But being a low cost leader, AirAsia an upper hand because its cost will be still the lowest among all the regional airlines. In other words, the vision statement is like a road map leading the route to a company intends to take in developing and strengthening its business. Looks like you’ve clipped this slide to already. The political context of globalization though is a main consideration for Air Asia but it is diffuse and spread over other factors as discussed subsequently. For Air Asia, it is subject to intense regulatory scrutiny by Environmental Protection. Here, at ACaseStudy.com, we deliver professionally written papers, and the best grades for you from your professors are guaranteed! As an air operator, Asia concerned is the air worthiness of it airplane. This would create a larger market and a huge ooportunity for all low costing airlines in the region, including AirAsia. Yes. Green issues have also been a concern for Air Asia, it tow it aircraft to a general boarding area, saving the huge amount of electricity used to operate an aero bridge while minimizing taxiing time, which significantly reduces fuel burn. Strategic Analysis is considered to be a relevant part of any organization and any firm which is involved in the dynamic business environment will be required to ens The companies though the nature of these influences are inextricably linked to social, legal and political factors. Air Asia Strategic Analysis - Free download as Word Doc (.doc / .docx) or read online for free. Collectively, the population of Asian middle class will be reaching 700 million by the end of 2010. A vision is practically involves thinking strategically about the future direction of a company. An example would include Singapore Airlines which created Tiger Airways. Their business success/failure is dependence on their air plane availability. Microeconomics & Strategy This study uncovers Air Asia strategic analysis by scanning the impact of micro and macro environment. It describes the internal affection of the industry with elaborating competitive rivalry amongst the firms in the industry to the bargaining power of customers and suppliers. Scribd is the world's largest social reading and publishing site. Based on their slogan “Now Everyone Can Fly” have fulfilled the wants for those passengers who choose to fly with low cost airlines especially students, those family with lower income and low income earners. Porter Five Forces Model In an article by AirFinance Journal, it is understood that suppliers’ power for Air Asia is high as AirAsia can only choose from two aerospace giants; Airbus and Boeing to purchase its fleet of planes. Other political decision that played a significant role in Air Asia performance is the open Airspace policy. Introduction. Acasestudy.com © 2007-2019 All rights reserved. Air itself was a spin off from a government run company HRB – Hicomm Berhad it was verge into liquidation when Tony Fernandez bought it and turnaround it into profit running company. The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines is US and Europe. However, with the “first mover” advantage as well as its strengths in management, strategy formulation, strategy execution, strong brand and “low-cost” culture among its workforce, this agreement can be seen as more of an opportunity. Air Asia has addressed this with providing training in adapting to the new work culture. Case study: AirAsia. However, airline accidents and the liquidation of major airline carriers has countered this monopolisation. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. But after several years later, the government allowed FireFly to operate from the old Subang Airport. Thus, AirAsia has a great opportunity to capture some of the existing customers of full service and other low cost airline’s customers. 1. Now AirAsia is the most successful budget air operator. There are possibilities of some potential customer might be lost due to this technology hiccup. By James, Jordan, Joshua and Sasha Recommendation AIR ASIA X STRATEGIC ANALYSIS -Differentiate offering by expanding range of ancillary products -Differentiate with fold-flat seating - Increase appeal to wider market - Capture greater proportion of the market Recommendation And most importantly, users’ perception that budget airlines may compromise safety to keep costs low may also affect them attracting more customers. Lastly, the threat of new entrants is currently high at the moment, with. We use cookies to give you the best experience possible. Hence the desire to provide the promised lowest value will be impacted. With it success as an air operator, more company see that there are potential for them to have the slice of the market hence more new low-cost operator was established by the traditional air operator to compete with Air Asia. About Air Asia : Air Asia is the leading low cost carrier of Asia. Sociological Linked to the economic factors above social changes have significantly impacted Air Asia in relation to changing demographics in terms of the customers it targets. Air Asia’s local presence in few countries such as Indonesia and Thailand have successfully “elevated” the brand to become a regional brand beyond just Malaysia. Clipping is a handy way to collect important slides you want to go back to later. Fourthly, AirAsia is also known to be a low cost leader in Asia. An analysis of the External Environment would be done so as to facilitate a direct comparison between the generic elements where AirAsia has been founded in. See our Privacy Policy and User Agreement for details. Threats Firstly, it would involve certain rates like airport departure, security charges and landing charges which would be beyond the control of airline operators and this would thus be a threat, especially to low cost airlines which tries to keep their cost as low as possible. Keywords: airasia vision, airasia company goal. Strategic analysis -Air asia case study 1. Legal Legal considerations are again more a concern directly for Air Asia in terms of the regulatory. Many full service airlines are creating low cost subsidiary to compete directly with AirAsia. The regulation of airline in some parts of Asia inhibits competition to take place which results to the government being manipulative and restrictive to its growth leading to limited alternatives for Asian people to only have few choices in air travel. The rate of customer complaints on Airasia service are quite high (Complaint board,2017). Strategic Analysis on AirAsia - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. Being the best in the industry and the top digital brand in Asia, AirAsia now flies to over 70 destinations in 19 countries. Now customize the name of a clipboard to store your clips. Explain your answers? Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. This would include their brand name, landing rights and land timings. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. AirAsia is a Malaysian low cost airline. 1.0 Executive Summary This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). Furthermore, certain areas are dangerous to travel by land, especially on the Thai-Cambodia border, therefore travellers would like to travel across borders safely. Search Search Weaknesses in the SWOT analysis of Air Asia. However, more budget airlines are appearing. An example would be India, where the government would buy a share of certain cooperation and turn it state-owned, and driving potential investors out of the country. As a result, the strategic analysis will involve the PESTLE analysis, Porter’s five forces, value chain analysis and the SWOT analysis (Porter, 2012). In the first case, he increasing oil price at the first glance may appear like a threat for AirAsia. Page 2 Contents Microeconomics and Strategy Market structure and industry analysis 3. SWOT analysis of Airasia Strengths Firstly, Air Asia has indeed a strong management team. An example would be taken with Malaysian government, where government owned companies are more concentrated around the country, therefore AirAsia expansion to venture into the intra-market would be less welcomed by the government as they are confronted by a predicament the growth of an a budget airline cooperation rather than the growth of the state-owned Malaysian Airlines. After several years later, the population of Asian middle class will be still the lowest among the... Airline accidents and the Airport for it could operate it subsidiaries need to take cognisance of factors! Airport charges s $ 20 for every person who departs from Singapore significantly impacted upon by changing externalities the! Strong management team search The strategic analysis of AirAsia investing into new markets and also slows down the of. To show you more relevant ads a result of processes of globalization opening up more and. 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