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Company Analysis: Airasia Berhad

- AirAsia is a low-cost airline based in Malaysia that provides domestic and international passenger and cargo services. It was founded in 2001 and has grown rapidly to become a leading low-cost carrier in Asia. - The report analyzes AirAsia through a SWOT analysis to understand its strengths, weaknesses, opportunities, and threats. It also examines the company's background, operations, products/services, and competitors. - The purpose is to conduct a strategic analysis of AirAsia to identify opportunities and risks it faces, as well as strengths and weaknesses, to help it gain competitive advantage through an appropriate strategic plan.

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0% found this document useful (0 votes)
1K views20 pages

Company Analysis: Airasia Berhad

- AirAsia is a low-cost airline based in Malaysia that provides domestic and international passenger and cargo services. It was founded in 2001 and has grown rapidly to become a leading low-cost carrier in Asia. - The report analyzes AirAsia through a SWOT analysis to understand its strengths, weaknesses, opportunities, and threats. It also examines the company's background, operations, products/services, and competitors. - The purpose is to conduct a strategic analysis of AirAsia to identify opportunities and risks it faces, as well as strengths and weaknesses, to help it gain competitive advantage through an appropriate strategic plan.

Uploaded by

st nazirah
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 20

AIRASIA BERHAD – SITI NAZIRAH BINTI LATUWO

COMPANY ANALYSIS

AIRASIA BERHAD

TECHNOLOGY ENTREPRENEURSHIP (ENT600) : CASE STUDY

FACULTY & PROGRAMME :

FACULTY OF ARCHITECTURE, PLANNING & SURVEYING

BACHELOR 0F BUILDING SURVEYING (AP229)

SEMESTER :

5 (CLASS AP229 5E)

PROJECT TITLE :

STUDENT :

SITI NAZIRAH BINTI LATUWO

2018635192

LECTURER :

WAN ISMAIL BIN WAN MAMAT

I
AIRASIA BERHAD – SITI NAZIRAH BINTI LATUWO

AKNOWLEDGEMENT

In preparation of my assignment during the Covid-19 pandemic, I had to take the help and guidance of
some respected persons, who deserve my deepest gratitude. As the completion of this assignment gave
me much pleasure, I would like to show my gratitude to Sir Wan Ismail Bin Wan Mamat, Lecturer for
subject ENT600, for giving me a good guideline for assignment throughout numerous consultations. I
would also like to expand my gratitude to all those who have directly and indirectly guided me in
writing this assignment.

In addition, a big thank you to my beloved parents for supported me and always by my side throughout
the years with all the hardship and difficulties that i has been through especially during I’m working on
all the assignments.

Many people, especially my classmates have made valuable comment suggestions on my paper which
gave me an inspiration to improve the quality of the assignment.

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AIRASIA BERHAD – SITI NAZIRAH BINTI LATUWO

TABLE OF CONTENT

PAGE

TITLE PAGE I

AKNOWLEDGEMENT II

TABLE OF CONTENT III

EXECUTIVE SUMMARY VI

1. INTRODUCTION

1.1 Background Of The Study 1

1.2 Purpose Of The Study 1

2. COMPANY INFORMATION

2.1 Background 2-5

2.2 Organizational Structure 5

2.3 Products/Services 5-6

2.4 Technology 6-7

2.5 Business, marketing, operational strategy 7-9

2.6 Financial achievements 9-10

3. COMPANY ANALYSIS

3.1 SWOT analysis 10-12

4. FINDINGS AND DISCUSSION 12-13

5. CONCLUSION 13

6. RECOMMENDATION AND IMPROVEMENT 14

7. REFERENCES 15

8. APPENDICES 16

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AIRASIA BERHAD – SITI NAZIRAH BINTI LATUWO

EXECUTIVE SUMMARY

AirAsia is well known company for airlines industry especially in all over Asia and being one
of the market leaders in that industry. In order to maintain its brand which is famous with
low cost carrier and to be consumers’ preference to choose using its services offered,
AirAsia must be able to complete with competitors and new entrance by doing some sort of strategies.

