Answer to Question #177906 in Marketing for Mcpherson Anju Nelson

Question #177906

What are the micro environmental sources or factors for success of airasia

Expert's answer
  • Marketing channel firms- AirAsia was able to meet its customers' needs despite its limited resources by cooperating with partners e.g. alliance bank branches in Malaysia for customers without credit cards, and authorized travel agents.

  • Internal environment- led by its CEO; Tony Fernandes, AirAsia is based on cooperative corporate culture. For example, the CEO encourages his pilots to cook breakfast for engineers every quarter to thank them for looking after their aircraft

  • its competitors- in 2001, Malaysia Airline System(MAS) dominated the domestic market, its high prices created a pent-up demand for low-cost air travel. AirAsia’s offer of 60% savings compared to MAS prices truly reflected the company’s promise to its customers, “ Now everyone can fly"

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