APA-1 PAGE-Strategy planning – due 23 feb

Review  AirAsia: The World’s Lowest Cost Airline (Attached)

and discuss the concept of cost advantage. Review textbook Figure 7.10, Using the

value chain in cost analysis.

A case study is a puzzle to be solved, so before reading and answering the specific

questions, develop your proposed solution by following these five steps:

1. Read the case study to identify the key issues and underlying issues. These issues are the

principles and concepts of the course area which apply to the situation described in the case


2. Record the facts from the case study which are relevant to the principles and concepts of the

course area issues. The case may have extraneous information not relevant to the current course

area. Your ability to differentiate between relevant and irrelevant information is an important

aspect of case analysis, as it will inform the focus of your answers.

3. Describe in some detail the actions that would address or correct the situation.

4. Consider how you would support your solution with examples from experience or current real-life

examples or cases from textbooks.

5. Complete this initial analysis and then read the discussion questions. Typically, you will already

have the answers to the questions but with a broader consideration. At this point, you can add the

details and/or analytical tools required to solve the case.

Case Study Questions:

1. Discuss how AirAsia achieves a cost advantage. Provide an in-depth analysis for AirAsia

Construct and use a value chain to show how AirAsia achieves its multiple cost advantages.

2. Are AirAsia’s cost advantages imitable by other airlines? Why or why not?

3. Can AirAsia effectively compete in long-haul air travel given the nature of its existing strategy and

the nature of the cost advantages that underpin AirAsia’s existing strategy?