AirAsia has very clear vision and mission of the company and this enable each members of
the company work hard to fulfill the vision and mission which has been declare and
must achieve in future for both sort term and long term. Eventually, AirAsia never escape from the
problems in term of its operation and this must be solved by come out with new
strategies and proper planning to cope with that problems. According to internal and external
evaluation of the AirAsia show that the company is getting above 2.5 score for both of
evaluation.

This explained that AirAsia does not affect by any external and internal factors which mean
it is good sign for the company. By look into external and internal factors the company
would be also able to identify what kind of strategies and planning that the company
should take in future. Then after identification and evaluation of external and internal factors, the
company can go further steps with doing matrix evaluation. There are five matrix which are
TOWS, space, Boston Consulting Group (BCG), Grand, Internal-External and competitive profile
matrix. Mostof the matrix evaluation s hows that the company is in aggres s ive s trategy
level and further analysis shows that the AirAsia must do several strategies which connected
with the company’s operation. The analysis of SWOT and strategic planning come out with the two
important strategies that must be taken by the AirAsia in order to develop its performance of
company in future.

The two important strategies are market penetration and market development. These two
strategies c l a s s i f i e d u n d e r a g g r e s s i v e s t r a t e g i e s a n d c o m m o n l y u s e d t o b o o s t
o r i n c r e a s e s a l e s o f company’s services and automatically increase revenue too. Although both
of these strategy have their ow n advantages and dis advantages , it is believed that both is
the bes t s trategy for the company to take in future based on analysis done towards the company
itself.

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AIRASIA BERHAD – SITI NAZIRAH BINTI LATUWO

1.0 INTRODUCTION

1.1 Background Of The Study

AirAisa Berhad ( AirAsia) is a low-cost airline based in Malaysia. The company provides
passenger and cargo transportation services across domestic and international markets. AirAsia
serves various destinations across the world.

This business intelligence study report presents the key company information, essential to
understanding industry challenges and competitors. The report also study on the SWOT analysis
which is identifies the company’s strengths, weaknesses, opportunities for growth and threats.
The key competitors are dissected alongside the larger challenges that the industry is facing. The
company profile relays all current information about the business operations, major products and
services, company history, locations and subsidiaries.

1.2 Purpose Of The Study

The purpose of this study is to conduct a SWOT examination in the context of AirAsia's
international business functions, determining the major factors engaged and the impact of the
specific risks and opportunities confronted by AirAsia.

Besides that, the purpose of this survey is also to recognize its stakeholders and central
competencies, review a proper examination of AirAsia to identify opportunities and threats it
could face, also to isolate key advantages and any weaknesses that need dealing with. In addition
a SWOT analysis will be completed to evaluate the extent to which its strategies are appropriate
to what is going on in its present environment.

Finally, after figuring out competitive strategy a strategic plan will be produced to gain
competitive advantage.

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2.0 COMPANY INFORMATION

2.1 AirAsia Company Background

AirAsia was create by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and
his associates set up Melody Air Sdn Bhd (Tune Air), an air travel keeping company then bought
over AirAsia. Now, AirAsia is becoming one of the very most successful airlines in the
Southeast Asian region and the pioneer of low cost no frills travel in Malaysia.

The leading low fare air travel in the Asia - AirAsia has been broadening swiftly since
2001, to be an award winning and the largest low cost carrier in Asia. Using a fleet of 72
aircrafts, AirAsia flies to over 61 domestic and international places with 108 routes, and runs
over 400 plane tickets daily from hubs found in Malaysia, Thailand and Indonesia. Currently,
AirAsia has flown over 55 million friends across the region and continues to distributed its wings
to create more extensive route network through its associate companies, Thai AirAsia and
Indonesia AirAsia.

