About danone uk limited - Free Essay Example

Sample details Pages: 9 Words: 2621 Downloads: 2 Date added: 2017/06/26 Category Statistics Essay Did you like this example? EXECUTIVE SUMMARY Activia and Actimel are the two probiotic yoghurt brands that are currently being marketed by Danone in the UK. The current market strategy for these products is that they are healthy food and part of a healthy lifestyle. Some modifications were made in the currents marketing strategy, which include modifying the current target market for both brands. These brands have the potential to make Danone UK Limited the market leader in the United Kingdom. Don’t waste time! Our writers will create an original "About danone uk limited" essay for you Create order 1. DANONE: THE PROBIOTIC BRANDS; THE PRESENT AND THE FUTURE. Danone UK limited, is a UK based subsidiary of the French company group Danone, which has its organizational headquarters situated in France. Danone UK is into the production and marketing of dairy products and water. Most of group Danone brands are household names in the United Kingdom and internationally, and they include the probiotic dairy brands; Activia and Actimel (DATAMONITOR, 2009). The dairy division of the Danone group, is a leader in the production of dairy products worldwide, and presently holds about 22% of the dairy products global market share (DATAMONITOR, 2009). Group Danone has different subsidiaries in varying countries and each brand has a unique attribute and name that appeals to the region or country where they are marketed. 1.1. SWOT ANALYSIS The strength, weakness, opportunities and threats that are currently influencing Danone UK are highlighted in the table below. Table: 1 STRENGTHS * Health conscious company * Innovative Products and marketing * Customer oriented Research focused WEAKNESS * Lack of long term planning * uncorroborated claims OPPORTUNITIES * Health consciousness among populace * Growth in awareness on digestive health Probiotic bacteria awareness THREATS * New entrants * Increased competition * Stores own brand * Increase in cost of milk and production * Consumer unawareness on benefits of good bacteria * Government regulation on health claim of probiotic brands 1.2. PEST ANALYSIS GRID The grid below highlights some of the factors that affect the market presently and therefore gives an idea on the way forward in the present market environment. Table 2: POLITICAL ECONOMIC SOCIAL TECHNOLOGY Government debt Recession Unemployment Trends in Research Government policy Research sponsorship Advert withdrawal E-commerce Cold weather New technology Migration 2. MARKET ANALYSIS: UK YOGHURT MARKET The UK yoghurt market comprises of the spoonable yoghurts (pots), drinkable yoghurt (drinks) and tube yoghurts. (Mintel Oxygen, 2009) The market share value of the drinking yoghurt has seen a decrease in recent years as more people turn to more healthy option of yoghurt products that more often come in pots and tubes; the tube yoghurt is more attractive for children as parents can pack it into lunch boxes for them, thus this area has also seen a significant growth in recent years. The pots yoghurt market saw an increase in sales as they offer fewer calories and some come with health claims that lead to an increase in sales, the most active category in recent time has been the probiotic or healthy yoghurt category (spoonable) (Euromonitor,2009). Development of new products and increase in sales in some categories of the yoghurt market have mostly been due to health issues, as the behaviour of consumers suggest that they prefer a healthy lifestyle and also love to indulge, thus the development of new products that offer both a healthy and indulgence option. This trend has lead to the improvement in performance of the yoghurt market generally, in comparison to other desert options. The yogurt and Fromage Frais (pots and tubes) currently hold about 15.60% of the dairy market share in the UK (Data Monitor, 2009). The pots and tubes are the best performers in the market, and they hold about 85% of the market share, while the drinking yoghurt has been largely affected by competition from other markets that offer or claim to offer a more healthy option in form of drinks e.g. smoothies and fruits juices (or soft drinks). 2.1. MARKET SEGMENTATION Majority of the market share for 2008 as seen above was held by top manufacturers which include Muller, Danone and Yoplait. Supermarkets own brands are gradually gaining a large percent of the market share, with other brands constituting about 27% of the total market share. The probiotic yoghurt brands of Danone UK are doing well in the market currently, and account for about 19% of the UK yoghurt market share. 2.2 COMPETITOR ANALYSIS Muller dairy UK is Danone UK main competitor and the current market leader. Muller has being the market leader for a while and they function across the entire yoghurt category. Some of the Muller brands are not doing so well in the market, with some consumers perceiving it as too sweet and unhealthy, but with recent brand repositioning, re-launches and new products introduced in the market they are able to continually hold onto the number one spot. Weakness: The major weakness of the Muller brands is that consumers still perceive them as unhealthy, as they usually have high sugar content (Mintel Oxygen, 2009). 