Strategic Marketing Plan Research Paper Example | Topics and Well Written Essays - 1000 words

Strategic Marketing Plan - Research Paper Example publicize Asia is currently outlet 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(a) 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 proterozoic stages, is a strategic alliance which will be providing Air Asia with shared resources, including staff and scoot, that will expand its brand presence in fresh 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 retain the firm 165 million Euros by consolidating maintenance (Mukim, 10). SITUATION ANALYSIS Air Asia, the worlds 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. ... Further more(prenominal), since 2001, Air Asia has open up considerable cost savings and competitive analysis in its market by offering no frills, low cost dynamic pricing structures that can customers with low ticket prices and is modeled against a lean philosophy of supply and labor. However, in recent years, market entry barriers have been breaking down which is providing more competitive risks for new companies that are modeling their business models against a low-cost, no frills concept. Feng Chia University (2010) describes one of Porters Five Forces as the potential risks of high talk terms power of suppliers. In the case of Air Asia, Boeing company, its main supplier of airline fleet power, has very low switching costs due to the oligopoly and can indeed provide high prices for procurement and determine deadlines with Air Asia having little influence or authority in this process. This leads to high prices in the supply chain for fleet procurement. MARKETING STRATEGIES Post-merger, Air Asia needs to alter its promotional philosophy in order to become more competitive. It will now have shared resources with Air Asia X and Malaysia, thus providing more advertising expertise and resources to ensure successful delivery in this capital investment. Currently, Air Asia does not promote its strong organisational culture in any of its marketing, an opportunity for improved visibility and connection with consumers at the psychographic level. To investors, cultural issues are a very attractive benefit deep down a company as it leads to human capital advantages and ultimately competitive advantages (or even comparative advantages) in key profitable markets (Very, Lubatkin, Calori and Veiga, 167). The business should model new