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 to over 66 successfully penetrated destinations in 18 countries worldwide. Nevertheless, this innovative organisation continuously seeks new potential markets for its investment. However, not all countries are an attractive prospect for a new investment. This book presents an analysis on the attractiveness of the South African airline industry along with Air Asia's current internal states and strategies in an attempt to rationalise the viability of an investment decision into the state. The data collected entails from secondary sources ranging from academic journal articles, organisational websites and reports, online newspapers, to various databases. The main findings includes a favourable yet challenging immediate and macroeconomic environment conditions in South Africa, supporting internal strengths that were aligned with most key success factors for the investment plan taking into account certain drawbacks identified, and a well-positioned business-level and corporate-level strategy to take on a new investment in the state. It is concluded that the South African airline industry is a viable market in which Air Asia is able to weather those obstacles and achieve great success. Nonetheless, Air Asia is recommended to play safe and currently penetrate the industry on a smaller scale before operating in a larger scale.