2.3 COMPETITIVE ADVANTAGE: Danone Has exclusive patent on the friendly bacteria (Lactobacilli casei Imunitass) used in addition with other bacteria in Actimel. All probiotic brands by Danone are considered healthy, hence the first choice for consumers who prefer a healthy way of life. 3. BRAND POSITIONING Probiotic yoghurts contain live bacteria that positively aid the consumers digestive system by improving microbial balance in the intestine. The probiotic brands Actimel and Activia are in the spoonable (Activia), drinking (Actimel) and the healthy option categories. In comparison, some major competing brands are perceived as unhealthy with great taste and very sweet e.g. Muller brands are perceived as unhealthy due to the sweet taste and the fact that the brands are positioned as all day snacks (Euromonitor , 2009). PERCEPTUAL MAP Healthy Actimel Activia Muller Vitality Poor taste Great taste Muller Light Unhealthy 3.1 ACTIVIA Activia is in the class of spoonable yoghurt (pots), and is in the healthy brand category. It contains the probiotic bacterium (friendly bacteria) that helps in improving the functions of the digestive system. Activia comes in fat free and low calorie flavours that consumers see as a great benefit; thus Activia has seen a rapid increase in market share since its launch in 2002, and it is one of the best performers in its category due to innovation which comprises health benefit and indulgence (Mintel Oxygen, 2009). It has a wide range of flavour in packs of four and eight pots and recently it has been proposed to introduce single pots for people with a busy lifestyle or people on the go. 3.2 ACTIMEL This is in the drinking yoghurt category, and contains the probiotic bacteria L.casei Imunitass; its main function is boosting and providing support for the immune system. Actimel has 13 different varieties, and 4 have zero percent fat content. Actimel aids the bodys immune system by fighting off germs when consumed on a daily or regular basis (Danone, 2009). 3.3 BRAND PERSONALITY GRID The consumer perception of Activia and Actimel are highlighted in the personality grid below (Table 3 and 4). ACTIVIA PERSONALITY VALUE BENEFIT ATTRIBUTE Physically fit Quintessential Indulging Wide variety range Healthy Innovative Convenient Handy Delightful Trustworthy Rich taste Relieves bloating Reliable Variety ACTIMEL PERSONALITY VALUE BENEFIT ATTRIBUTE Healthy Nutritious Boost immunity Wide product range Tasty Trusted Rejuvenation Different flavours Immunity Reliable 4. TARGET MARKET AND STRATEGY: THE PRESENT AND THE FUTURE Target Market Activia Women ACTIMEL Senior citizens Adults Rest of population 4.1 MARKETING STRATEGY (PRESENT SITUATION): The Probiotic brands are currently marketed as health beneficial products, with the emphasis on good bacteria, and the need to see the brands as part of a healthy way of life and not just as a snack. 4.2 ACTIVIA The current marketing strategy for Activia focuses solely on women and it was put in place in response to consumer demand for healthy products. Activia is positioned as an indulgent healthy food that helps women in reducing the feeling of being bloated especially after meals, and also aids in regulating the function of the digestive system. In a recent advert a woman is seen feeling more physically fit and flexible after having a pot of Activia. An interactive website has also been set up for Activia and the content is specifically for women as it gives them health tips and encourages them to share their story on the benefits of Activia. The website has a health based outlook that further reinforces the fact that Activia is a healthy brand. (Danone , 2009) Adults on the go are gradually being included in the current strategy, with the plan to introduce single pots of Activia (Mintel Oxygen, 2009). 4.2.1 DRAWBACK This strategy targets only the women in the population, and in some ways most women in a particular age demographic i.e. 25 and above. Although this strategy has been successful so far; what steps can be taken to prevent the present segment of consumers from shifting loyalty to a brand that is healthy, of good quality and is priced lower. What can be done to increase the present target market, as large segments of the population which include children, active adults and the elderly have not been included in this strategy. 4.2.2 MODIFICATION As manager of the probiotic brands of Danone UK Ltd, I will increase the target market to include families and the elderly. The family market will include children and men, while the elderly include men and women from age 55 and upwards. This segment of the population (55+) is going to see a rapid increase in sales and market share in the future as the population ages, and with the right marketing mix of price, distribution and place, this target segment offers great potential of growth for the future of the market (Mintel Oxygen, 2009). The family segment will come with a rebranding option that will target the women who have families. As women do most of the household shopping, when they buy Activia for themselves, they will have no option but to buy for their families. More flavours and packaging should be introduced to appeal to children and their parents. The current marketing strategy for the women consumers also have to be continued and improved to make the customers remain even when offered cheaper varieties, and to do this, loyalty programmes have to be introduced i.e. where consumers gain points for each pack of Activia bought. Although this might seem expensive for the company at the start of the program, as it has to be in conjunction with supermarkets, but in the long run it will be advantageous as we would have gained a loyal customer base. The present website also has to be improved to include healthy recipes tips as women love to cook healthy for their families. An interactive educational website should be introduced for children; activities on the website can include opportunity for children to pick their favourite Activia flavours, competitions that will include one where kids get the opportunity to mix different fruity flavours and submit their entries online, with opportunities to win prices. When children are loyal to their favourite brand (Activia) parents will have no choice but to also become loyal, in that way we also get families to be consumers of the Activia brand. Thus our market share will see an increase that will come from this segment of the population. 