AirAsia Company’s Strategy and Implementation

Subject: Company Analysis
Pages: 6
Words: 1412
Reading time:
6 min
Study level: Bachelor

The strategic management process within the global environment

AirAsia Company relies on the global market as part of its strategic management goals. Global market penetration is the company’s core target. As a beginner, the United States market is the entry market to global business. The company perceives the global market penetration approach as an avenue to the company’s global growth. As it stands, the company’s strategic marketing plan is to launch its products and services into new markets. The United States is an example where the air travel business is still unsaturated. The company’s global marketing strategy forms a critical part of the general organization strategy. In this case, the strategic marketing plan is to ensure that there is an improvement in both products and services. The issue of market viability is of great concern to AirAsia Company. Normally, the company’s capacity to compete with other similar companies at a global level is part of strategic management. Flight destinations and market segmentation are some of the elements that form the purpose of a strategic marketing plan. Improving flight services is also another important element.

In the global marketing approach, the company aims to achieve efficiency, competitiveness, learning opportunities, and flexibility (Doole & Lowe 206). As at the moment, the company’s economies of scale require to be reviewed. This is to ascertain as to whether the company benefits from the current customers and the local market. With opportunities from other market destinations, the company will be able to exploit and gain the advantage of resources in other countries. The global marketing strategy offers AirAsia with an opportunity to diversify its risks from its current domestic operations to international operations. The global marketing strategy for Air Asia requires to be evaluated from a cost-benefit analysis approach. This leads to adequate and effective coordination in business operations.

Role of corporate governance in strategic decision making

The implementation of the global marketing strategy is dependent on corporate governance (Sarra 265). In this aspect, corporate governance will be instrumental in the creation and setting of global marketing policies. AirAsia company global ventures will be coordinated by various organizations that are strategically positioned in different countries and destinations. Such policies will entail crafting a set of rules of conduct among air travel agencies and employees. Important is important that all stakeholders be familiar with the company’s code of conduct. This is important in creating a corporate culture that is well recognized around the globe.

Corporate governance will be essential in streamlining the corporate strategy inconsistency with the global marketing strategy. This action channels the organization’s activities to achieve a particular and predetermined outcome. For example, the desired outcome of the AirAsia is to penetrate global airline markets in the United States and other international countries. In this case, activities and resources will be channeled into achieving the desired goal.

Corporate governance is integral in supplementing actions that act as the pillars of the company’s global marketing strategy. In this accord, corporate governance will set evaluation standards to ensure the global marketing strategy survives the test of time (Fernando 265). Corporate governance ensures such is achieved through mergers, new pricing strategies, new market entry strategies, and implementing alternative activities.

It is the mandate of corporate governance to ensure that there is maximum monitoring of the global marketing strategy. Through corporate governance, decisions made by the company’s stakeholders are thoroughly monitored. In this respect, corporate governance ensures that any AirAsia investment is adequately maintained and guided for the realization of the desired outcome.

Through corporate governance, the company’s stakeholders can be held accountable for a decision made at AirAsia. The decision to venture into global business has its risks. In this case, decision-makers and stakeholders involved in this global venture are accountable for decisions made.

Environmental analyses as they relate to an organization

AirAsia has been a Malaysian airline that has served the country and other several countries for years. Perhaps, the airline can be termed as one of the cheapest airlines in the world considering its business and corporate culture. To begin with, Malaysia is a small country that also doubles as a developing nation. In this respect, all flights and operations conducted in the company are cost-effective. Example of such cost-effective operations is the inclusion of single-class flights, absence of free drinks, and few offices. However, the business environment for AirAsia is to change with the new global marketing strategy. The competitive environment in the global airline industry requires the inclusion of products and service differentiation. In this respect, AirAsia will require to adapt to new challenging environments that require agility in innovations. A similar environmental analysis for AirAsia can be described from a SWOT analysis perspective.

