Report Of The Merits Of The Competitive Position For AirAsia (Assignment Slides)

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    RREPORTEPORT OOFF TTHEHEMMERITSERITS OOFF TTHEHE

    CCOMPETITIVEOMPETITIVE PPOSITIONOSITION FFOROR

    AAIRIRAASIASIA

    1Unity College International, Malaysia (2010)

    Goggle By;

    S Sripraba D/O Subramaniam

    Kaladevi D/O Nadarajan

    Chew Siew King

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    2Unity College International, Malaysia (2010)

    Introduction

    established in 1993

    Tony Fernandes (2001)

    invited Connor McCarthy-

    former director of Ryanairto join the team

    no frills - low airfares flight

    40%-60% lower Price

    then competitor

    Vision: Now EveryoneCan Fly

    Mission:

    Provide 'AffordableAirfares' without any

    compromise to Flight

    Safety Standards

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    3Unity College International, Malaysia (2010)

    Five Forces Analysis

    Threatsof potential

    entrants

    Bargaining

    Power of

    Suppliers

    Bargaining

    Power of

    buyers

    Threats of

    Substitute

    Products

    Rivalry

    within

    Industry

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    4Unity College International, Malaysia (2010)

    External Environment

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    SWOT Analysis

    5Unity College International, Malaysia (2010)

    Helpful(To achieving the objective)

    Harmful(To achieving the objective)

    Internalorigin(attributes of the

    environment) S w

    External

    origin(attributes of the

    environment)

    o T

    Do not have own MRO

    facility

    High Fuel Cost Increases

    Operational Costs

    Economic Fluctuations

    Other Airlines start cutcosts to compete

    Increasing Charges

    System failures

    Users perception

    Strong management

    team Brand name

    Low cost leader in Asia

    Excellent utilization of IT

    increasing oil price ASEAN Open Skies

    agreement

    Partner with other LCC

    as Virgin

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    Significant Resources

    Constructive & SupportiveManagement

    Possessed Highly Skilled Employees

    Capabilities To Reduce Cost

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    Capabilities

    Quick Turnaround Time

    Low-Cost Short Hauls

    High Rate Aircraft Utilization

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    Competitive Advantage

    Cost Leadership

    DifferentiationStrategy

    Market Share

    MarketSegmentationStrategy

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    External Factor

    Country Cultures

    and Lifestyles

    Differences

    Multi Country

    Competition

    Internet TechnologyService

    9Unity College International, Malaysia (2010)

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    10Unity College International, Malaysia (2010)

    Internal Weakness

    Strategy Mistake

    StrategyManagement

    Industry

    AttractivenessFactor

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    Conclusion

    Experimental Strategic Learning

    PEST & SWOT Analysis

    Strategic Resources

    11Unity College International, Malaysia (2010)

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    12Unity College International, Malaysia (2010)

    By;By;

    SriprabaSriprabaKaladeviKaladevi

    Chew Siew KingChew Siew King