The company could take a leaf from its earlier diversification experience, pre-coronavirus outbreak. AirAsia would then have a tall order making a case for users to switch brand loyalty in a cutthroat industry. The strengths, weakness, opportunities and threats for AirAsia are as follow: - Strengths conclusion the strategies of air asia focus more on the management and access of information rather the creation of irrelevant airline services. Diversification strategies can help mitigate the risk of a company operating in only one industry. Woo pointed out that airasia had begun digital diversification prior to the pandemic, and naturally it was greatly accelerated when the . This case study describes how Air Asia and the Tune Group has capitalised on a leading position in South East Asia airline industry thanks to its unique resources and capabilities, and core competencies.However, Air Asia and the Tune Group's strategic position continues to be challenged by the macro-external . AirAsia has done horizontal diversification when entering into Indonesian market by partnering with Awair, which is an Indonesian airline. Recommendations for Air Asia Berhad to go through turbulent times ahead of hyper competitiveness in the airline industry. Diversification is endemic in the corporate world; almost all the fortune 1,000 organizations are diversified. The premise behind AirAsia's varied latest forays is simple: as Southeast Asia's pre-eminent budget carrier, it claims to have the know-how, digital infrastructure and a 60 million-plus . 8.3 Diversification. The diversification is an attractive option to meet the growing aspirations of an increasing number of family members. For instance, in A lesson in diversifying AirAsia's digital journey can be traced back to 2002 when it went wholly ticketless and rolled out online booking through its website. KUALA LUMPUR: AirAsia Group Bhd is targeting its non-airline business to contribute around 60 per cent to group revenue in the next five years from the current 20 per cent following its business diversification. Renamed AirAsia Aviation Limited As AirAsia Group Portfolio Companies Expand. It has its first hub situated at the International Journal of the Community Development in Asia (JCDA) The partnering with Awair helps AirAsia to understand the condition of local market, so the company will have direction on how to enter and survive in the market by the help of an experienced partner (Awair). Malaysia's AirAsia Group Bhd plans to launch an air taxi service and the country's first drone delivery service as the budget carrier seeks to diversify amid the coronavirus pandemic, the company's CEO said on Saturday. Competition, however, is also growing and AirAsia and its market peers are increasingly . By 2002 AirAsia went from debts of $11 million to producing a profit. Ms Aireen joined AirAsia in 2006 as director of corporate finance and six years later she became the CEO of AirAsia Berhad. Malaysia's AirAsia Group plans air taxi, drone delivery service As part of the group's diversification push, it also aims to launch a ride-hailing service next month as COVID-19 continues to hit . Air Asia is declared as world's first airline point exchange platform (Asia, 2018) for their loyal members. Whether it's booking flights, hotels, travel packages and activities, shopping for branded products, or just looking for the best deals in town, the airasia mobile app makes everything much easier! AirAsia's philosophy is girded by the fact that they have been seen as a small airline competitor for many years. AirAsia rebrands RedBeat Ventures, presses on with biz diversification Details Janice Tan . With Tata owning 84% stake in AirAsia India, this first step in creating a single airline entity can be taken in a . Airline revenue declined 75% as the Consolidated Group operated 29% of capacity compared to 2019. On 20 December 1993, AirAsia was founded and started its business on 18 November 1996. . Kuala Lumpur, 23 November 2020 - The Asean super app airasia.com announces a partnership with Turkish Airlines in anticipation of the upcoming revival of international travel and to strengthen its offering as a travel and lifestyle super app. Diversification strategy is used when an organization see an opportunity either in an adjacent industry or in a completely different industry. total commitment to these principles makes the airline services of … For the full financial year 2020, the Consolidated Group posted a revenue of RM3.1 billion, down 74% from the previous year. SOLUTION:SOE09601: Strategic Management in a Global Context Coursework.Using Ansoff's matrix, analyse AirAsia and the Tune Group's strategy. The Consolidated Group¹ posted 4Q2020 revenue of RM267 million, lower by 40% quarter-on-quarter ("QoQ") and 92% year-on-year ("YoY"). Air Asia is the first airline which provide different routes that no one ever done before. Continuing Diversification. Product & Services: Airasia's Product And Services. Malaysia's largest airline is no stranger to financial services, having forayed into fintech in 2018 as part of its diversification strategy. At the moment, we have our team working on this upcoming service by AirAsia," Chief Executive Tony Fernandes