The first stage of the grind analysis is the strengths analysis for Air Asia. There are some alone strengths of Air Asia that others company could non get the better of them. First and first. Air Asia has a really concerted and strong direction squad with strong connexions with the authorities and the air hose industry leaders. This is partially contributed by the diverse background of the executive direction squads which consists of industry experts and ex-top authorities functionaries. For illustration. Shin Corp ( once owned by the household of former Thai Prime Minister – ThaksinShinawatra ) holds a 50 % interest in Thai AirAsia. This has helped AirAsia to open up and capture a ample market in Thailand. With their strong working relationship with Airbus. they managed to acquire large price reduction for aircraft purchase which is besides more fuel efficient compared to Boeing 737 planes which is being used by many other air hoses.
Besides that. air asia direction squad is besides celebrated in scheme preparation and executing. The scheme thatthey have formulated at the beginnings was a cagey blend of proved schemes by other low cost air hoses is US and Europe. They are Ryanair’s operational scheme ( no frills. set downing in secondary airdrome ) . Southwest’s people scheme ( employee comes foremost ) and Easyjet’s branding scheme ( associating with other service suppliers like hotels. auto lease ) . On the other handAirAsia’sbrand name is good established in Asia Pacific. Besides the normal print media advertisement & A ; publicities. AirAsia’s top direction besides capitalised on publicities through intelligence by being really “media friendly” and freely sharing the latest information on Air Asia every bit good as the air hose industry.
Their partnership with other service suppliers such as hotels and inns. auto rental houses. infirmaries ( medical touristry ) . Citibank ( AirAsia Citibank card ) has created a really alone image among travelers. Alliance with Galileo GDS ( Global Distribution System ) that enables travel agents from around the universe to look into flight inside informations and do engagements hold besides contributed to their twine trade name name. Air Asia’s local presence in few states such as Indonesia ( Indonesia AirAsia ) and Thailand ( Thai AirAsia ) have successfully “elevated” the trade name to go a regional trade name beyond merely Malaysia. The links with Manchaster United ( one of the world’s most celebrated football squads ) and AT & A ; T Williams Formula One squad have farther boosted their image to a greater extend beyond merely the this part.
Meanwhile. AirAsia is the low cost leader in Asia. With the aid of AirAsia Academy. AirAsia has successfully created a “low-cost air hose mentality” among their work force. The work force is really flexible and high committed and really critical in doing AirAsia the lowest cost air hose in Asia. This low cost leading can allow all assorted income client to hold enjoy the low-cost air fees. The first-class use of IT have straight contributed to their promotional activities ( electronic mail qui vives and desktop doodad which was jointly developed with Microsoft for new publicities ) . trade name edifice exercising ( with over 3 million hits per month and on the most widely surfed booking engines in the universe ) as good maintain the cost low by enabling direct purchase of tickets by consumer therefore salvaging on air hose agent fees. The chief vision of the Air Asia that have make Air Asia being successful is the logo of “A low cost bearer which offers five-star service where everybody can wing. ”
Furthermore. Air Asia hasprovided assorted local Malaysia nutrients for all the Malayan clients andoffers in-flight services that promote Malayan cordial reception with their friendly and warm welcoming service. Besides of supplying a good ill will service. Air Asia besides has provided cyberspace and nomadic services as mediums for check-in and engagement. Customers can ever utilize their nomadic phone to function cyberspace and online booking the seats or militias. Furthermore. it is quite convenience for clients is. Air Asia provide fly agenda and the monetary values from Malaysia to other states or other states to Malaysia monetary value. Besides. clients can easy look into out the clip of fly agenda of Air Asia. With all the convenient. Air Asia go the most favorite air hose in Malaysia for the clients. On the other manus. Air Asia provides comfy seats. secure safety and a cleanliness environment for the client so those clients feel comfy during their fly times with the low monetary value.
Furthermore. Air Asia have a really strong booster and media of advertisement. Air Asia ever have publicities that attract clients involvements. Besides that. Air Asia have good selling accomplishments employees and engineering of advertisement which can act upon clients attractive forces and pick of purchase. Furthermore. Air Asia is a well-established LCC runing out of South East Asiaand it has operations in over 25 states and over 400 international and national finishs. and the most celebrated finish is Bali- Indonesia. Thailand – Bangkok. Korea-Seoul. Japan- Tokyo and Nagasaki. Taiwan and the other. Meanwhile. it has subordinates in Indonesia. Thai. Philippines. Japan and it has a swift size of about 300 aircrafts.