4.5 ACTIMEL The current marketing strategy for Actimel is capitalising on the immune system boosting characteristic of the probiotic bacteria in the drink and also the claim that it improves the body capacity to combat stress for people with busy lifestyles, through the action of the bacteria in the gut. In recent times, the company has also aimed to encourage the use of Actimel by patients in the hospital as a recent study shows that Actimel has the capacity to aid patients fight off infections. Advertising and promotional activities by Danone on Actimel has helped to boost the image of this brand by placing it as a brand that supports active lifestyles and is also healthy. 4.5.1 DRAWBACK An advert for Actimel was recently banned by the Advertising Standards Authority (ASA), that the claims made by Danone on Actimel (that it boosts the natural defence of children) were not supported by sound scientific evidence (BBC, 2009); a few consumers will brand Actimel as untrustworthy. To restore the image of Actimel, scientific evidence that proves that it helps boost the natural defence of children has to be peer reviewed before publishing. Although some health professionals have said it improves immunity, this has to be reinforced so the customers can have trust in the brand. The target population for Actimel has to re-defined, as it is currently vague (covers the whole segment of the population). 4.5.2 MODIFICATION The target market for Actimel has to be clearly defined, as it seems to target all the members of the population at the moment. The population has to be segmented, and each segment given a definite strategy and marketing plan that is specific for it. The proposed target market will be segmented as shown in fig 4. There is a lot of potential in targeting the elderly and hospital patients, as they need things to help boost their immunity, and Actimel can perform that function, hence there is an opportunity of growth here. The current market strategy of positioning Actimel as a healthy lifestyle choice is great, and will work well with all segments of the population especially the adults with an active way of life. The brand should be repositioned in the children segment, as the problem with the advert can affect sales that are generated. Thus positioning it as a healthy option for children, that offers the benefit of friendly bacteria, with proven scientific studies will enable Actimel regain the trust of consumers from this segment of the population. 5. CONCLUSION Actimel and Activia have been doing well so far in the UK market, and have the potential to do better in the future. The current marketing strategies for these two brands need to be improved on. The segmenting of the target population for Actimel will give a clearer view of the market strategy put in place to enable it gain more market shares from competitors like yakult and Muller vitality. The target market for Activia will need to be expanded in order to enable Activia gain market shares in the mainstream yoghurt market. It is perceived as a healthy brand, thus it has the potential to get more market share if the target population is increased. In the future the customer base of Activia and Actimel will remain loyal as loyalty schemes will be introduced to enable them stay faithful to the brand as long as the option of indulgence and healthy living at the right price is offered. New flavours that will keep consumers interested and innovative products will definitely make and keep Danone as a leader in the UK yoghurt market. References BBC. (2009, October). Healthy yoghurt advert banned. Retrieved December 1, 2009, from News Website: https://news.bbc.co.uk/1/hi/uk/8305918.stm Danone . (2009). Danone Activia. Retrieved December 29, 2009, from Your digestive health matters website: https://www.danoneactivia.co.uk/ Danone. (2009). Actimel L.casei Imunitass. Retrieved November 30, 2009, from How Actimel Can Help You: https://www.actimel.co.uk/Benefits/Default.aspx Danone UK Ltd. (2008). Danone. Retrieved November 30, 2009, from About Danone Mission Website: https://www.danone.co.uk/mission.htm DATAMONITOR. (2009). GROUPE DANONE. London: Datamonitor. Euromonitor . (2009). Yoghurt United Kingdom. London: Euromonitor International. Mintel Oxygen. (2009, May). Yogurt UK May 2009. Retrieved November 27, 2009, from Market Share and Product Positioning website: https://academic.mintel.com/sinatra/oxygen_academic/search_results/show/display/id=393957/display/id=460332#hit1 Mintel Oxygen. (2009, May). Yogurt UK May 2009. Retrieved November 27, 2009, from Segment performance website: https://academic.mintel.com/sinatra/oxygen_academic/search_results/show/display/id=393957/display/id=460332?select_section=460331 Mintel Oxygen. (2009, May). Yogurt UK May 2009. Retrieved November 28, 2009, from Table of content website: https://academic.mintel.com/sinatra/oxygen_academic/search_results/show/display/id=393957/display/id=460331?select_section=460345

The Current Population of the U.S.A.

