Air Asia: Penetrating into the South African Airline Industry

Research Paper (undergraduate) from the year 2009 in the subject Business economics - Offline Marketing and Online Marketing, grade: High Distinction, Monash University Malaysia, Sunway Campus, course: Strategic Management, language: English, abstract: Air Asia is a low-cost carrier based in Kuala, Lumpur Malaysia which flies toover 66 successfully penetrated destinations in 18 countries worldwide. Nevertheless, this innovative organisation continuously seeks new potentialmarkets for its investment. However, not all countries are an attractive prospectfor a new investment. This book presents an analysis on the attractiveness ofthe South African airline industry along with Air Asia s current internal statesand strategies in an attempt to rationalise the viability of an investment decisioninto the state. The data collected entails from secondary sources ranging fromacademic journal articles, organisational websites and reports, onlinenewspapers, to various databases. The main findings includes a favourable yetchallenging immediate and macroeconomic environment conditions in SouthAfrica, supporting internal strengths that were aligned with most key successfactors for the investment plan taking into account certain drawbacks identified,and a well-positioned business-level and corporate-level strategy to take on anew investment in the state. It is concluded that the South African airlineindustry is a viable market in which Air Asia is able to weather those obstaclesand achieve great success. Nonetheless, Air Asia is recommended to play safeand currently penetrate the industry on a smaller scale before operating in alarger scale.