Air Asia does non hold its ain care. fix and inspection and repair ( MRO ) installation. It may be a good scheme when they foremost started with merely Malaysia as the hub and few planes to keep. But now. with few hubs ( Malaysia. Thailand and Indonesia ) and over 100 planes presently owned and about another 100 planes to be received in the following few old ages. AirAsia have to guarantee proper and uninterrupted care of the planes which will besides assist to maintain the overall costs low. It is a competitory disadvantage non to hold its ain MRO installation. Meanwhile. AirAsia receives batch ailments from clients on their service. Examples of ailments are about flight holds. being charged for a batch of things and non able to alter flight or acquire a refund if clients could non do it. Good client service and direction is critical particularly when competition is acquiring intense. Besides. this is besides due to non on excessively many paths as compared to market leader. Which mean Air Asia can’t provide many fly schedule compared to the MAS for illustration. And Air Asia has a really stiff competition in its sector.
OpportunitiesFirst and foremosts. there are 2 major events that are taking topographic point now or traveling to take topographic point in less than 6 months from now. First. is the of all time increasing oil monetary value. Second. is the “ASEAN OpenSkies” understanding that has been reached. The increasing oil monetary value at the first glimpse may look like a menace for AirAsia. But being a low cost leader. AirAsia an upper manus because its cost will be still the lowest among all the regional air hoses. Therefore. AirAsia has a great chance to capture some of the bing clients of full service and other low cost airline’s clients. However. there will be besides some decrease in overall travel particularly by insouciant or budget travelers. The “ASEAN Open Skies” allows limitless flights among ASEAN’s regional air bearers get downing December 2008. This will decidedly increase the competition among the regional air hoses.
However. with the “first mover” advantage every bit good as its strengths in direction. scheme preparation. scheme executing. strong trade name and “low-cost” civilization among its work force. this understanding can be seen as more of an chance. There is besides some chance to spouse with other low cost air hoses as Virgin to tap into their existing strengths or competitory advantages such as trade name name. set downing rights and set downing slots ( clip to land ) . The population of Asiatic in-between category will be making about 700 million by 2010. This creates a larger market and a immense chance for all low cost air hoses in this part including AirAsia.
On the other manus. Air Asia will hold the chance to advance Malayan touristry. which in return will increase the company’s gross. This is due to Air Asia has a good authorities and citizen relationship of Malaysia. Furthermore. Air Asia have contract with Malaysia in the ‘Cuti-Cuti Malaysia’ and the full client that relate to the ‘Cuti-Cuti Malaysia’ will advance the Air Asia fly. Meanwhile. within the South-East part. Air Asia can tap on a batch of chances since there is immense potency for clients that consist of foreign workers from neighboring states such as Indonesia. Myanmar and Vietnam. This besides contributes the chance of the increasing traffic from India and Indians prefer budget air hoses as they are cost witting.
MenacesThere are some of the menaces that face by the Air Asia SdnBhd. foremost. the air Asia faced certain rates like airdrome going. security charges and landing charges are beyond the control of air hose operators and this is a menace to all air hoses particularly low cost air hoses which tries to maintain their cost every bit low as possible. For illustration. Changi airdrome in Singapore charges SGD21 for every individual who departs from Singapore. Besides. AirAsia’s net income border is about 30 % and this has already attracted many rivals. Most of the full service air hoses have or be aftering to make a low cost subordinate to vie straight with AirAsia. For illustration. Singapore Airlines has created a low cost bearer Tiger Airways. On the other manus. Air Asia users’ perceptual experience that budget air hoses may compromise safety to maintain costs low.
Furthermore. Air Asia faced the menace of lifting fuel cost and labor costs. The monetary value of the fuel that keep on addition caused the Air Asia can’t be able to hold low cost production and expense high. effect either addition monetary value or cut down the fly path. Meanwhile. the employees of the Air Asia demand of the high wage and the addition cost of the preparation and staff public assistance cause Air Asia disbursals have been increased.