MISSION

To be the best company to work for

whereby employees are treated as part of
a big family
Create a globally recognized ASEAN brand
To attain the lowest cost so that everyone
can fly with Air Asia
Maintain the highest quality product,
embracing technology to reduce cost and
enhance service levels

VISION
To be the largest low cost airline in
Asia and serving the 3 billion people
who are currently underserved with
poor connectivity and high fares.

HISTORY OF AIR ASIA

Air Asia was established in 1994 and
started the operations on 18
November 1996.
On 2 December 2001, Air Asia debt is
about USD 11 million (MYR 40
million).

PEST ANALYSIS

Political
Malaysia
Fares charged by Malaysia
government were the lowest
International
Airline markets in ASEAN
- India and China
Political uncertainty in India, Thailand
and Indonesia

Economic
Malaysia
Gross Domestic Product (GDP) increase
AirAsia low cost strategies gaining
attraction in the region
Oil price
International
H1N1 influenza
Economic reform Doi Moi

Social
Malaysia
Main sector Malaysia economy is the tourism
AirAsia commits to "Safety First
International
Towards increased transportation
consumption
Jain-vegetarian foods for India market
Vietnam trained workforce, charges relief to
airlines

Technology
Malaysia
AirAsia provides the online service
Introducing the GO holiday
From Airbus A320 replace Boeing 737
International
USTDA - long-term effort to promote Indian
aviation infrastructure
Vietnam will become the worlds third fastestgrowing market for international passengers
and freight

Porter 5 forces

Threat of new
entry

High capital
Brand
awareness &
brand loyalty
Government
legislation

Bargaining
power of
supplier

Air Bus &

Boeing
Global
economic
crisis

Bargaining
power of
buyer

Sensitive to
price
Switch to
other airlines
service

Threat of
substitute
products

Indirect
substitute
Direct
substitute
Internet

Rivalry among
existing
competitor

Limited
customer
Other low
cost airlines

SWOT ANALYSIS
STRENGTHS

Good promotion campaigns

Strengthen geographic position

Expanding skill workers

Brand awareness through CSR

Positive towards competition

Utilization of aircraft and efficient operation

WEAKNESSESS

Termination of Joint Venture

Poor services

Websites down

OPPORTUNITIES

Additional aircraft

Growth expectation

THREATS

Advertisements problem

Financial speculation

Effect of fuel price

Authority interferences and policy

Easy access

SWOT MATRIX
SO STRATEGIES

WO STRATEGIES

Focus on improving basic

quality of services to improve
prices
(S1, S2, S3, O1, O2, O3)
Soft bundling tour packages (S1, S2, S5, O1, O2)

ST STRATEGIES

Fuel conscious aircraft

(S2, S5, S6, T3)
Attractive designs of
advertisements (S1, S4, T1,
T4)

Have the expertise on their

own maintenance and
services
(W2, W3, O1, O2, O3)
Establishing a tele-sales
hotline
(W2, W3, O1,O3)

WT STRATEGIES

Train ground crew for higher

airborne time (W2, T3, T4)
Negotiator organisation
within AirAsia staffs
(T1, T2, T3, T4, S3, S4, S6)

SPACE ANALYSIS

INTERNAL ANAYSIS

EXTERNAL ANALYSIS

FINANCIAL POSITION (FP)

Profit year end 2012 RM 4.95 billion

STABILITY POSITION (SP)

5.0

(Increase by 10%)

Low-cost flight, increase in revenue by

3.0

60%

4.0

Maintain high profitability & growth

3.0

Gain regional expertise (AXN)

1.0

Corporate Social Responsibility

1.0

Collapse of AirAsia Japan

Fuel price increase to about USD 100

-1.0

per barrel

-3.0

Seasonal demand

-5.0

Joint Venture Tata Sons & Singapore

Airlines (India Market)

COMPETITIVE POSITION (CP)

Establishment brand name globally and

INDUSTRY POSITION (IP)

-5.0

domestically.

Fast on-line and advance booking,

-5.0

Kuala Lumpur prefer gateway into

Customer Loyalty (36.97 million
including

(Air Asia X)

Increase demand in overseas routes

(Air Asia X)

-3.0

Malaysia and South-East Asia Region

Deregulation provides geographic and

6.0

flight freedom. (Air Asia India)

reduce queue and hustle

-1.0

World Airline Award 2011)

(Malindo Airlines)

World best low cost airline (Skytrax

5.0

Internet service allow-online booking

for domestic and international flight.

-4.0

4.0

Utusan refused to advertised ads

AirAsia faced fined issue

1.0
2.0

SPACE MATRIX

FP

6
5

x-Axis =
1.17
y-Axis =
-0.67
CP

-7

-6

-5

4
3
2
1
-4

-3

-2

-1 0
-1

-2

COMPETITIVE STRATEGY

-3
-4
-5
-6
-7

IP

SP

Market
Penetration
Market
Development
Product
Development

RECOMMENDATION
Improve local responsiveness
- Flight and routes ( avoiding flight delayed)
Improve on advertisement
- Guerilla marketing and promotion
Giving extra luggage allowance
- High utilization of aircraft
- Give convenience to passengers
Expand business sponsorship
- Next summer Olympic 2016( Rio de
Janeiro,Brazil): to increase the income, expose
and
maintain the brand in
future.