...Pest Analysis On Airasia 1.0 Introduction Purpose The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai Is this Essay helpful? Join OPPapers to read more and access more than 350,000 just like it! GET BETTER GRADES AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis 2.1 Political Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers...
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...COMPANY ANALYSIS : AIRASIA BERHAD TABLE OF CONTENTS Introduction : Background of the company----------------------------------------------------------------3 SWOT Analysis---------------------------------------------------------------------------------------------5 Lost Cost Carrier [LCC] Business Model----------------------------------------------------------------9 Current Issues / Problems---------------------------------------------------------------------------------13 Strategy to solve problems-------------------------------------------------------------------------------19 Conclusion-------------------------------------------------------------------------------------------------23 References-------------------------------------------------------------------------------------------------25 INTRODUCTION : BACKGROUND OF THE COMPANY AirAsia Berhad [Company No: 284669-W] [Incorporated in Malaysia with limited liability under the Companies Act, 1965] First Quarter Report Ended 30 September 2004. This is the first quarterly announcement made by AirAsia to the Bursa Malaysia Berhad since its listing on 22 November 2004. AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia...
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...Talent Solutions Case Study AirAsia Business Challenge Company Profile AirAsia, the leading and largest low-cost carrier in Asia, services an extensive network of 85 destinations. Within 10 years of operations, it has carried over 152 million guests and grown its fleet from just two aircraft to 106. The airline today is proud to be a truly ASEAN (Association of Southeast Asian Nations) airline with established operations based in Malaysia, Indonesia, Thailand, Philippines and Japan. This is complemented by AirAsia X, its low-cost long-haul affiliate carrier that currently flies to destinations in China, Australia, Taiwan, Nepal, Korea and Japan. AirAsia was named the World’s Best Low Cost Airline in the annual World Airline Survey by Skytrax for four consecutive years, from 2009 to 2012. Since 2001, AirAsia has swiftly risen to become one of the leading low-cost carriers in the world. In Malaysia where its headquarters and other key corporate functions are based, one of its key human resource challenges has been to stay ahead of the growth curve by sourcing for quality candidates to fill critical high-level positions within the company. AirAsia had been advertising on social media networks such as Facebook and Twitter as well as other job portals to fill non-executive or executive roles. However, while this approach worked well for positions such as Flight Attendants and Guest Service Assistants, it was less successful when it came to filling...
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...Introduction PEST Analysis is the Political, Economic, Social culture and Technology analysis that a company does to determine the overall business environment. A PEST analysis is a look at the external environment of a company or a business that plays an important role in managing and decision making of a company. It is crucial for a company to consider its environment before relating with the public or customers. The PEST analysis examines the impact of each of the factor on the company. Thus, political factor considers the impact of legislatives changes, stability of the economy and event that related with the government and politics that may affect the business. Influence of economy, such as interest rate, stability of economy, inflation levels and such helps the company make better decision on how to operate their company effectively. Besides that, the social drive is a crucial part on PEST analysis. Creating and developing a social culture takes time and effort and a new motive driven company such as Air Asia has to develop me method on how to connect with the society's lifestyle, demographics, and media. Technological point of PEST analysis relates with competing technology development with other competitors and effective information and communication between the market and the company. Political Analysis Political Analysis mainly states about the aviation acts and regulation which needed by aviation company such as Air Asia to operate their business. The political...
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...Question 1 Analyze the current situation facing MAS and AirAsia using the internal and external strategic environment analysis model. Discuss what aspects and why did their collaboration take place. Answer Background to AirAsia A ‘no-frills’ airline is defined as one “That uses charter and/or scheduled flights to offer bargain-basement fares. Budget airlines usually land at and take-off from secondary airports, do not provide in-flight meals or refreshments, and may not even offer numbered seat allocation. Their ticket prices are fixed and non-refundable in case of a cancellation or no-show”. AirAsia is one of the fastest growing airline companies in the world, with a reputation as a low-cost, ‘no frills’ airline. It was originally a government owned business; yet, due to heavy debt, it was bought by former Time Warner executive Tony Fernandes in 2001, and this is where the real story begins. Their vision, under the slogan "Now Everyone Can Fly", is “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”,(ii) and their mission is, under the banner of 'Affordable Airfares', “To attain the lowest cost so that everyone can fly with AirAsia,” without any compromise to Flight Safety Standards, as well as, creating a worldwide recognizable brand with a ‘family’ atmosphere within working conditions for employees. (iii) These statements clearly show AirAsia’s value. Cost advantages...
