Case Study Analysis: Air Asia and the Tune Group.
This case study describes how Air Asia and the Tune Group has capitalised on a leading position in the global fast food / eat at home industry thanks to its unique resources and capabilities, and core competencies. However, Air Asia and the Tune Group’s strategic position continues to be challenged by the macro-external
environment and its core competitors, which puts into the question the sustainability of their competitive advantage. The case study presents extensive information about Air Asia and the Tune Group’s strategy and key business functions and processes. The objective of your case analysis will be to assess your understanding of their capabilities and core competencies in the value chain and how far these have influenced the success of growth strategy within its competitive environment.
Questions
1. Using Porter’s five forces model, analyse the attractiveness of the South East Asian airline industry. In your answer, discuss the barriers to entry a new entrant might face in this industry. (20%)
2. Conduct a value chain analysis to determine Air Asia and the Tune Group’s organisational capabilities and advance this analysis by using additional framework(s) to interpret their core competencies. (40%)
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3. Discuss how Air Asia and the Tune Group has applied their existing capabilities to grow and diversify their business. Using Ansoff’s Product/Market Matrix, analyse the case evidence on which growth directions Air Asia and the Tune Group have pursued and make recommendations on future growth options. (30%)
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