Question

market research of airasia
(200 words )

Answer 1

Five Forces Analysis:

Bargaining power of Suppliers - Many suppliers in this segments offer low cost aircrafts which means bargaining power is less for suppliers.
Bargaining power of buyers- Since Air Asia operates either in perfectly competitive market or Oligopolistic market across globe, buyers have higher choices and hence higher power.
Threat of New Entrants- Since new entries from lowcost airline providers can eat up AirAisas market share due to ease of taxation and licensing and deregulation in some markets, threat is higher substantially.
Threat of rivalry between existing firms- This is comparatively very high as margins are wafer thin and innovation is constantly evolving making it difficult for the industry as whole. Moreover crude oil prices atr volatile making margins go oscillating and dynamic.
Barriers to entry- Large initial investment, high marketing and distribution spends, constant innovation are biggest barriers.

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