Airasia
1.0 Table of Content
Topic Page
1.1 Brief History on AirAsia 2 – 3
2.0 Macro-Environmental PESTEL Analysis 4 - 12
2.1 Undertake a Macro-Environmental Analysis using the PESTEL Framework
2.2 AirAsia Inflation Rate in Malaysia
2.3 Brief Definition on Unemployment Rate
3.0 Porter’s Five Forces 13 - 16
3.1 Analyze the competitive forces within the industry using the Porter’s Five Forces Framework
4.0 Carry out a Customer Analysis 17
5.0 Analyze the competitor’s by conducting competitor profiling 18 - 20
5.1 Recommendations with regards to competing with competitors
6.0 References 21 6.1 Internet References
1.1 Brief History on AirAsia
Prior to its take-over by Tune Air Sdn. Bhd. in 2001, AirAsia was owned by DRB-Hicom, a government-linked company (AirAsia, 2008). Its airline had not been able to take off and was eventually sold to Tune Air, literally for a song, for a token sum of RM1.00 or US$0.26 together with an accumulated debt of RM40 million (AirAsia, 2008). Tune Air was formed by Tony Fernandez and four entrepreneurs, some of whom had worked with the music industry which perhaps inspired the name of the company.
According to Fernandez , it is not easy to sell the idea of operating an airline particularly to the government. In fact, his request for a license to operate from the government was rejected on two previous attempts. Finally, with Pahamin A Rejab, the former Secretary General of the Ministry of Transportation, they presented their case to the then Prime Minister, Dr. Mahathir Mohamad, who eventually gave the green light, not for a new company, but to take over the ailing AirAsia from DRB-Hicom.
Many were skeptical that Fernandez could succeed in transforming the ailing, capital-intensive company especially during the travel slump soon after the destruction of the World Trade Center in New York in 2001.
Within two years, Fernandez proved the critics wrong
Topic Page
1.1 Brief History on AirAsia 2 – 3
2.0 Macro-Environmental PESTEL Analysis 4 - 12
2.1 Undertake a Macro-Environmental Analysis using the PESTEL Framework
2.2 AirAsia Inflation Rate in Malaysia
2.3 Brief Definition on Unemployment Rate
3.0 Porter’s Five Forces 13 - 16
3.1 Analyze the competitive forces within the industry using the Porter’s Five Forces Framework
4.0 Carry out a Customer Analysis 17
5.0 Analyze the competitor’s by conducting competitor profiling 18 - 20
5.1 Recommendations with regards to competing with competitors
6.0 References 21 6.1 Internet References
1.1 Brief History on AirAsia
Prior to its take-over by Tune Air Sdn. Bhd. in 2001, AirAsia was owned by DRB-Hicom, a government-linked company (AirAsia, 2008). Its airline had not been able to take off and was eventually sold to Tune Air, literally for a song, for a token sum of RM1.00 or US$0.26 together with an accumulated debt of RM40 million (AirAsia, 2008). Tune Air was formed by Tony Fernandez and four entrepreneurs, some of whom had worked with the music industry which perhaps inspired the name of the company.
According to Fernandez , it is not easy to sell the idea of operating an airline particularly to the government. In fact, his request for a license to operate from the government was rejected on two previous attempts. Finally, with Pahamin A Rejab, the former Secretary General of the Ministry of Transportation, they presented their case to the then Prime Minister, Dr. Mahathir Mohamad, who eventually gave the green light, not for a new company, but to take over the ailing AirAsia from DRB-Hicom.
Many were skeptical that Fernandez could succeed in transforming the ailing, capital-intensive company especially during the travel slump soon after the destruction of the World Trade Center in New York in 2001.
Within two years, Fernandez proved the critics wrong
References: 1. Azeman Ariffin & Gerald Goh Guan, Background Studies, [online PDF] Retrieved Date: September 01st, 2012 Retrieved Date: September 01st, 2012 3. Affin Bank Berhad, AirAsia Airlines Inflation Rate [online HTML] Retrieved Date: September 04th, 2012 4. Bureau of Labor Statistics, AirAsia Unemployment Rate [online HTML] Retrieved Date: September 04th, 2012 URL: http://www.businessdictionary.com/definition/unemployment-rate.html 5. James Manktelow & Amy Carlson, Porters 5 Forces, [onlineHTML] Retrieved Date: September 05th, 2012 Retrieved Date: September 06th, 2012 URL: http://blogs.wsj.com/deals/2012/07/31/airasia-bid-draws-indonesia-scrutiny/