CASE STUDY : AIR ASIA - NOW EVERYONE CAN FLY

1)      Identify five (5) of competitive advantages used by AirAsia.

·         Pioneered low cost travelling in Asia 

·         No frills airline

·         The first airline in the region to implement fully ticketless travel and unassigned seats

·         Asia's largest low fare

·         It has hedged 100% of its fuel requirements for the next three years

2)      Which of the Porter's Generic strategies were applied by Air Asia in the case study and explain with examples.

- The Porter's generic strategies that was applied by AirAsia is broad cost leadership. This  is because Air Asia operates with low cost and broad market. For example, Air Asia operates schedule domestic and international flights and is Asia's largest low fare, no frills airline. Air Asia operates with the world's lowest unit cost of US $0.023/ASK. Air Asia pioneered low cost travelling in Asia. It is a broad market because it operates through the slogan "Now Everyone can Fly".

3)      Based on Porter's Five Forces Model, analyze Air Asia's buyer power and supplier power.

·         Buyer power

Buyer power high when buyers have many choice of whom to buy from and low when their choice are few . In this case AirAsia are Asia's largest low fare , this means the customer have very limited choices about the airlines services . This is because only AiAsia offer a very low prices compare to the other . This make the buyer power is low because the did not have many choices and the AirAsia is the cheapest .

·         Supplier power

Supplier power high when buyers have few choices of whom to buy from and low when their choices are many . AirAsia have high supplier power because they have many choices to buy their needs to operate . For example , AirAsia is currently the main customer of the Airbus A320. The company has placed an order of 175 units of the same plane to service its routes. This make the supplier power is high because AirAsia have many choices of supplier .