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    SM Product Life Cycle (AirAsia)

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    muazabdulghaffar
    AirAsia has gone through the typical product life cycle stages as a low-cost airline in Malaysia: [1] In the introductory stage, AirAsia struggled with high debts and limited distribution after being purchased in 2001, focusing on creating awareness and modifying its offerings. [2] During the growth stage, AirAsia's sales increased rapidly as it launched new routes and undercut competitors' fares, opening new hubs and starting international flights. [3] Currently in the maturity stage, AirAsia's growth has slowed as the market becomes saturated, though it continues extending its product line. [4] The document does not provide details about AirAsia entering the decline stage.

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    SM Product Life Cycle (AirAsia)

    Uploaded by

    muazabdulghaffar
    2K views3 pages
    AirAsia has gone through the typical product life cycle stages as a low-cost airline in Malaysia: [1] In the introductory stage, AirAsia struggled with high debts and limited distribution after being purchased in 2001, focusing on creating awareness and modifying its offerings. [2] During the growth stage, AirAsia's sales increased rapidly as it launched new routes and undercut competitors' fares, opening new hubs and starting international flights. [3] Currently in the maturity stage, AirAsia's growth has slowed as the market becomes saturated, though it continues extending its product line. [4] The document does not provide details about AirAsia entering the decline stage.

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    AirAsia has gone through the typical product life cycle stages as a low-cost airline in Malaysia: [1] In the introductory stage, AirAsia struggled with high debts and limited distribution after being purchased in 2001, focusing on creating awareness and modifying its offerings. [2] During the growth stage, AirAsia's sales increased rapidly as it launched new routes and undercut competitors' fares, opening new hubs and starting international flights. [3] Currently in the maturity stage, AirAsia's growth has slowed as the market becomes saturated, though it continues extending its product line. [4] The document does not provide details about AirAsia entering the decline stage.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    2K views3 pages

    SM Product Life Cycle (AirAsia)

    Uploaded by

    muazabdulghaffar
    AirAsia has gone through the typical product life cycle stages as a low-cost airline in Malaysia: [1] In the introductory stage, AirAsia struggled with high debts and limited distribution after being purchased in 2001, focusing on creating awareness and modifying its offerings. [2] During the growth stage, AirAsia's sales increased rapidly as it launched new routes and undercut competitors' fares, opening new hubs and starting international flights. [3] Currently in the maturity stage, AirAsia's growth has slowed as the market becomes saturated, though it continues extending its product line. [4] The document does not provide details about AirAsia entering the decline stage.

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    of 3

    Subject STRATEGIC MANAGEMENT Code

    Topic PRODUCT LIFE CYCLES Assignment Individual


    Date
    Name MAZNI BINTI ABDUL GHAFFAR Programme BBA (ENT)

    1) Select one local product and subscribe the 4 stages in the product life cycles.

    AIRASIA BERHAD
    Introduction AirAsia Berhad
     Established in 1993 and commenced operato on 18 November 1996.
     2 December 2001, it was purchased by former Time Warner executive Tony
    Fernandes’s company Tune Air Sdn Bhd from ownership of HICOM Holdings Bhd for
    the token sum of only RM1, and with only 2 Boeing 737-300 aircraft together with
    RM40 million in debt.
     AirAsia Berhad is a Malaysia-based low-cost airline.
     The largest low-fare, no-frills airline and a pioneer of low cost travel in Asia.
     AirAsia is proud to be a truly ASEAN (Association of South East Asian Nation) carrier.
     Operates scheduled domestic and international flight
    PRODUCT LIFE CYCLE
    A concept that provides a way to trace the stages of a product’s acceptance, from its
    introduction to its decline.

    Introductory Stage
     No competiton
     High-failure Rates
     In debt
     Limited Distribution
     Promotion focuses on awareness and information
     Frequent product and Modification
     Market Penetration Strategies

    Growth Stage
     Increase rate of sales
     Entrance of competitors
     Fernandes turned the company around, producing a profit in 2002 and launching new
    routes from its hub in Kuala Lumpur
     undercutting former monopoly operator Malaysia Airlines with promotional fares as
    low as MYR 1 (US$0.27).
     AirAsia opened a second hub at Senai International Airport in Johor Bahru near
    Singapore and launched its first international flight to Bangkok.
     AirAsia subsequently started its Thai AirAsia affiliate, and began flights to Singapore,
    Indonesia, Macau, China (Xiamen), Philippines (Manila), Vietnam, Cambodia, Brunei
    and Myanmar.
    Maturity Stage
     Declining sales growth
     Saturated market
     Extending product line
     profits increased by 168% on a year-over-year basis.

    Decline Stage

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