AirAsia Berhad was established in 1993 and began operations on 18 November 1996. It
was founded by a government-owned conglomerate, DRB-HICOM. On 8 September 2001, the
heavily indebted airline was bought by former Time Warner executive Tony Fernandes and
Kamarudin Maranun’s company Tune Air Sdn Bhd for the token sum of one ringgit (about
US$0.26 at the time) with US$11 million (MYR 40 million) worth of debts. The partners turned
the company around, producing a profit in 2002 and launching new routes from its hub in Kuala
Lumpur, undercutting former monopoly operator Malaysia Airlines with promotional fares as
low as MYR 1 (US$0.27). In 2003, AirAsia opened a second hub at Senai International
Airport in Johor Bahru and launched its first international flight to Bangkok.
AirAsia subsequently started its Thai AirAsia affiliate and began flights
to Singapore and Indonesia. Flights to Macau started in June 2004, and flights to mainland China
(Xiamen) and the Philippines (Manila) in April 2005. Flights to Vietnam and Cambodia followed
in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia. In August 2006, AirAsia
took over Malaysia Airlines's Rural Air Service routes in Sabah and Sarawak, operating under
the Fly Asian Xpress brand. The routes were returned to MAS wings a year later, citing
commercial reasons.

AirAsia is currently one of the leading low cost airlines in South East Asia which
includes expanded rapidly and it's still the second major air carrier in Malaysia. It strong
characteristics of business is depend on local and international flights, trip and business plans for
its customers domestically and internationally around the region with the low fare, safe and
convenience method of travel.

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Figure 1: Distribution Affiliated Airlines that Operate Under the AirAsia Brand

2.1.1 Brand Logo Design

Figure 2 : AirAsia’s Brand Logo

2.1.2 AirAsia Company’s Vision and Mission.

Nowadays every organization has mission and vision statements, which show what
organization is – (mission) and a view of what organization wants to be – (vision).
(Harrison and John, 2009) In addition, the mission statement of the organization must be
broad because it is an umbrella which encompasses organization’s programs and services.
(Angelica, 2001)

A. AirAsia’s Vision:

Continue to be the lowest cost airline in every market we serve.

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B. AirAsia’s Mission:

 To be the best company to work for whereby employees are treated as part of a big
family
 Create a globally recognized ASEAN brand
 To attain the lowest cost so that everyone can fly with AirAsia
 Maintain the highest quality product, embracing technology to reduce cost and
enhance service level (AirAsia website)

Figure 3: AirAsia’s Brand Logo and the tagline “ Now Everyone Can Fly”.

2.1.3 AirAsia’s Values

AirAsia make the low fare model possible through the execution of the following key
strategies, such as:

A. Safety First

Partnering with the world’s most renowned maintenance providers and complying with
the world air travel operations.

B. High Aeroplanes Utilisation

Implement the parts most effective turnaround time of them and the costing only for 25
minutes, guaranteeing lower costs and higher production.

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C. Low Fare, No Frills

Provide the guests with the decision of customizing services without reducing on quality
and services.

D. Streamline Operations

Have to make sure the streamline operation processes are easy as possible for customers
to use it.

E. Lean Distribution System

Give an offer a broad and innovative range of distribution programs to make arranging
and travelling easier

F. Point to Point Network

Apply the point-to-point network to maintain the function so it can be simple and low
cost.

2.2 Organizational Structure

Organizational structure for AirAsia Berhad has three executive vice presidents, for
operations, commercials and people, serve under the CEO and the deputy CEO. The senior
manager of the network operations, who contributed most of the information in this article,
reports to the executive vice president of operations. Based on the CEO of the company, the
organizational structure not officially emphasized because he prefer to have a common feeling of
unity among the staff. Thus having a rigid structure will segregate people into different
categories.
In general, the organizational structure of this organization is one that has two
management layers which is the top managers consisting of the CEO, deputy CEO, and three
vice-presidents and the second layer consisting of managers for various functions.

2.3 Products and Service Provided by AirAsia

A. In-flight Services

AirAsia offer foods and drinks on broad programme. In-flight services customise dishes and
merchandise offer upon request, e.g. hats, T-shirt, and slacks.

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B. Online Services

Online scheduling makes it far more convenient for its customers to reserve online anywhere
anytime. Air travel information is available to help customers make enquiries on journey
schedules introduction and departure time and particular date.