said at the Youth Economic Forum 2021, state . airasia, The Asean Super App. For now, it is however unclear if AirAsia Group will venture into the music industry. The purpose of this analysis is identifying external factors (opportunities and threats) and internal factors (strengths and weakness) that AirAsia needs to consider in achieving its goals and objectives to be low cost carrier in the airline industry. Strategic The choice of diversification gives AirAsia and Tune Group a wide range of opportunities to expand sales and increase revenue. This airline is smashing records, over 75 destinations with over 183 routes, all over Asean and China and India, Australia. AirAsia is a subsidiary of its parent company Tune Group and has positioned itself . Soon after, it became the world's first airline to offer SMS and mobile web booking services — allowing customers to move away from traditional ticketing and travel agents. By 2013 AirAsia's profits hit 168% year-on-year growth. AirAsia Group recently undertook two tranches of private placements, raising RM336.46 million. Malaysia's AirAsia Group plans air taxi, drone delivery service As part of the group's diversification push, it also aims to launch a ride-hailing service next month as COVID-19 continues to hit . A travel and lifestyle mobile app that does it all for you. Abstract Case Intro 1 Case Intro 2 Excerpts Abstract. As the Tata group takes over Air India, it's looking to achieve synergies and cut operational costs. CAE has been AirAsia's training partner of choice since 2004. Launched in 2001 by its founder and CEO Datuk Sri Tony Fernandes, it has the distinction of being Malaysia's first low cost carrier. The venture did not stop there, it went on expanding to other malaysian cities and also singapore. During the global pandemic, AirAsia reported an annual loss of RM5.9 billion ($1.4 billion) in 2020. "Diversification is the key. It also means defining the characteristics of your product or service to meet the customers' needs. We have raised capital from a placement from reputable investors," Fernandes says. The key for any . Air Asia has reward points program for Citi credit holders. Ltd. Technology Resources. Since 2001, the airline has transported 600 million+ people across Asia Pacific. Airasia continues to expand worldwide through the innovation, efficient, passionate and right strategy. AirAsia Group launches digital platform to diversify business, seeks to raise capital. Malaysia AirAsia Group launches digital platform to diversify business amid Covid-19 Thursday, 24 Sep 2020 02:57 PM MYT BY DANIAL DZULKIFLY AirAsia Group CEO Tony Fernandes delivers his keynote address during the AirAsia Digital media briefing at NU Sentral, Kuala Lumpur September 24, 2020. The company could take a leaf from its earlier diversification experience, pre-coronavirus outbreak. Air Asia's backward, forward and horizontal integration is an attempt for diversification for increased growth of the organization. With its famous tagline, "Now Everybody Can Fly", it democratized air travel and made it accessible for the masses. CAE and AirAsia share a long-standing relationship that spans over 10 years, which started through the provisioning of pilot training capacity and training centre operation services. AirAsia's diversification plans were revealed last month, which signalled the company's transformation from a digital airline into a comprehensive lifestyle platform for everyone. As part of the group's diversification push, it also aims to launch a ride-hailing service next month as COVID-19 continues to hit air travel. As part of the group's diversification push, it also aims to launch a ride-hailing service next month as COVID-19 continues to hit air travel. It is associated with the airline industry and deals in air-travel carriers. Companies can also diversify within their own industry. She described the initiative as "strategic" from a business diversification point of view, to ensure that the airline is able to expand to different revenue streams and not be "overly reliant" on the travel sector. KUCHING: Analysts see AirAsia Group Bhd (AirAsia) rebranding its digital arm into AirAsia Digital, as a step in the right direction to diversify its earnings away from its traditional airlines . Airasia Super App is an entity under airasia Digital. The group is present in diverse industries like hotels, airlines, and entertainment. Air Asia's diversification strategy mainly assumes three forms, namely horizontal, forward, and backward integration (Herger and McCorriston, 2014 p.1). It set up a brick-and-mortar restaurant, Santan, in a mall in KL offering a variety of dishes available from its in-flight menu. AirAsia Berhad is commonly known as AirAsia and is of Malaysian origin. He understood the need of the time, need of the pandemic lock downs, the AirAsia brand launched a food delivery business in Kuala Lumpur and malaysians readily accepted that. There are a variety of reasons a company may consider diversification. Similar findings indicate that the company intends to raise $ 300 million to establish Air Asia Digital. In February 2013, AirAsia announced its plans to launch a regional airline in India in association with Tata