Business Strategy: SWOT Analysis Of Airasia

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Executive Summary
In the year 2001, Dato’Sri Tony Fernandes and Dota Kamarudin Meranun had bought over Air asia for RM 1.00 with a RM 40 million debt. Airasia has been expanding rapidly ever since and become the leader of low cost airline in Asia and the pioneer of low cost. Airasia continues to expand worldwide through the innovation, efficient, passionate and right strategy.
This study will use PESTLE model, SWOT analysis and Porter’s Five Force Model to examine the extensive strategy analysis of Airasia that has enabled it to remain its competitive advantage and leader in the industry. Firstly the PESTLE will be used to analysis the current Macro and Micro environment. SWOT analysis will be used to analysi AirAsia strengts, weakness, opportunities and threats. Further analysis using the Porter’s Five Force Model to understand Airasia strategic positioning and competitive advantage within the industry. The study concludes by Airasia must re-evaluate their strategy from time to time to stay competitive in this industry, with recommendation to provide more value to customers in order to create brands loyalty.

A) Using the PESTLE framework, you need to undertake an audit of the
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The stragtegy Airasia needs os not just how to reduce cost and smoothen then operation activities, but how to stand out and differentiate itself from other competitors by provide more value to the customers. For example, Airasia have the competitive advantage for using the diversification strategy whereby started to venture into Insurance, hotels, telecommunication and car rental business. For example, Airasia can offer a value package which includes all hotels, car rental, Insurance in a package to the customers for cheaper price, and in other hand able to save customers some hassle to look for all these

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