AirAsia

1.0 Table of Content Topic Page 1.1 Brief History on AirAsia 2 – 3 2.0 Macro-Environmental PESTEL Analysis 4 - 12 2.1 Undertake a Macro-Environmental Analysis using the PESTEL Framework 2.2 AirAsia Inflation Rate in Malaysia 2.3 Brief Definition on Unemployment Rate 3.0 Porter’s Five Forces 13 - 16 3.1 Analyze the competitive forces within the industry using the Porter’s Five Forces Framework 4.0 Carry out a Customer Analysis 17 5.0 Analyze

Resources AirAsia’s net profit ending Jun 2005 was reported US$29.2 million, a 126% increase year-on-year. The end of June 2005 financial summary showed that AirAsia, the leading low cost airline in Asia, had a huge reserve (bank and cash

Problem Statement In 2001, AirAsia was founded by Tony Fernandes. After six years, Fernandes realized the company should create a airline separated from AirAsia to focus on the low cost long-haul market which he called AirAsia X. Azran Osman-Rani was appointed to the become the CEO of the newly established company. The company had an initial success by being the first mover. However, there were some problems that they had to face along the way as they were in a completely new market using an untried

STRENGTHS WEAKNESSES Article taken from WSJ dated Wednesday May 02, 2012 “AirAsia Flies Better Without Flag Carrier” • largest budget carrier (Economy of scale) • Very strong management team • Very good in strategy formulation and execution (Economy of scale) • Strong brand equity - AirAsia’s brand name is well established in Asia Pacific (Learning Curve) • Cost advantage (Economy of scale) • Market share leadership- AirAsia is the low cost leader in Asia (Economy of scale) • International alliances

Air Asia AirAsia Berhad, is a Malaysian low-cost airline. It operates scheduled domestic and international flights and is Asia's largest low fare, no frills airline. AirAsia was a pioneer of low cost flights in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. However, as of 5 February 2009, AirAsia has implemented allocated seatings across all AirAsia flights, including in their sister airlines, Indonesia AirAsia and Thai AirAsia. Its main

Next, one of the strengths for AirAsia company would be it has a very strong management team and also significant links with government and airline industry leaders. This can be said so is because the executive management teams are mostly built up by relevant industry experts and ex-top government officials. In addition, without the protection of national airlines brought about by deregulation, building alliances as strategy became necessary for many airlines to stay competitive and gain access

In the case of Air Asia strategic management, describe a strategy that made by CEO of Air Asia. And analyze how Air Asia becomes winning the award of the airline. According to the following vision: “To be the largest low cost airline in Asia and serving the three billion people who are currently under served with poor connectivity and high fared”. As you can see, the vision statement,it is about wanting to be the largest low-cost airline company in Asia and delivering low fares and concern about

Safety culture: Thai AirAsia encourages safety environment by proceeding Safety Management System with safety committee and reporting to CEO to ensure that the company achieve the sustainable safety culture. Risk management: The company motivates all employees to realize the importance of risk management by participating in all processes according to corporate culture. Corporate Resource Marketing Marketing of Thai AirAsia is evaluated by Marketing Mix, product, price, place, and promotion. The

which refer to the organization’s ability to produce a product or service at a cost below competitors can achieve between AirAsia and other airlines. However, the implementation of cost leadership strategies requires a consistent focus on driving costs to generate profit margin. Instead of the offering lower cost price, customer also considering the differentiation offered by AirAsia which they are willing to pay at any prices. Choosing the differentiation and characteristics of the products and service

strengths are internal factor that reflect a company’s core competencies. A company can completely control, and fully utilize its strengths to gain benefits for the company. Airasia Berhad has its own strengths that enable itself to become more competitive in the airline industry. 2.1.1 Strong Connection With Outsiders Airasia Berhad has a very strong and cooperative management team. The company acquires executive management members team with different background from different industries’ professionals