Air Asia vs Mas

5156 WordsJun 30, 201221 Pages
Q1.Analyze the current situation facing MAS and Air Asia using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place. The goal of an organisation is to reach and achieve optimal purpose. They want to make the most out of their atmospheres and existing environments in order to their accomplishment. External factors are the one that affect an organization indirectly, such as: •Political •Social-cultural •Technological •Economical •Legal External factor are the opportunities and threat to the company according to SWOT Analysis. There also Internal factors which need to be considered, that is which involves directly to an organization such as: •Customers…show more content…
low in business travels to other location or from Malaysia to other location. Overall, it’s due to pricing and revenue management, sales and distribution, brand presence in foreign countries and relationship. MAS need to expand its business extensively throughout the country. They have to diversify their new routes and operate new destinations to be recognized. The cost factor was taken into consideration particularly fuel –have increased. The price of fuel has increased rapidly by over 168%. The increase in fuel alone has added nearly USD64 billion to the industry cost structure. Air Asia has managed to achieve lower prices to attain high passenger loads, market share and profitability by eliminating provision of costly inflight services, flying a standard fleet, selling tickets to passengers directly and minimizing labour and overhead costs. Its successful negotiations for its low aircraft rates, low long-term maintenance contracts rates and low airport fees, enable Air Asia to provide the lowest fares. As a result, Air Asia was able to reduce its overhead and investments in equipment. Changes in customer preference Customers control the purchasing power due to needs and desire. This is because of demographic factors, psychographic and geographical factors. MAS introduced a new concept of flying. This is to enables customers to have a change in life while flying with MAS. For example, introducing varieties of meals from continental to western;

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