Evaluate the pricing strategies of Air Asia International Flight from Malaysia to China ( Or from Malaysia to any country within south east Asia).
First, you must demonstrate that the company has some power to set its own price (that is, it has some degree of market power). For example:
1… what is the structure of the industry it operates in?
2… What is its market share for the product?
3…. How concentrated is the industry?
It’s important to use economic analysis to evaluate the pricing strategies of the company and its main International flight product to China (Or from Malaysia to any country within south east Asia).
Make clear comparisons between the theoretical assumptions and predictions of economic pricing strategies and the strategies implemented by the company. Are the strategies adopted by the firm optimal? If so, why? If not, why not? How might they be improved?