Sons Ltd. and Telestra Tradeplace Pvt. Diversification of Tune Group. The term "product" refers to tangible, physical products as well as services. With air travel crippled by the Covid-19 pandemic, AirAsia led by its founder Tony Fernandes - often touted as the "Richard Branson of Asia" - has been vigorously stepping up the budget carrier's year-long diversification plan. In fact, the company that Air Asia has become in modern times alongside the Tune umbrella that consists of a rich portfolio of businesses has witnessed success due to diversification as a strategy for the group at large and thoughtful business strategies that have seen Air Asia grow to the biggest and most successful low cost carrier in the world. SEPANG, 14 October 2021 - As AirAsia's rapid transformation from an airline into a digital travel and lifestyle services group continues to gain strong momentum, the holding company for the airline Group has been officially renamed AirAsia Aviation Limited. Last November, airasia.com announced a strategic partnership with Turkish Airlines for cross-promotion of its flight inventory with AirAsia flights, and offer travel itineraries with discounted . Badly burnt by the travel downturn, AirAsia is attempting to reinvent itself. In a media statement, the company promises to provide passengers with "greater convenience, more competitive prices, and better income opportunity for drivers, in addition to a safe experience with a 100 per cent fully-vaccinated driver fleet." Fernandes explained that AirAsia's push for a "super app" began in 2018, but had now accelerated due to the Covid-19 pandemic. Recently it had gone from average of 1.50 RM, to over 2.50 RM in 4 months. For 1HFY21, AirAsia Group said cumulative net loss stood at RM1.35 billion versus a net loss of RM1.8 billion a year earlier as revenue fell to RM686.82 million from RM2.49 billion. AirAsia X is seeking to considerably increase its regional footprint and become a viable long-term partner for some of the world's leading freight forwarders as Capital A continues to diversify its business strategy. 4. For AirAsia X, it's about maximizing revenue when intra-Asia passenger demand remains subdued. Shortly after the launch of AirAsia's marketing solutions group, AirAsia Media Group, the airline has . Airlines AirAsia Diversifies Further With Plans for Air Taxis, Drone Delivery Service Mei Mei Chu, Reuters March 6th, 2021 at 8:30 AM EST Skift Take AirAsia CEO Tony Fernandes has made it. The airline doesn't want to be just an airline - it wants to be a lifestyle brand. — Picture by Shafwan Zaidon In fact, the company that Air Asia has become in modern times alongside the Tune umbrella that consists of a rich portfolio of businesses has witnessed success due to diversification as a strategy for the group at large and thoughtful business strategies that have seen Air Asia grow to the biggest and most successful low cost carrier in the world. AirAsia at first belonged to Diversified Resources Berhad (DRB-HICOM) and was later purchased by Tan Sri Tony Fernandes in 2001. Case Study Analysis: Air Asia and the Tune Group. At first, the company operated three Boeing 737s. AirAsia's head office and its main base is the Low Cost Carrier Terminal at Kuala Lumpur International Airport. In Southeast Asia, AirAsia was the first airline to promote e . Diversification continues at AirAsia X. Diversification strategy is distinct as an organization essentially moves out of its current primary activities by creating a new product for the new market. The low-cost carrier last month confirmed it was retrenching about 2,400 employees and. The Diversification - the best delivery guy in town ! The advantage of unrelated diversification is the development of detailed analysis of the environment and the business's own resources naturally brings enormously good financial results (Formulation of strategy, n.d). But it's a big jump from being a low-cost airline to being a business that might help your day run better. On 24 August 2021, Malaysian airline AirAsia announced its entry into the ride-hailing space with the launch of its new airasia ride in Kuala Lumpur.. for this reason, air asia has developed a unique set of guiding principles - simplicity, cost-efficiency and effectiveness. AirAsia operates 3,500 flights every week on domestic and international routes from nine regional hubs in Malaysia, Thailand (Thai AirAsia) and Indonesia (Indonesia AirAsia). AirAsia Group plans to raise USD300 million to expand its digital business arm, AirAsia Digital, as it intensifies the diversification of its business to offset the COVID-19 crippling effect on aviation.. Bloomberg, quoting "people with knowledge on the matter", reported the low-cost carrier was negotiating with . As Capital A continues to diversify its business model, AirAsia X is attempting to significantly boost its regional presence and become a viable long-term partner for some of the world's largest freight forwarders. During the early years, AirAsia experimented and implemented ways for diversification of its product market, being one of the lowest cost airlines and competing with other airlines (Poon & Waring, 2010). 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