Question

Air Asia Sdn Bhd.

• Evaluate the pricing strategies it employs for its core product/business in order to increase its market share and profitability within its industry (at the national level).
• Build up a case study based on Air Asia Sdn Bhd
• First demonstrate that the company has some power to set its own price (that is, it has some degree of market power), for example: what is the structure of the industry it operates in? What is its market share for the product? How concentrated is the industry?
• Use economic analysis to evaluate the pricing strategies Air Asia Sdn Bhd has adopted for its main products.
• Make clear comparisons between the predictions of the economic theories covered in the module and the empirical evidence for Air Asia Sdn Bhd.
• Are the strategies adopted by Air Asia Sdn Bhd optimal? If so, why? If not, why not? How might they be improved?