Air Asia Swot Analysis

Topics: Airline, Low-cost carrier, Southwest Airlines Pages: 6 (1929 words) Published: August 1, 2012

1.a) Air Asia’s vision:
• To be established as the leading low-cost carrier in the Asian region. AirAsia’s mission: • A low cost airline carrier that offers five-star service with 95% of on-time performance. • To be able to provide affordable airfares, at the same time promoting Malaysian hospitality and the local food. • To focus on customer’s needs by stimulating demand and offers the lowest fares, comprehensive distribution channel and developing various products and services. AirAsia’s objective: • Aims to carry 70 million passengers a year, within six years starting from2014. • Turn the low-cost carrier terminal at the KL International Airport into the regional hub for budget travel. • Plans to introduce more routes add frequencies and develop the existing ones.

b) Air Asia’s competence
• A low-cost no frills airline, with an extensive regional network in Asia that caters people of all income levels. AirAsia’s core competence: • Offers low-cost and affordable airfares
• Offers in-flight services that promote Malaysian hospitality and a huge variety of the local food .• Offers internet and mobile services as mediums for check-in and booking.

Air Asia’s distinctive competence:
• A low cost carrier which offers five-star service where everybody can fly.

c) Opportunities:
• Air Asia will have the opportunity to promote Malaysian tourism, which in return will increase the company’s revenue. • Within the South-East region, Air Asia can tap on a lot of opportunities since there is huge potential for customers that consist of foreign workers from neighbouring countries such as Indonesia, Myanmar and Vietnam. • Air Asia...

Air Asia- Porter's Five Forces

Porter’s five forces Michael E. Porter claimed that there are five competitive forces which can shape every industry by identify and analysis those five forces (appendix) and thus determine strengths and weaknesses of the industry. Those five forces are now used to determined Air Asia’s strengths and weaknesses which are shown as below: Threat of Entry

There is a high barrier entering airlines industry since it requires high capital to setup everything such as purchase or lease air craft, set up office, hire staffs, and etc. Thus, this has reduced the treat to Air Asia. Moreover, brand awareness is quite important in this industry. Thus, to enter this industry not only required high capital but also have to take some time to create brand awareness. Consumers always choose the product or service they really trust. Thus, instead of creating brand awareness, new entry has to create so called brand loyalty. Hence, this is reducing treat to Air Asia too. (Roy L. Miserly) However, the government legislation is one of the barriers for entering airlines industry. For example, MAS has been protected by Malaysia government on the route to Sydney and Seoul Inchon. Therefore Air Asia find itself very difficult getting a new route from government. This not only affects the timeline set by Air Asia but also influence their profit.

Power of suppliers
Every industry has someone to play the role as suppliers. Power of the suppliers is important as it will affect the industry. In airline industry, the power of suppliers is quite high since there are only two major suppliers which are Airbus and Boeing hence there are not many choices to airline industry. Nevertheless, the global economic crisis has limited the new entrant and also reducing the upgrade of planes in the immediate future. However, both suppliers provide almost same standard aircrafts and hence the switching to Air Asia is low. Moreover, Air Asia placed a large amount of order from Airbus in order to...

SWOT Analysis
---- The internal factors (strengths and weaknesses) and external factors (opportunities and threats) of Air Asia.

* Low cost operations
* Consist of less management level
* Do things effectively and focused management
* Penetrate and stimulate...
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