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How should Airasia respond to the destruction posed by characterize the competitive dynamics in this market?

Updated: 4/28/2022

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∙ 13y ago

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competitive dynamics: adoption the copmetitive responds and action taken by firm in market.

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Q: How should Airasia respond to the destruction posed by characterize the competitive dynamics in this market?

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What are the micro and macro environmental factors that have contributed to the early success of airasia?

moderately high due to almost no switching cost for customers to switch from one LCC to another. In addition, the access to the internet allows customers to have close to full information on prices charged by the LCCs. Threat of substitutes is moderately low; there are several substitutes such as cruises, rail, bus, and car. However, the archipelago geographical structure of Asia has made air travel the viable, efficient, and convenient mode of transportation. Threat of new entry is moderate; high capital requirement and government barrier such as air service agreement can act as barriers to entry. However, the deregulation of aviation industry in Asia Pacific region has resulted in more competitors entering the market. Furthermore, many full service airlines enter the LCC industry by launching their LCC version. For example, Nok Air set up by Thai Airways is a part of LCC industry in Thailand. Finally, industry rivalry is moderately high due to price as the basis of competition and high exit cost. However, market participants tend to realize that price war is destructive for them thus they avoid direct price competition and they turn into 'friendly' competitors. Appendix 3 summarises Porter's five forces specific to LCC industry. Based on the environmental scanning performed, the demand for LCC is expanding thus LCC industry will keep growing rapidly. The LCC industry attractiveness and profitability will attract many full service airlines to launch its LCC version adding the degree of rivalry in this industry. As the implication, AirAsia, current market leader of LCC in Malaysia, Thailand, and Indonesia, will face competition from both existing and new players. In order to sustain its competitive advantage, AirAsia needs to leverage its competency in creating cost advantages across multiple value chains.

Related questions

What is airasia new technology to gain competitive advantage or improve its profitability?

they dont have any technology

When was AirAsia created?

AirAsia was created in 1993.

When was AirAsia X created?

AirAsia X was created in 2007.

When was AirAsia Japan created?

AirAsia Japan was created in 2011-08.

When was Indonesia AirAsia created?

Indonesia AirAsia was created in 2004-12.

When was AirAsia Philippines created?

AirAsia Philippines was created in 2010-12.

When was AirAsia Philippine Patriots created?

AirAsia Philippine Patriots was created in 2009.

What is the weekness of airasia?

Godzilla

Does AirAsia have A380s?

Yes they do.

How many employee in AirAsia?

As of 2015, AirAsia employs approximately 10,000 people and has a fleet size of 168 aircraft.

What is Airasia help desk phone number?

airasia help desk phone number...no answer. you cheated me by asking my facebook

How to be a ticketing agent for AirAsia?

Check with the airline.

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