Malaysian Airlines
Malaysia Airline System (MAS) is one of the Government Linked Companies in Malaysia. For the past three years, MAS has been undergone dramatic changes that turnaround the position of the company inside the competitive and ever challenging airline industry. From its lowest and disastrous experience in 2005 to achieving success within 2 years as well as bracing the impact of global economic crisis in past two years. The purpose of this report is to analyze MAS key competitive position and its strategic decision effectiveness and give recommendation in order for MAS to sustain its competitive position.
1.0 EXTERNAL ANALYSIS
1.1 Remote Environment
The remote environment factors are summarized in Appendix B.
1.1.a) Economic
The year 2008 was the toughest year that MAS and the entire airline industries had encountered. Firstly, MAS was hit by the high fuel price in the first 8 to 9 months of the year which had increases up to USD$182 per barrel and affected the overall operating cost. Later, while MAS were figuring out the solution to this problem, once again MAS was slammed by the economic crisis and downturn which pressured the yield and profit margin. The world's economy today is also being treated by the uncertainty and volatilities which can affect share price and trust from the shareholders.
1.1.b) Social
As a developing country, Malaysia has increase the number of professionals who earn more and travel much more frequently overseas. Thus, they want the services that can offer them time efficiency and good services. MAS has responded to them by offering business class ticket that offer the 5-stars services. However the world recently has been shocked with the wave of Influenza A (H1N1 virus) global pandemic and the increasing rate of terrorist attack. These situational factors have somewhat changed the perception of airline travellers to some degree by claiming that it is no longer safe to travel by air. Due to this many people are reconsidering their
1.0 EXTERNAL ANALYSIS
1.1 Remote Environment
The remote environment factors are summarized in Appendix B.
1.1.a) Economic
The year 2008 was the toughest year that MAS and the entire airline industries had encountered. Firstly, MAS was hit by the high fuel price in the first 8 to 9 months of the year which had increases up to USD$182 per barrel and affected the overall operating cost. Later, while MAS were figuring out the solution to this problem, once again MAS was slammed by the economic crisis and downturn which pressured the yield and profit margin. The world's economy today is also being treated by the uncertainty and volatilities which can affect share price and trust from the shareholders.
1.1.b) Social
As a developing country, Malaysia has increase the number of professionals who earn more and travel much more frequently overseas. Thus, they want the services that can offer them time efficiency and good services. MAS has responded to them by offering business class ticket that offer the 5-stars services. However the world recently has been shocked with the wave of Influenza A (H1N1 virus) global pandemic and the increasing rate of terrorist attack. These situational factors have somewhat changed the perception of airline travellers to some degree by claiming that it is no longer safe to travel by air. Due to this many people are reconsidering their