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...Tan Sri Dr Anthony Francis Fernandes Background and Qualification Tan Sri Anthony Francis Fernandes, the founder of Tune Air Sdn. Bhd, which introduced the first budget no-frills airline in Malaysia, AirAsia with the tagline of "Now everyone can fly". He was born in 30 April 1964 in Kuala Lumpur, Malaysia to a Goan (originally from Goa) father Dr. Stephen Edward Fernandes and a Kristang (known as "Portuguese-Eurasians") mother Ena Dorothy Fernandez. Dr Tony Fernandes was educated at The Alice Smith School in Kuala Lumpur before entering Epsom College. His Bachelor of Science in Accounting and Finance was earned from the London School of Economics in 1987. He also received an Honorary Doctorate of Business Innovation from Universiti Teknologi Malaysia (UTM) in March 2010. He was admitted as Associate Member of the Association of Chartered Certified Accountants (ACCA) in 1991 and became Fellow Member in 1996. He is currently a member of the Institute of Chartered Accountants in England and Wales (ICAEW). Dr Tony Fernandes has been served as an internal auditor, managing director, financial controller and even Southeast Asian regional vice-president for few companies before starting up Tune Air Sdn Bhd. Working Experience Virgin Communications London 1987 until 1989 – Served as an internal auditor and subsequently becoming financial controller for that organization. Warner Music Group Warner Music International London 1989 until 1992 - Served as Senior Financial Analyst...
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...Introduction: AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. AirAsia creates values through the following vision and mission. AirAsia’s vision is 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. Whereby, their mission is to create a globally recognized ASEAN brand, attain the lowest cost so that everyone can fly with AirAsia and maintain the highest quality product, embracing technology to reduce cost and enhance service levels. EXECUTIVE SUMMARY AIR ASIA Strategic management has played a key role in the success of many business organizations in the world including...
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...Executive summary This assignment is to compare the capital structure, and cost of capital between two same companies in Bursa Malaysia and their effect to market valuation and firm’s performance. It is also to indicate how the companies gearing levels and cost of capital affect the firm’s value and profitability ratios. The ratios being used are for comparing and investigating the relationships between two companies’ financial information. Besides, it indicates if higher gearing level and higher cost of capital affect the firm’s value and performances. This assignment was focused on AirAsia and Malaysia Airline.A company's capital structure refers to the relative proportions of equity (raising money by selling shares) and debt (raising money by borrowing) which the company uses to finance its activities. The uses of capital structure are important to distinguish between market value and book values. In general, financial economic prefer to use market value went measuring debt ratio because it reflect current value whether than historical values. Financial economist does belief that current market value reflects true intrinsic value. In the other hand the uses of book value is very popular because of volatility of stock market it is frequently claimed that the inherent volatility of the stock market makes market-debt ratios move around too much. A company's capital structure can have an enormous impact on its earnings per share, taxes, and interest payments, even though...
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...CONTENT PAGES 1.0 INTRODUCTION…………………………………………………………………2 About the product…………………………………………………….………….2 2.1 Company background…………………………….………………….....7 2.2 Business process and operation…………………..………………….9 2.3 Low cost carrier (lcc) business model……………….………………11 2.4.1 Business model……………………………………………...11 2.4 Competitive Advantages …………………………..…………………..12 2.5 Historical Performance………………………………..……………….13 2.0 ANALYTICAL SWOT ANALYSIS……………………………….……………..18 3.0 PRODUCT ANALYSIS…………………………………………….……………21 4.6 The product Life Cycle (PLC)………………………………....………21 4.0 STRATEGIS AND TACTICS………………………………………..………….24 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 6.7 Market Segmentation………………………………………..………….26 6.8 Target Market Profile……………………………………………………30 6.9 Positioning………………………………………………………….…….32 6.0 MARKETING STRATEGIES AND EVALUATION OF MARKET PROGRAM ELEMENTS………………………………………………………………………..33 Refferences…………………………………………………………………………………………………………….36 1.0 INTRODUCTION AND HISTORY a. Introduction of the product Name of the company: Air Asia Berhad ABOUT THE PRODUCT Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia’s largest low fare, no frills airlines. Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base...