C. Chatter-Airfare

Design for a group of people, business holiday makers for purposes like conferences,
conventions, leisure or even exhibition.

2.3.1 Channels of Distribution

A amount of alternate ‘channels’ of distribution may be accessible, such as:

A. Selling Direct

a. Outbound sales forcer


b. Via mail order and internet
c. Mobile phone sales

B. Selling Indirect

a. Agent - Who typically sells direct on behalf of the producer.


b. Distributor (also known as wholesaler) - Who provides to retailers.
c. Dealer (also called supplier or reseller) – Who offers to end customers.

2.4 Technology

A. Computer Reservation System (CRS)

AirAsia's CRS (Open Skies by Navitaire) has helped it to expand at a dramatic pace before year
or two. It is an integrated web-based reservation and inventory system. It offers Internet, call
centre, airport departure control and even more. It is a primary sales engine that effectively
removes the middleman (travel agents) and the sales commissions that require to be paid to them.

B. Enterprise Source of information Planning System (ERP)

AirAsia has opted for a full fledged ERP system carried out by Avanade consultants. By
employing this bundle AirAsia is looking to successfully maintain process integrity, reduce
financial month-end final processing times, and increase confirming and data retrieval processes.

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C. Self Check In

The use of the new self applied is to check operating quicker and far more convenient way to
check in using cell phones, laptops etc, attaching to the internet. This technique is easier and
faster for customers and their family to check on in at or before they reach the airport and never
have to queue up at the counter to check on in.

D. Air Asia credit card

Air Asia offers a choice of credit-based card facilities to fit in their customers travel life-style
whether it be business, leisure, training or vacations. With an Air Asia master card a customer
can purchase any goods or services while travelling all over the world online.

E. Go Holiday break services

Air Asia has something called Go Vacation, by making use of E-commerce Air Asia is able to
screen their coverage maps, vacation resorts, first and average category hotels, car rentals
services, and activities in various countries with their different rates and prices on Air Asia's web
page. . Using E-commerce, customers are able to select and make a holiday and travel
arrangement with a hotel with their choice and class, a pick up car and even medical services.
And repayments for all this can be done on the internet using bank cards or other online E-
payment methods before travel time.

2.5 Business, Marketing, and Operational Strategy of AirAsia Berhad

The Business Strategy of AirAsia is “To continue to be the lowest cost short-haul airline
in every market it serves, delivering strong organic growth through offering the lowest airfares at
profit”. AirAsia is famous not only because of the low cost. While it also because of other
business strategy of AirAsia. Thus, business strategy of AirAsia is the important key for the
successful of AirAsia. This strategy focusing in six main strategic thrusts:

A. Advertising

One of the reasons why many people will choose AirAsia rather than other airlines in
Malaysia is because of the advertising strategy been implemented by AirAsia. Air Asia does their
advertising through television and newspaper. The advertising of AirAsia keep emphasizes their
slogan, ‘Now Everyone can fly’. With the slogan, majority audience will remember that AirAsia
is their first choice to choose and cheap. Thus, the advertising of AirAsia is very efficiency and
effective that can cause AirAsia to become so successful.

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B. Services

AirAsia also provides a good service to their customer in order to attract their customer to
come back after first time travel with AirAsia. AirAsia provide a service that pay attention to
customer’s safety. It partnering with the world’s most renowned maintenance providers and
complying with the world airline operation to ensure every plane in safety condition that can
look after customer safety. AirAsia also uses Streamline Operations to make sure that processes
are as simple as possible so they can provide customer the faster services. AirAsia also has
provided an in-flight magazine to customer for them to not feel bored when in the plane. This is
the first in-fight magazine that had provided by an airline in Malaysia. So, services are also
important factors that that causes Air Asia so successful. 

C. Package

From the informative website www.airasia.com, customers can book different types of
packages directly from Go Holiday, AirAsia’s vacation imprint. Asiatravel.com is Asia’s largest
hotel and flight reservation services. It offer over 60,000 hotels and resorts worldwide and flight
departure points from major countries in Asia and all parts of the world. All flights and hotels
can be booked on instant-confirmation basis. Everyone can fly with AirAsia at amazing low
prices and provide different hotel package. 

