The purpose of this report is to analyze the operation of the organization according to the principles of strategic management. It is focused on three scopes which are PESTLE analysis, SWOT and Porter’s five forces. The data used in this report were gathered from internet, books and journals.
1.0 Introduction
AirAsia, company that provides lowest cost flight. AirAsia was a representative of the lowest fares with the slogan “Now everyone can fly”. The scope of business includes domestic Malaysia and international, it includes 25 countries in the world. AirAsia corporate headquarters is in Kuala Lumpur international airport. Thought they provide lowest cost but they can still operating profits. AirAsia was established in 1993 and it was started operations on the 18 November 1996.Initially, AirAsia has set up a government owned company, it’s named DRB-HICOM. Then Tony Fernandes bought the company liabilities in 8 September 2001 and estimation RM40 million debts. AirAsia has rapidly successful developed into the cheapest and largest airline since 2001.
Figure 1: Tourists used AirAsia Airline
1.1 Vision
AirAsia want to be the bottom price airline in Malaysia with provide high quality service to people.
1.2 Mission
All employees of AirAsia same like a big family work together and growing together.
Become a well-know company for ASEAN brand
Everyone can fly with AirAsia
1.3 Goal
Become a regular pattern of low fares.
1.4 Objectives
AirAsia has used some strategies to achieve a regular pattern of low fares. Another objective include: high aircraft utilization, safety first, low fare, streamline operations, lean distribution system and point to point network.
2.0 AirAsia’s Competitors
The competitors of AirAsia are Malaysia Airline System Berhad (MAS), Ryanair Holdings, EasyJet, Singapore airlines Limited, Southwest Airlines, Thai Airways International and Melindo Airways. MAS are the main competitor of AirAsia. Both are operating flights in
References: Airasiaberhad. Retrieved April 15, 2013, from http://www.ukessays.com/essays/ management/airasia-berhad.php Cary, W.P.M Cary, W.P.M. (2009). Project Studies: Enabling Technology in Airline Industry. Retrieved April 15, 2013, from http://www.skcs.hk/AirAsia.pdf Chan, T.H Filiz K. McNamara.AirAsia: The world’slowest air fare. Retrieved April 15, 2013, from, http://www.academia.edu/1508051/AirAsia_The_Worlds_Lowest_Cost_Airline Porter’s 5 forces analysis on AirAsia What is PESTLE Analysis. (n.d.). Retrieved April 14, 2013, from PESTLE ANALYSIS website: http://pestleanalysis.com/ Stockport, G SWOT Analysis for AirAsia. (July 23, 2008). Retrieved April 10, 2013, from Strategic analysis and thought: http://kulothunkan.blogspot.com/2008/07/swot- analysis -for-airasia Books Bhat, A. & Kumar, A. (2008).Management principles, processes, and practices. India: Oxford University Press. Combley, R., Potter, E., Sargeant, H., Wedgeworth, L., & Watt, D. (2007). Macmillan English dictionary (2nded.). Oxford: Macmillan Education. Ahmad, R. (May 21, 2010). Asian journal of management cases.Airasia: Indeed the Sky’s the Limit. Retrieved April 20, 2013 from Sage Publication website: http://ajc.sagepub.com/content/7/1/7 Ghosh, P & Sharma, R Ismail, E.S (2010). The rise of tony fernandes and airasia in malaysia. Retrieved April 19, 2013,from Monash University website: http://asaa.asn.au/ASAA2010/reviewed _papers/ Ismail-Shahril_E.pdf Kho, C., Aruan, S