Harvard Case - AirAsia India 2017
"AirAsia India 2017" Harvard business case study is written by M. R. Dixit, Sanjay Kumar Jena. It deals with the challenges in the field of Strategy. The case study is 35 page(s) long and it was first published on : Jun 25, 2018
At Fern Fort University, we recommend that AirAsia India implement a multi-pronged strategy to achieve sustainable growth and solidify its position as a leading low-cost carrier in India. This strategy will focus on leveraging its core competencies in cost leadership, operational efficiency, and digital transformation while adapting to the unique challenges and opportunities of the Indian market.
2. Background
AirAsia India, a joint venture between Tata Sons and AirAsia Berhad, entered the Indian aviation market in 2014 with the ambition of replicating the success of its Malaysian parent company. The case study focuses on the company's performance in 2017, a year marked by intense competition, rising fuel prices, and a challenging regulatory environment. Despite initial success, AirAsia India faced significant challenges, including profitability issues, market share erosion, and increasing pressure from established players like IndiGo and SpiceJet.
The key protagonists in the case are:
- Mittu Chandilya, CEO of AirAsia India, who is tasked with navigating the company through turbulent times and achieving sustainable growth.
- Tony Fernandes, CEO of AirAsia Berhad, who provides strategic guidance and support to the Indian subsidiary.
- The Indian aviation industry, characterized by fierce competition, evolving regulations, and a growing demand for air travel.
3. Analysis of the Case Study
To understand AirAsia India's challenges and opportunities, we will utilize several analytical frameworks:
a) Porter's Five Forces:
- Threat of new entrants: High due to low barriers to entry and the presence of several new players.
- Bargaining power of buyers: Moderate, as passengers have multiple airlines to choose from, but low-cost carriers offer limited differentiation.
- Bargaining power of suppliers: Moderate, as fuel prices are volatile and aircraft manufacturers hold significant power.
- Threat of substitute products: Moderate, as rail and road transport offer alternatives for shorter distances.
- Competitive rivalry: Very high, with multiple airlines vying for market share and aggressive pricing strategies.
b) SWOT Analysis:
Strengths:
- Strong brand recognition: AirAsia's global brand recognition and reputation for low fares.
- Cost leadership: Efficient operations, lean organizational structure, and focus on cost optimization.
- Digital transformation: Extensive use of technology and data analytics for operations and customer engagement.
- Strong partnerships: Collaboration with Tata Sons and AirAsia Berhad for resource sharing and expertise.
Weaknesses:
- Profitability challenges: Difficulty in achieving profitability due to intense competition and rising operating costs.
- Limited network: Smaller network compared to established players, hindering market reach and customer convenience.
- Operational challenges: Delays and cancellations due to infrastructure constraints and regulatory hurdles.
- Lack of differentiation: Limited product differentiation beyond low fares, making it difficult to attract price-insensitive customers.
Opportunities:
- Growing Indian aviation market: Increasing demand for air travel driven by economic growth and rising disposable incomes.
- Expansion of regional routes: Potential for growth in underserved regional markets with limited competition.
- Focus on niche segments: Targeting specific customer segments like business travelers or leisure tourists with tailored offerings.
- Partnerships and alliances: Collaborating with other airlines and travel companies to expand reach and offer bundled services.
Threats:
- Intense competition: Existing and new players aggressively vying for market share, leading to price wars and margin pressure.
- Regulatory changes: Unpredictable regulatory environment with potential for increased taxes and restrictions.
- Fuel price volatility: Fluctuations in fuel prices significantly impact operating costs and profitability.
- Economic slowdown: Potential impact on demand for air travel due to economic uncertainty and reduced disposable incomes.
c) Value Chain Analysis:
AirAsia India's value chain is characterized by a strong focus on cost optimization and operational efficiency. The company leverages its core competencies in technology and analytics to streamline processes and enhance customer experience. However, the company needs to improve its product development and marketing strategies to differentiate itself from competitors and attract a wider customer base.
d) Business Model Innovation:
AirAsia India's business model is based on the low-cost carrier (LCC) model, which relies on cost leadership and operational efficiency to offer competitive fares. However, the company needs to explore business model innovation to adapt to the evolving Indian market. This could involve:
- Expanding product offerings: Introducing value-added services like premium seating, baggage allowance, and in-flight entertainment.
- Developing niche segments: Targeting specific customer segments with tailored offerings and pricing strategies.
- Leveraging digital channels: Enhancing online booking and customer service through mobile apps and social media platforms.
4. Recommendations
To achieve sustainable growth and profitability, AirAsia India should implement the following recommendations:
a) Strategic Positioning:
- Focus on niche segments: Target specific customer segments like business travelers or leisure tourists with tailored offerings and pricing strategies.
- Expand regional network: Focus on underserved regional markets with limited competition and high growth potential.
- Develop a stronger value proposition: Differentiate itself from competitors by offering additional services and enhancing customer experience.
b) Operational Efficiency:
- Optimize fleet utilization: Implement efficient scheduling and maintenance practices to maximize aircraft utilization and reduce operating costs.
- Leverage technology and analytics: Utilize data analytics to optimize flight schedules, pricing strategies, and customer service.
