Case Study: Air Asia- Now Everyone Can Fly

Question 1

• Air Asia has low cost fare compare to other firm
• Air Asia has low distribution cost
• Pioneered low cost travelling in Asia then followed by other firm
• Has been monopoly Malaysia Airlines for a long time.
• The first airline to implement unassigned seat

Question 2

The Porter's generic strategies that was applied by AirAsia is broad cost leadership. Air Asia has low cost fare compare to other firm. AirAsia operates in broad market. Asia's largest low fare,no frills airline. Pioneered low cost travelling in Asia then followed by other firm.

Question 3

Air Asia Buyer Power
Air Asia assessed by analyzing the ability of buyers to directly impact the price to pay for an item. As an example Air Asia giving  a low cost travelling to their customers. Many airline has high buyer power because of many choices.

Air Asia Supplier power
Air Asia have high supplier power when they are the only airline that offer ticket at lower cost and lower supplier power when they have competition from other airline. Air Asia use private exchange because they are currently the main customer of the Airbus A320. The company has place an order of 175 units of the same plane to service its route.