Strategic Actions Adopted by AirAsi
AirAsia is a Malaysian company that introduced the Low-Cost Carrier service to the domestic market and eventually the Asian region. Currently, AirAsia is the leader in this market segment. We can categorize AirAsia as a first-mover in this industry. That is because the owner takes an initial competitive action in order to build or defense it’s competitive advantages or to improve its market position. Before it becomes the AirAsia that we know today, AirAsia was a poorly performed company owned by a government-link-company (GLC) in Malaysia, DRB-HICOM.
In 2001, it was sold to the current owner, Tan Sri Tony Fernandes founded of Tune Air Sdn. Bhd. for a sum of only RM1.00 (USD 0.25 cents), and agreed to take on the airline’s RM400 million debt. Within 2year, Tony Fernandes exceeds everyone’s expectation and turned AirAsia into a profit-making company. By the third year, it was listed in Kuala Lumpur bourse with outstanding IPO (Initial Public Offer) of RM717.
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4 million (The AirAsia Family, 2017)The Slogan of AirAsia goes as ‘Now Everyone Can Fly’. It is now the leading airline that was established in the year 2001 with the dream of making flying possible and achievable by everyone around any corner of the world. AirAsia managed to become one of the leading airline service providers despite facing the difficulties during the period of recession. They managed to create route networks that cover more than 20 countries which enables the consumers to travel around the globe. The vision of the leading airline company AirAsia is to be the largest low-cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. This shows that the airline is focusing on the middle-income earners as their target market.The missions of the AirAsia will be inspiring to many companies.
One of the core mission of the airline company is to be the best company to work for whereby employees are treated as part of a big family. Besides that, another mission of the company is to create a globally recognized ASEAN brand. This will be a proud statement for the company that originates from Malaysia which enables the country to rise higher in the global arena. Another mission of AirAsia is to attain the lowest cost so that everyone can fly with AirAsia. They are actually flying their talk because the one-way tickets are sold at a remarkable price of RM 1 as the Marketing Director of AirAsia, the task has been given by the Managing Director to explain the impact of consumer buying process and its application to a marketer.