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 Asiäs 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.