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YOUR NAME HERE YOUR COURSE HERE YOUR TUTOR HERE DATE HERE EXECUTIVE SUMMARY Air Asia is one of the highest performing, competitive companies in its Malaysian and Indonesian markets. The business operates with a dynamic, lean model of business by which customers receive low ticket prices for a no frills flight experience (Air Asia, 2005; O’Connell & Williams, 260).
Air Asia is currently going through the preliminary merger processes with Malaysian Airlines and Air Asia X, as the business attempts to diversify its competitive advantages. Air Asia X is currently a low-performing carrier in its operating market and the intent of this merger is to consolidate technological and maintenance expertise to achieve short-run cost savings synergies. The Malaysian scenario, in its early stages, is a strategic alliance which will be providing Air Asia with shared resources, including staff and fleet, that will expand its brand presence in new markets for a new customer base that is intended to ultimately be a full-fledged merger with this competitor. The synergies achieved through the Air Asia X and Malaysian Airlines merger should save the firm 165 million Euros by consolidating maintenance (Mukim, 10). SITUATION ANALYSIS Air Asia, the world’s lowest cost airline company, is currently operating in an oligopolistic market. This is one that is characterized by the presence of few firms and where there is heavy reliance on branding and promotion to sustain competitive advantage. ...
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