAL
Legislation regulating business
Increased emphasis on ethics
ECONOMIC
Factors that affect consumer purchasing power and spending patterns
Q1: What are the micro and macro environmental factors that have contributed to the early success of Asia?
Micro:
- No competing LCC airline
- A hedging strategy
-Horizontal organization structure
Macro
- Deregulation of air travel
- Adaptability
Q2: Discuss the micro and macro factors would affect AirAsia's performance in the current competitive environment described in the case?
Micro Factors
- Employee welfare
Macro Factors
- Brand name recognition
Q3: By focusing on low price, has AirAsia p ursued the best strategy? Why or why not?
AirAsia has managed to gain a big advantage against its regional competiors
Q4: Given AirAsia current situation with a bigger competitors following its business model, what other recommendations would you make to CEO Tony Fernandes for the future of his company?
Open more Asia market
Build customer relationship/ creat loyal customers
Join venture with Virgin group
AirAsia: The Sky's the Limit
Today, AirAsia has aircraft flying to over 61 domestics and international destinations with 108 routes and 400 daily flights
In 2001, AirAsia offered saving up to 60% compared to MAS's price
Leader: Tony Fenandes is strong believer of this airline:
-Assessible to all the staff
- Listen to all customers' feedback

MANAGING COST IN COMPETITIVE ENVIRONMENT
In 2008, there was a global financial recession, but it created an opportunity for AirAisa to get profit
AirAisa makes profits by keeping cost low while maintaining high rate of aircraft ultilization, quick turnaround, low distribution cost.
MANAGING COST IN COMPETITIVE ENVIRONMENT
But the key challenging is how to balance the low fares with the profitability because of rising fuelprice and landing charges
To combat this, AirAsia are emloying fuel hedging and fuel surcharges, fuel efficient aircrafts and using secondary airports

Now, AieAsia has become one of the world's best low cost airline.
THANK YOU
Q & A
Full transcript