D. Promotion and Low Cost

Air Asia is the most successful cheap airfare airline in Malaysia. “Now Everyone Can
Fly”, it is Air Asia slogan. Generally, people have to book early with Air Asia so that can get the
cheapest airfare. Air Asia does promotions by television, in the newspapers and in tabloids. It
also send newsletter by email to register customers to inform free seats promotion for flight to
some selected cities.

E. Internet

Airasia.com is an online travel booking site and offering reasonable selection of airfares.
It allow customer to online booking flight tickets. Among all the payment methods credit card
would be the best choice, however customers can choose debit card too if they do not possess a
credit card. AirAsia online booking process is very easy and fast. Beside that, schedule of
domestic and international flights and Asia’s largest low fare and no frills airline is operated by
it.

F. Awards

In year 2003, AirAsia website had voted as the most popular website for online shopping
in the 11th Malaysia Internet User Survey conducted by AC Nielsen Consult. AirAsia also gets
an award of Obtained Malaysian Superbrands status by Superbrands International. Besides that,
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AirAsia gets CIO TOP 100 Honoree for excellence in strategic IT deployment and Developing
Airline of the Year 2003 by Airfinance Journal in the same year.

The AirAsia’s owner, Tony Fernandes gets the CEO of the Year by Business Times and
American Express in year 2003. While in year 2004, AirAsia gets more than 10 rewards. In year
2005, AirAsia had received seven rewards. In year 2007, AirAsia gets six rewards and year 2006
gets about 5 rewards. AirAsia gets more than 18 rewards in year 2008. In the year 2009, AirAsia
also gets more than four rewards. In year 2010, AirAsia gets the awards of Masterclass Global
CEO of the year, World’s Best Low Cost Airline and AirAsia voted the Air Cargo Industry
Newcomer Award at the ACW World Air Cargo Awards 2010.

2.6 Financial Performance

AirAsia Berhad has seen remarkable growth in revenue. Revenue skyrocketed from
RM3.9 billion a year in 2010 to almost RM12.5 billion a year in 2019. That is a remarkable
12.35% CAGR growth in revenue. However, net profits attributable to shareholders do not share
the same trend though. One of the main operating costs of running an airline company is jet fuel
costs. Air fuel cost is cyclical hence it tends to impact AirAsia Berhad’s bottom line
significantly. The airline business is also capital intensive as it requires airline companies to
either expand and grow their fleet via plane acquisition or leasing, which may also contribute to a
large chunk of costs.

A choppy profit margin will impact the investment returns of a company. AirAsia Berhad
has seen Return on Equity fluctuating from around 30% to less than 10% over the span of 10
years. Return on Assets fluctuates between 10% and 0%.

Figure 3:

AirAsia Group Berhad Historical Return on Equity (%) and Return on Assets (%)

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Figure 4:

AirAsia Group Berhad Historical Revenue and Net Profit Attributale to Shareholders

3.0 COMPANY ANALYSIS

3.1 SWOT ANALYSIS

3.1.1 Strengths in the SWOT Analysis of AirAsia

Strengths are defined as what each business does best in its gamut of operations which can give it an
upper hand over its competitors. The following are the strengths of AirAsia:

A. Steady and Consistent

AirAsia has been positioned as a low-cost airline. The airline has been successful in ensuring that
they consistently keep their operating costs as low as possible and this means that the benefits of
this trickle into the pricing.

B. Weekly Flights

Through customer research, AirAsia realized that many customers travel from Trichy to Chennai
and then onward to Kuala Lumpur, Singapore, and Bangkok which was proving to be expensive.

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This made the airlines start weekly flights to Kuala Lumpur priced as low as Rs 12000 as return fare
in comparison to Rs 21,000 of other airlines

C. Extensive Coverage in India

AirAsia was quick to realize the huge prospect that India offered and thus moved into the region.
The airline operates around 120 flights to India connecting various key destinations and ensuring
that economic travel option is offered to customers.