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...days of the marketing concept when physical products represented a larger portion of the economy. Today, with marketing more integrated into organizations and with a wider variety of products/services and markets, is so astonishing and surprising that this concept is still very appropriate and relevant. In this article, I will discuss and analyze AirAsia Airline within the context of this marketing concept described above. Identifying the target market and highlighting some of the marketing mix employed to attract the chosen market Finally, I will discuss the threats to the long-term success of the airline with reference to the current marketing mix in order to overcome certain service shortcomings. ORGANIZATIONAL ANALYSIS Company Background AirAsia Malaysia is second national airline. It was the first successful low cost, ticket-less airline in the Southeast Asian region. On 8 December 2001, Tune Air Sdn Bhd officially acquired 99.25 per cent equity (51.68 million shares) in AirAsia from DRB-Hicom, one of Malaysia’s giant conglomerates. Tune Air Sdn Bhd is the holding company, while AirAsia remains as the operating company. 1 AirAsia currently operates over 100 point-to-point domestic and international flights from its hubs in Kuala Lumpur International Airport ( KLIA) and Senai Airport, Johor Bahru in Malaysia; Bangkok International Airport in Thailand;...
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...Background Anthony Francis Fernandes was born on the April 30th 1964 to a Goan father and a Kristang mother and raised in Kuala Lumpur. He graduated from the London School of Economics in 1987. He worked very briefly with Virgin Atlantic as an auditor, subsequently becoming the financial controller for Richard Branson's Virgin Records in London until 1989. Tony became the youngest managing director of Warner Music (Malaysia) Sdn Bhd and in 1992, became the Southeast Asian regional vice-president for Warner Music Group. When Time Warner Inc. announced its merger with America Online Inc. in 2001, Tony left to pursue his dream of starting a budget no-frills airline which AirAsia with the tagline “Now everyone can fly.” He also founded the Tune Group companies Tony Fernandes is a true visionary. For all the business that Tony was involved, he showed a clear picture into the future of these industries. Moreover, he exercised great judgment in decisions that change the situation, usually following at the most appropriate. When he was six years old, he announced that he will start an airline and his father who was a physician quoted to him "if you make past the doorman of Hilton Hotel, I will be happy". He did make past the doorman of Hilton and then did not stop there. Marketing is in his blood as his mother ran a successful direct-selling Tupperware business in Malaysia. Venturing into the AirAsia Business When he was studying in Epsom, a boarding school in southern...
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...Table of content 1.0 Introduction……………………………………………………………………..2 2.0 Favorite brand is Air Asia……………………………………………………….3 3.1 Favorite brand and the reasons brand makes great………………………4 3.0 Bad brand is Rayani Air…………………………………………………………6 4.2 The reason why the brand are bad……………………………………….7 4.0 The major competitor of the favorite brand…………………………………..8 4.1 Malaysia Airlines (MAS) the major competitor of Air Asia………….....9 4.2 Competing brands in term of strategy marketing……………………….10 4.3 Difference between Air Asia and Malaysia Airlines (MAS)……………11 5.0 Conclusion………………………………………………………………………13 6.0 Reference………………………………………………………………………..14 1.0 Introduction The aim of this individual assignment of subjects BPMM3113 Brand Management is to make a bit of criticism in connection with the preferred brand and the brand also not favored. This task is also to evaluate the performance of a popular brand of airline Air Asia and also the favored brand of Air Rayani. For the main competition for Air Asia is Malaysia Airlines (MAS). The airline industry is a big industry, a large and rapidly growing nowadays. In those years ago, air travel has increased by 6% a year and scheduled airlines carry more than 1 billion passengers in 2008. In addition, in this study, both the company and the challenges will be discussed in more detail in this report. It will be discussed further in this study are the weaknesses, advantages...
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...MALAYSIA AIRLINES SYSTEM AND AIRASIA AIRLINES COLLABORATION TAKES PLACE. TABLE OF CONTENTS QUESTIONS 1:- Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal From its inception, it has not been plain sailing for the planned share swap between two of the country's most bitter airline rivals — Malaysia Airlines (MAS) and AirAsia — given the many issues involved...
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...1.0 Introduction Purpose The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis 2.1 Political Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like Bangkok...
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...Content Contents Marketing Audit 2 External analysis 2 Macroenvironment 2 Microenvironment 5 Internal analysis 9 AirAsia Marketing Mix (4ps) 9 SWOT Analysis 11 Marketing Objectives 17 Marketing strategy 17 Action Programs 25 Financial Budgeting 26 Implementation Control 27 References 31 Marketing Audit External analysis * Macroenvironment Political Environment Government regulates Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval of...
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