INTERNAL ANALYSIS (7S)
McKinsey’s 7s framework will be utilized to analyze AirAsia’s internal environment. By using this framework, companies can understand their current situation and strategies so that they can improve company performance.
Table 1 McKinsey’s 7s framework
2.1 Shared values
The common shared value of AirAsia is to be the largest low cost airline in Asia by continually insisting on the development of the low-cost carrier model. AirAsia always tries to attain the lowest cost so that a majority of people can afford to fly through its planes and hubs. Although AirAsia expanded its business to many countries, the shared values of AirAsia as a Low-Cost Carrier never change. Value consistency across different markets helps AirAsia establish good brand reputation and awareness.
In order to make the low fare model possible, AirAsia applied the following strategies:
In order to ensure the safety of flying, AirAsia has a partnership with the world’s most renowned airplane maintenance providers and complies with world-class airline operations standards so that they can provide a safe flying experience with the lowest price.
High Aircraft Utilisation:
AirAsia Implements the regions fastest turnaround time at only 25 minutes, which ensures the lower costs and higher productivity of aircraft.
Low Fare, No Frills:
AirAsia also provides many service customization choices with the low fares, thus the “No Frills” slogan.
AirAsia ensures streamline operations processes are as simple as possible in order to make itself effective and productive.
Lean Distribution System:
AirAsia offers a wide and creative range of distribution channels so that they can make booking and travelling much easier.
AirAsia applies the point-to-point network to keep operations simple and effective. Most importantly, it can...
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