D. Innovation in Service

AirAsia has been using cutting-edge technologies for innovation. Some of their service
innovation included online ticket reservation printing and even e-check-in. The airline has also been
streamlining costs by replacing human effort with technology through online services

E. Successful Cost-Cutting

AirAsia is a low-cost airline and they have taken all possible measures to cut down on costs.
One strategy that has been followed by the airline is to transfer the onus of service to the customer
making most of the work as self-service.

3.1.2 Weaknesses in the SWOT Analysis of AirAsia

Weaknesses are used to refer to areas where the business or brand needs improvement. Some of the
key weaknesses of AirAsia are:

A. Sustainig Costs

AirAsia is a low-cost airline and thus it is critical that the airline keep its operating costs as low
as possible. With fluctuations in fuel costs and increase in service costs, the airlines find it
immensely challenging to keep their costs as low as possible.

B. Low Profits

In order to keep their positioning of a low-cost carrier, AirAsia keeps their pricing as low as
possible and thus rely completely on volumes for their profits which in turn has resulted in lowering
the profits as well as reduced continuous revenue inflows.

C. Challenges in Balancing Service Quality with Pricing

The USP of AirAsia is the low-cost carrier image it carries. However, customers are not willing
to compromise on quality just because they charge low and satisfaction is based on the quality of
services. The airline thus finds it challenging to balance the quality with pricing and it has been
alleged that compromise on quality.

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3.1.3 Opportunities in the SWOT Analysis of AirAsia

Opportunities refer to those avenues in the environment that surrounds the business on which it can


capitalize to increase its returns. Some of the opportunities include:

A. Surge in Oversea Travel

In Asia where Air Asia is based out of there has been a surge in business travel. Destinations like
Singapore, Malaysia, and Bangkok are popular in the world tourist map and vacation seasons also
see a surge in pleasure travel. These are opportunities that the airline can capitalize on.

3.1.4 Threats in the SWOT Analysis of AirAsia

Threats are those factors in the environment which can be detrimental to the growth of the business.
Some of the threats include:

A. Competition

The company faces a lot of competition from brands such as Air India, Singapore Airlines,
Virgin Airlines, and etc.

B. Management of Costs

AirAsia is finding it immensely difficult to manage the fluctuations in costs of fuel and also to
maintain its vast fleet of aircraft. The management of costs across time is the most critical challenge
that the airline faces.

4. FINDINGS AND DISCUSSION

Based on the research, Air Asia should join venture with Malaysia Airline System
(MAS). As Malaysian airlines, AirAsia and MAS need to work together to reduce scheduled capacity in
the domestic aviation sector. This aims to avoid overcapacity and waste of resources during the
unusually low period of service. For example, in conjunction with the glorious month of Ramadan for
Muslims in the country, the demand for flights has decreased, including the tourism sector due to fasting
for a month. Therefore, during this period, AirAsia and MAS need to work together to save their costs

Beside that, Air Asia must maintain low cost services to maintain its number of customers
every year. Air Asia can develop its market at a reasonable and affordable discount on the purchase of
plane tickets. Air Asia should also offer side services that are deemed necessary for its customers to
show concern for customer demand or needs

Diversification strategies refer to merchants introducing new product categories to new markets.
This diversification is a product or service that is not related to the core core of the company.

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The suggestion is that apart from conducting low-cost airline activities, AirAsia can become a
home developer on the island of Bali which is also a tourist destination by selling the houses it built to
Balidan residents and not to AirAsia customers. AirAsia can implement the concept of buying cheap and
affordable homes by focusing on the low-income group.

In additional, Air Asia should cut down the additional charge that customer need to pay.
Customers need to pay by themselves when they need anything in the plane. Although the ticket fee is
low, others such as the food and beverages in the plane are expensive. Thus, Air Asia needs to
reconsider to cut it down to attract more customers.

5. CONCLUSION

Through the study conducted, Malaysians should be proud of the level of success achieved by
AirAsia. The ability to achieve performance as a "Market Leader" in this low-cost industry is the result
of orderly and meticulous strategic planning. However, the effects of globalization are somewhat
threatening only those who venture into different business fields of low-cost industry industries applied
by Air Asia Air Asia also has a market segment that is well received by the public with the sale of low
fares.