- Streamline operations: Implement lean management principles to reduce waste and improve efficiency across all departments.
c) Marketing and Branding:
- Enhance brand awareness: Implement targeted marketing campaigns to increase brand visibility and reach new customer segments.
- Develop a strong brand identity: Communicate a clear and consistent brand message that resonates with target customers.
- Leverage digital channels: Utilize social media, mobile apps, and online advertising to engage with customers and build loyalty.
d) Financial Management:
- Control operating costs: Implement strict cost-control measures to mitigate the impact of rising fuel prices and other expenses.
- Optimize pricing strategies: Utilize dynamic pricing models to adjust fares based on demand and competition.
- Explore strategic partnerships: Collaborate with other airlines and travel companies to share resources and reduce costs.
e) Organizational Culture:
- Promote innovation and agility: Foster a culture of experimentation and continuous improvement to adapt to changing market conditions.
- Empower employees: Encourage employee engagement and provide opportunities for professional development.
- Build a strong leadership team: Recruit and retain talented leaders who can drive growth and navigate challenges.
f) Corporate Social Responsibility (CSR):
- Implement sustainable practices: Reduce environmental impact through fuel-efficient operations and responsible waste management.
- Support local communities: Engage in social initiatives to benefit local communities and build positive brand image.
- Promote diversity and inclusion: Create a workplace that values diversity and provides equal opportunities for all employees.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of AirAsia India's strengths, weaknesses, opportunities, and threats. They are aligned with the company's core competencies in cost leadership, operational efficiency, and digital transformation. Moreover, they consider the unique challenges and opportunities of the Indian aviation market, including intense competition, evolving regulations, and a growing demand for air travel.
The recommendations are also supported by quantitative measures, such as:
- Increased market share: Focusing on niche segments and expanding regional networks can lead to increased market share and revenue growth.
- Improved profitability: Optimizing operations, controlling costs, and implementing efficient pricing strategies can improve profitability and enhance shareholder value.
- Enhanced customer satisfaction: Leveraging technology and analytics to personalize customer experiences and provide exceptional service can increase customer satisfaction and loyalty.
6. Conclusion
AirAsia India has the potential to become a leading low-cost carrier in India. However, the company needs to implement a multi-pronged strategy that focuses on leveraging its core competencies, adapting to the unique challenges of the Indian market, and embracing business model innovation. By focusing on niche segments, optimizing operations, enhancing brand awareness, and promoting a culture of innovation, AirAsia India can achieve sustainable growth and solidify its position as a market leader.
7. Discussion
Other alternatives not selected include:
- Mergers and acquisitions: Acquiring smaller airlines or regional carriers to expand network and market share.
- Vertical integration: Investing in ancillary businesses like ground handling or catering to reduce reliance on external suppliers.
- Aggressive pricing: Implementing a price war strategy to gain market share, but this could lead to unsustainable losses.
Risks and Key Assumptions:
- Regulatory changes: Unpredictable regulatory environment could impact profitability and operational efficiency.
- Fuel price volatility: Fluctuations in fuel prices could significantly impact operating costs.
- Economic slowdown: A decline in economic activity could reduce demand for air travel.
- Competition: Intense competition from established players could limit market share growth.
8. Next Steps
To implement these recommendations, AirAsia India should:
- Develop a detailed strategic plan: Outline specific goals, objectives, and action plans for each recommendation.
- Allocate resources: Secure the necessary funding and personnel to support the implementation of the strategy.
- Monitor progress: Track key performance indicators (KPIs) to measure progress and make adjustments as needed.
- Communicate effectively: Keep stakeholders informed about the strategy and its progress.
By implementing these recommendations and taking a proactive approach to managing risks, AirAsia India can navigate the challenges of the Indian aviation market and achieve sustainable growth and profitability.
Hire an expert to write custom solution for HBR Strategy case study - AirAsia India 2017
more similar case solutions ...
Case Description
The AirAsia India 2017 (AAI) case presents the situation faced by Tony Fernandes, the CEO of the AirAsia group of companies, in 2017, when he had to respond to the changes in aviation policy made by the Ministry of Civil Aviation (MCA). As per the changes, an airline operating in India could start its international operations without having five years of domestic flying experience provided it deployed 20 of its aircraft or 20% of the total capacity, whichever was higher, for domestic operations. The objective of this case is to help discuss issues relating to sustaining late entry and exploring new growth opportunities in the context of regulatory changes.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - AirAsia India 2017
Hire an expert to write custom solution for HBR Strategy case study - AirAsia India 2017
AirAsia India 2017 FAQ
What are the qualifications of the writers handling the "AirAsia India 2017" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " AirAsia India 2017 ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The AirAsia India 2017 case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for AirAsia India 2017. Where can I get it?
You can find the case study solution of the HBR case study "AirAsia India 2017" at Fern Fort University.
Can I Buy Case Study Solution for AirAsia India 2017 & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "AirAsia India 2017" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my AirAsia India 2017 solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - AirAsia India 2017
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "AirAsia India 2017" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "AirAsia India 2017"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study AirAsia India 2017 to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for AirAsia India 2017 ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the AirAsia India 2017 case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "AirAsia India 2017" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).