STRATEGIC CHOICES

Air Asia Malaysia LCC

Air Asia Malaysia LCC

Introduction

This paper intends to explore the managerial aspects of Air Asia Malaysia LCC. Further, it discusses the performance of the company and strategies that it has implemented. Moreover, the flight fares are compared of Air Asia with other prominent airlines of Asia. To gain better insight of the company, its financial performance is also discussed in the paper during past years.

Discussion

AirAsia is known for offering most reasonable fare rates. It is based in Malaysia, and further it is operating in other counties, such as Thailand and Indonesia. The company's key services include the following Services (airasia.com, 2011, n.d): Cargo services Chartered flight services Courier services Long-haul services Scheduled flight services Travel agency services 

Source: forbes.com

Porter's Generic Strategy Model

According to the above figure of Porter's generic strategy model, AirAsia is placed under the 'Cost leadership' label. It means that the company focuses on maintaining low cost and targeting the market by achieving low cost competency. This way companies may have edge over their competitors offering higher prices (Jeyarathnam, 2008, 42).

Source: AirAsia.com

PEST Analysis Overview

The natural surroundings where Air Asia reside are very unpredictable. All associations have its advised interior flaws and power; however the out of doors globe will furthermore have a foremost influence on the Air Asia's upcoming opportunities. The PEST analysis is well liked trading administration device and procedure of analyzing the numerous distinct external components influencing an organization.

Legal or the Political Aspects

A part will not be adept to gain achievement, good status and believe if it will not address lawful and political part as part of their strategy. For Air Asia, political and lawful parts encompass the desires of the part to pursue the granted principles and guidelines of the government in alignment to be advised as lawful and authorized enterprise sector. In this kind, for instance, Malaysia's airline industry should adept to address political and lawful facets so as to display that they worth the principles and guidelines of the government in any of the enterprise operations (Mayer, 2007, p.132).

Levy policy

paid work laws

Political stability

Ecological regulations

Trade and tariff restrictions

Economic Aspects

It is significant that a certain part should furthermore give sufficient vigilance to its financial stability to Air Asia. The financial aim of certain commerce is like an axis in which other objectives or goals are revolving (Conchie, 2009, p.12).

Socio-cultural Sector

Society and heritage is also a significant component that should be granted focus by Air Asia of Malaysia, expressly those who are functioning in the international arena like Air Asia. It is significant that the part should function in compliance with the communal schemes in alignment to gain good status and productive public image.

Technological Aspects

The complexities of accomplishing enterprise achievement through expanded effectiveness and competitiveness, blended with innovative submissions of up to date expertise, has intensified the perception of both expertise and enterprise managers in the direction of tactics that are required for the management use of Air Asia.

BCG Matrix

Air Asia may be considered a source of income and it lies under the Cash Cow, ...