The current U.S. population is more than  327 million people (as of early 2018). The United States has the worlds third largest population, following China and  Ã¢â‚¬â€¹India. As the worlds population is approximately 7.5  billion (2017 figures), the current U.S. population represents a mere 4  percent of the worlds population. That means that not quite one in every 25 people on the planet is a resident of the United States of America. How the Population Has Changed and Is Projected to Grow In 1790, the year of the first census of the U.S. population, there were 3,929,214 Americans. By 1900, the number had jumped to 75,994,575. In 1920 the census counted more than 100 million people (105,710,620). Another 100 million people were added to the United States in just 50 years when the 200-million barrier was reached in 1970. The 300 million mark was surpassed in 2006. The U.S. Census Bureau expects the U.S.  population to grow to reach these estimates over the next few decades, averaging about 2.1 million more people per year: 2020: 334.5 million2030:  359.4 million2040:  380.2  million2050:  398.3  million2060: 416.8  million The Population Reference Bureau succinctly summarized the state of the growing U.S. population in 2006: Each 100 million has been added more quickly than the last. It took the United States more than 100 years to reach its first 100 million in 1915. After another 52 years, it reached 200 million in 1967. Less than 40 years later, it is set to hit the 300-million mark. That report suggested that the United States would reach 400 million in 2043, but in 2015 that year was revised to be in 2051. The figure is based on a slowdown in the immigration rate and the fertility rate. Immigration Makes Up for Low Fertility The United States total fertility rate is 1.89, which means that, on average, each woman gives birth to 1.89 children throughout her life. The UN Population Division projects the rate to be relatively stable, from 1.89 to 1.91 projected to 2060, but it still  isnt population replacement.  A country would need a fertility rate of 2.1  to have a stable, no-growth population overall. Overall the U.S. population is  growing  at 0.77 percent a year as of December 2016, and  immigration plays a huge part  in that.  Immigrants to the United States are often young adults (looking for a better life for their future and their familys), and the fertility rate of that population (foreign-born mothers) is higher than for native-born women and projected to remain so. That aspect accounts for that slice of the population growing to be a larger share of the nations population overall, reaching 19 percent by 2060, as compared with 13 percent in 2014. By 2044 more than half of the people will belong to a minority group (anything other than  only  non-Hispanic white). In addition to immigration, longer life expectancy also comes into play with the growing population numbers, and the influx of young immigrants will help the United States support its aging native-born population.​ Shortly before  2050, the current No. 4 nation, Nigeria, is expected to surpass the United States to become the worlds third-largest nation, as its population is growing quickly. India is expected to be the most populous in the world, growing past China.