AirAsia has clearly highlighted how a keen and critical strategic movement may drive a
company towards phenomenal success. Its focus on innovation, cost efficiencies, safety, technology and
superior quality customer service and employee satisfaction has allowed it to add value to its offerings
and activities undertaken in its pursuit of establishing itself as a low-fare, no-frills airline. With these
factors combined, AirAsia has displayed how synergies between management, employees and its
environment can develop a competitive advantage that has over the past few years brought phenomenal
success to the company and has allowed it to be the market leader amongst its competition.

The liberalization of many airline industries has allowed AirAsia continue grow and move into
countries and develop new routes and relationship. AirAsia has created a strong brand with a loyal
customer base, although the airline needs to continually identify new opportunities and try to eliminate
or reduce any new threats it may encounter, if it wants to remain viable in an extremely competitive
environment.

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6. RECOMMENDATION AND IMPROVEMENT

Based on the survey, customer has highest positive level of perception to online purchasing flight ticket.
Therefore, the marketer needs to maintain this positive level of perception for this factor and other
factor. In order for marketer to maintain the level of perception, AirAsia Berhad need to solve the issues
relating to the speed of the website, online payment very fast when receiving any complaints about it.
This is very important as all the customer will use log in to the system to communicate, book the fight
and pay for the fare. Online purchasing flight ticket is the first stage when customer wants to buy ticket.
Customer often has the opinion of the quality of product or service on the basis of a variety of
informational cues that they associate with the product and service (Schiffman.S, 2000).

Food service has obtained the lowest positive perception based on the survey. Marketer need to
put more effort and focus on this factor to raise the customer positive perception. Food service has low
positive perception based on the customer is because of the menu provided have limited choice and food
and drink provided are not so tasty. Therefore, AirAsia Berhad can provided more variety on menu for
costumer to choose and pre-booking when the purchasing the flight ticket. AirAisa also needs to check
their quality and tasty of the food provided so passenger will have higher positive level of perception.
According to Schiffman.S (2000), the finding states that taste and smell perception will affect appetite
on elderly. Therefore, in order to make customer fell that AirAsia care for them, they should think about
the preference of the elder people when preparing the food.

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7. REFERENCE

1. AirAsia Case Study Report. (2018, Feb 16). Retrieved from-https://phdessay.com/airasia-case-study-


report/

2. AirAsia Berhad: SWOT analysis. (2018, Jan 04). Retrieved from - https://phdessay.com/swot-
analysis-of-airasia-berhad/

3.SWOT Analysis of AirAsia (February 2, 2019) Retrieved from https://www.marketing91.com/swot-


analysis-of-air-asia/

4. AIRASIA LOGO, Retrieved from https://1000logos.net/airasia-logo/

5.UKEssays. (November 2018). Organizational Structure of AirAsia. Retrieved from


https://www.ukessays.com/essays/marketing/business-environment-and-strategies-of-air-asia-airlines-
marketing-essay.php?vref=1

6. Study.bay. (November 2018). PEST and SWOT research of AirAsias international business
operations Retrieved from https://studybayhelp.co.uk/blog/pest-and-swot-analysis-of-airasias-
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7. KAYA PLUS, The Financial Literacy Initiative, AirAsia Group Berhad (2020) -
https://www.mykayaplus.com/airasia-bhd/#:~:text=AirAsia%20Berhad%20has%20seen
%20remarkable,12.35%25%20CAGR%20growth%20in%20revenue!

8. Schiffman, S.S., Graham , B. G. (2000). Taste and smell perception affect appetite and immunity in
the elderly. European Journal of Clinical Nutrition, 54(3) , S54.
http://dx.doi.org/10.1038/sj.ejcn.1601026

8. APPENDICES

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AIRASIA BERHAD – SITI NAZIRAH BINTI LATUWO

a) Case Study Written Report Format Guideline (ENT600)

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