Some of the strengths for AirAsia are that the company has a good corporate culture and the company already has established markets both locally and internationally. This makes the company be a serious market contender in other parts of the world like in Europe, Africa, and Australia.

The company’s weakness in the global airline market is evidenced by the lack of innovations in the modern airline business. The company seems to streamline most of its operations to the extent of having few offices. For a business to remain competitive in the airline business, the inclusion of other third-party players in the industry is inevitable.

AirAsia Company has opportunities in other parts of the world. The airline is already established and reputable in the world. With improved services and operations, the company has appealing services that resonate well with its slogan Now Everyone Can Fly. With the increase of domestic and international flights, the airline can increase its flights considering Malaysia is a tourism destination.

AirAsia Company still has threats from other major airlines. In this case, it is difficult to have an entry into the United States market and other international markets. There are airlines in the United States that offer low flight rates and additional value-added services. It seems that most of the international airlines are well-coordinated and perceives customer service as a great deal in market competition.

Challenges in strategy implementation

Lack of sufficient leadership

In most cases, strategy implementation becomes a challenge if there lacks sufficient leadership (Kaplan 237). If AirAsia lacks better leadership and attention that emanates from the same, the strategy will likely be shelved. Leadership attention is critical in ensuring that the strategy implementation process is well planned, coordinated, and monitored.


For a reputable organization like AirAsia that has a long-standing culture, change to innovations is inevitable. Implementing a new strategy that is inconsistent with an organizations’ culture is a challenge. This challenge may emanate from managers, supervisors, or employees.

Unnecessary strategy

It is paramount that the global market strategy for the company remains realistic (Kluyver 5). During the strategy development and planning, the unrealistic strategy may seem viable. This misleads the managers during the strategy’s implementation when everything becomes weak, ambiguous, and unreal.

Strategies and potential strategic alternatives for different situations

Strategy alternatives

A market penetration strategy is of greater significance in increasing flight sales. AirAsia can use this strategy to penetrate the United States market using incentives that attract customers. For example, the airline can include free drinks, discounted flight rates, and flexible layoffs and connections to lure customers.

A market development strategy can also be significant in ensuring that the continuity of the existing company’s products and services appeal to new customers (Panda 524; Proctor 42). In this case, the company must realize the potential of its products and services among American customers. The implementation of this strategy can only be realized when applied in very new markets within the United States or other parts of the world.

A product development strategy can be significant in staging a market entry into the United States. In this respect, AirAsia requires to re-engineer their products and services to suit the customer needs of the American population. This strategy can be effective in making sure that AirAsia remains competitive in the United States.

A market diversification strategy is the most profound marketing strategy in a global market context. The diversification strategy seeks to unveil new products and services for diverse market segments (Collier & Agyei-ampomah 135). In this case, AirAsia will use a different product and service package for the United States market. This will be differentiated from its original services and other market services. This strategy is suitable for an airline that is seeking to obtain a market niche in a competitive industry.

Works Cited

Collier, M., Paul and Agyei-ampomah, Samuel. P3-performance strategy: Strategic, performance pillar. Philadelphia: Elsevier, 2009. Print.

Doole, Isobel and Lowe, Robin. International marketing strategy: Analysis, development and implementation. Hampshire: Cengage Learning EMEA, 2008. Print.

Fernando, A., C. Corporate governance: Principles, policies and practices. New Delhi: Pearson Education India, 2009. Print.

Kaplan, Jeffrey. Strategic IT portfolio management: Governing enterprise transformation. South Carolina: PRTM, 2005. Print.

Kluyver, Cornelis. Fundamentals of global strategy: A business model approach. New York: Business Expert Press, 2010. Print.

Panda, K., Tapan. Marketing management with CD. New Delhi: Excel Books India, 2009. Print.

Proctor, Tony. Creative problem solving for managers: Developing skills for decision making and innovation. New York: Routledge, 2009. Print.

Sarra, Janis. Corporate governance in global capital markets. Vancouver: UBC Press, 2011. Print.