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
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
•Shareholders and etc.
Internal factors – The strengths and weaknesses to the organization. This business strategy theory is very useful to help aviation researchers to make sense the current competitive pressure under which airlines all around the world seem to be. Business Strategy is a formulation of how the business unit intends to compete in its given business sector.
Let us look the comparison between Mas and Air Asia in terms of their Internal and External Factors. Malaysia Airlines (MAS)
The Malaysian Airlines are tightly regulated by the government of Malaysia. Mas have won more than 100 awards in the past decade including the ‘Best Airline To Asia’ and ‘World’s Best Cabin Crew’. It is also remain as one of the only six carrier globally to be accredited as a ‘five-star airline’. This clearly shows that MAS is recognized world -wide and the brand name is recognizable. This shows that, there are customers wanted MAS’s services and customer’s preferences on this airline. Air Asia
Air Asia is a Low Cost Carrier (LCC). Air Asia operates domestic and international flights and is Asia’s largest low fare, no frills airlines. As a pioneered in low cost air transportation in Asia, Air Asia has several subsidiaries and associate company to support its operation. Air Asia operates over 200 flights a day over 75 domestic and international routes. Received many award such as the ‘Best Asian Low- Cost Carrier’ 2011, ‘World Best Low Cost Airline’, ATW Value Airline of The Year 2012 and many more.
MAS reflect competencies and capabilities of their core business which differentiate the company with other company based on value, price and services. Air Asia believes in Leanest Cost Structure, Maximise Shareholders' Value, Safety, Passion for Guests' Satisfaction, Transparency in decision-making and information sharing. When we study the two airlines we can define the SWOT Analysis. MAS’s strength can be Air Asia’s Weaknesses or vice versa. Promotion or Brand Awareness
MAS had put their full effort on their branding and publicity and it have revolved primarily around flight crew, different with most other airlines which tend to emphasize aircraft and an extensive route network. MAS have their own branding strategy which involves its flight attendants to promote its airline. It is to emphasize the hospitality of its cabin crew instead of the airline’s extensive network and its premium cabin and economy class cabin products. MAS runs an incentive training program for all cabin and its flight crew to ensure the customers are obtain the best service. Air Asia was able to penetrate and stimulate potential market by maximizing media exposure and brand awareness promotion without high marketing expenses. Its introduction promotion fare attracted huge publicity and travellers who used to pay higher prices. Besides that, Air Asia was major sponsorship for Manchester United, which involves global sponsorship and advertising. Cost Management
For MAS, other than employee turnover, the cost incurred was quite high such as an increase in fuel prices, increased in maintenance and repair cost, recruitment cost, low yield per available seat...
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