The Great Gatsby by F. Scott Fitzgerald - 684 Words

Everyone has heard of the phrase â€Å"stalker,† and everyone has heard of the concept of â€Å"love.† While these two are separate terms, what happens when the two become mistaken for one another? When does admiration become obsession? When is the line crossed from lover to stalker? In the novel The Great Gatsby by F. Scott Fitzgerald, the main character, Jay Gatsby, is a very wealthy man who has once had a fling with Daisy Buchanan. Gatsby and Daisy were once in love but time came and went. Gatsby went to war, and Daisy married another man. When Gatsby gets back from war, he makes himself into a new persona to capture Daisy’s attention in hopes of rekindling their love. However, Gatsby takes his love to the point of obsession. He makes unrealistic rumors about himself, wastes money on luxuries to capture her attention, and expects too much from the woman he claims to love. Gatsby’s love for Daisy is not real love. He has many stalker-like qualities, rath er than the romantic love so many are accustomed to. Gatsby does not quite grasp the true concept of love. As Daisy and Gatsby first met and fell in love five years prior, they do not know one another. They know who each other used to be, but that is simply a depiction of the past. When the two ex-lovers reunite, Nick states, â€Å"He literally glowed, without a word or a gesture of exultation a new well-being radiated from him and filled the little room† (Fitzgerald 89). Before Gatsby meets with Daisy, he is already radiating withShow MoreRelatedThe Great Gatsby by F. Scott Fitzgerald1393 Words   |  6 PagesF. Scott Fitzgerald was the model of the American image in the nineteen twenties. He had wealth, fame, a beautiful wife, and an adorable daughter; all seemed perfect. Beneath the gilded faà §ade, however, was an author who struggled with domestic and physical difficulties that plagued his personal life and career throughout its short span. 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Dorothy Parker Essay Research Paper free essay sample

Dorothy Parker Essay, Research Paper *** # 8220 ; Inventory # 8221 ; # 8216 ; Four be the things I am wiser to cognize: Idleness, sorrow, a friend, and a enemy. Four be the things I # 8217 ; d been better without: Love, wonder, lentigos, and uncertainty. Three be the things I shall neer achieve: Envy, content, and sufficient bubbly. Three be the things I shall hold boulder clay I die: Laughter and hope and a sock in the eye. # 8217 ; *** Dorothy Parker became popular shortly after the first universe war with her light poetry and short narratives. Although her plants may non look rough and unwomanly today, they were labeled in this mode at the tallness of her popularity. Her misanthropic poetries developed into something of a national craze, while giving the reader the feeling that she recklessly stretched a adult female # 8217 ; s equal rights to include sexual relationships. It seemed that unfaithfulness was included among these # 8220 ; rights. # 8221 ; Her supporters culled citations from her poesy that, while looking to be among the most cagey, were besides among the least sincere. These typify the evident deficiency of emotional scope displayed in her poetry. The techniques and subjects that many of her poetries tackle are as follows: # 8220 ; resentment, wit, humor, and love # 8221 ; ( Adams 519 ) , together with an absolute precognition of their futility. Love, particularly, plays a major function as a subject of Parker # 8217 ; s poetry. Many verse forms are associating to love and loneliness or decease as consequences of love. Parker one time said of an actress in a reappraisal of a drama that she # 8220 ; runs the gamut of emotions from A to B. # 8221 ; The same could about be applied to the writer herself ( Bloom 2537 ) . Her more acrimonious poetries become brief laies of animus. This facet is rather good demonstrated by the imagined hurt of others in # 8220 ; Frustration: # 8221 ; # 8216 ; If I had a glistening gun, I could hold a universe of merriment Rushing slugs through the encephalons Of the folks who give me pains ; Or had I some toxicant gas, I could do the minutes base on balls Bumping off a figure of Peoples whom I do non love. But I have no deadly weapon- Therefore does Fate our pleasure measure on! So they still are speedy and good Who should be, by rights, in hell. # 8217 ; The mental torment of many of the female characters in her work, brought about by love or a cute semblance thereof, is limpidly illustrated in two of her short narratives, # 8220 ; Dusk Before Fireworks # 8221 ; and # 8220 ; A Telephone Call. # 8221 ; In each, the telephone is someway used as a barbarous instrument of anguish against the female supporter. The telephone is used to do Kit experience hurt and covetous in # 8220 ; Dusk Before Fireworks: # 8221 ; # 8216 ; The really fine-looking immature adult male hung up the receiving system, and looked at the dial of his carpus -watch He seemed to be ciphering. So long for a immature adult female to make her place, and throw herself upon her sofa, so long for cryings, so long for exhaustion, so long for compunction, so long for lifting tenderness. Thoughtfully he lifted the receiving system from its hook and put it on terminal upon the small table.’ However, # 8220 ; A Telephone Call # 8221 ; is simply an agonising monologue in which a adult female waits for the pacifying call from her lover. The adult female # 8217 ; s ideas sporadically reveal her despair and ill will toward the prospective company, every bit good as the telephone itself. The soliloquy subsequently includes pathetic entreaties to anyone or anything that could perchance hear her supplications and portion or relieve her agony: # 8216 ; Maybe that # 8217 ; s what he is making. Possibly he is coming on here without naming me up. Possibly he # 8217 ; s on his manner now. Something might hold happened to him. No, nil could of all time go on to him. I can # 8217 ; t image anything go oning to him. I neer see him lying still and long and dead. I wish he were dead. That # 8217 ; s a awful want. That # 8217 ; s a lovely want. If he were dead, he would be mine # 8230 ; It would be all beautiful. I wish he were dead. I wish he were dead, dead, dead. # 8217 ; The # 8220 ; rejected lover dominated by her ain heartache and sense of unworthiness # 8221 ; is one of two characteristic functions portrayed by the female in Parker # 8217 ; s short narratives or poetry, the other function being the sardonic wisecracker or humor comparable to Parker herself ( Bloom 2538 ) . Parker concentrates much of her originative energy on composing both poesy and prose covering to a great extent with the loss and hurting brought approximately by love, or perchance the deformed emotions and desires that may from clip to clip resemble love. Parker was hopelessly romantic at bosom, though much of her work puts forth the face of a cynic. Parker # 8217 ; s slant toward mawkishness was # 8220 ; ever to be reckoned with # 8221 ; ( Labrie, 340 ) . Her poesy can alter from fluxing and notional to acerb and cutting, frequently within two lines of poetry. This quality comes out in # 8220 ; Comment # 8221 ; : # 8216 ; Oh, life is a glorious rhythm of vocal, A potpourri of extemporanea ; And love is a thing that can neer travel incorrect ; And I am Marie of Roumania. # 8217 ; Much of Parker # 8217 ; s poetry and prose dressed ores on love. More specifically, it concentrates on catastrophe, anguish, or bitterness brought about by love. Parker # 8217 ; s ain single struggle with her runaway emotion becomes ironically evident in her sarcasm of the simpering, sensitive female in her work. Many of her prima characters are the self-consciously honest, boisterous, alcohol-swilling adult females that the Roaring Twenties produced in that lost coevals. The ambiance was exhaustively contributing to Parker # 8217 ; s brief prose and poesy. The 1940s took off some of the radiance of her light poetry and short narratives. However, her work now has the chance to do a rejoinder based upon its crisp humor and smart sarcasm.

Company overview Air Asia free essay sample

In 2008, Air Asia was one of the most profitable airlines; the company was not even affected by the economic crises as it was comfortably earning a return on assets of 4% It came as no surprise as Air Asia won skytrax award as the world’s best low cost airline. Well deserving as well because in just 7 years it had efficiently expanded stretching over south East Asia, amassing an outstanding 11. 8 million customers from an initial 200,000, Air Asia created an empire for itself. In 2007, the company embarked on a new journey. They were trying to get into the long haul market, having achieved tremendous success in the short haul market using a simple basic model air craft, the low-cost carrier (LLC) they wanted to gain market share in the long haul market, using the same basic model, the LLC, which in times past previous airlines that tried the same strategy had failed. But having success in the previous market, Air Asia believed that by sticking to their pricing strategy, the only significant problem they would encounter in the long haul market would be competition. We will write a custom essay sample on Company overview: Air Asia or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Strategic issue There are 2 key strategic issues . Air Asia must choose between going into the competitive long haul market vs. remaining in the short haul market, therefore cancelling Air Asia X 2. Their ability to compete against already established long haul airlines who have efficient and working business models that give them competitive advantages like baggage- handling, frequent flyer promotions etc. Alternative suggestions Option one: merge Air Asia and Air Asia X Air Asia is an empire, established and profitable in its market segment. Air Asia X however is nothing close to becoming an empire is let alone be rofitable, instead of risking everything in a market where Air Asia X would struggle to compete, they are better of merging Air Asia and Air Asia X, with Air Asia the parent and Air Asia x the subsidiary, that way it is less risky and it could be easier for Air Asia X to launch under the same company Option two: discontinuing Air Asia X Air Asia could also decide to term inate the idea of Air Asia X. Apart from being risky, Air Asia operates of the LCC model which works effortlessly with the short haul market but is not the best model to use in the long haul market especially if you are new to a segment. This is why Air Asia should consider discontinuing Air Asia X and continue operating as a short to medium haul flights which is their strongest competitive advantage. Option three: create an alliance between Air Asia and a competitor Another alternative could be forming an alliance with a long haul airline. By doing this Air Asia could maintain focus on their primary objectives and also have a share in the long haul market regardless of the share size.