...AIRASIA X BHD Table of Contents 1.0 Company Profile 1 1.1 Introduction of Company 1 1.2 Vision 2 1.3 Mission 2 1.4 Value 2 1.5 Logo 3 1.6 Motto 3 1.7 Corporate Information 4 1.8 Organizational Structure 5 2.0 General Environment Analysis 9 2.1 Politic Factors 9 2.2 Economic Factors 10 2.3 Social Factors 10 2.4 Technology Factors 11 2.5 Legal Factors 11 2.6 Environmental Factors 12 3.0 Task Environment Factor 13 3.1 Porter Five Forces Analysis 13 3.1.1 The Threat of the Entry of New Competitors 13 3.1.2 The Threat of Substitute Products or Services 13 3.1.3 The Bargaining Power of Customers 14 3.1.4 The Bargaining Power of Suppliers 14 3.1.5 The Intensity of Competitive Rivalry 15 3.2 Level of Threats 15 4.0 S.W.O.T Analysis 16 5.0 TOWS Matrix 18 6.0 Ratio Analysis 20 6.1 Profitability Ratios 21 6.2 Margin Analysis 21 6.3 Asset Turnover 22 6.4 Credit Ratios 23 6.5 Long-Term Solvency 24 6.6 Growth over Prior Year 24 6.7 Conclusion from Ratio Analysis 25 7.0 Strategic Directions 26 7.1 Market Development 26 8.0 Additional Information 29 9.0 References 31 1.0 Company Profile 2.1 Introduction of Company Focusing on the low-cost, long-haul segment - AirAsia X was established in 2007 to provide high-frequency and point-to-point networks to the long-haul business. AirAsia X's cost efficiencies are derived from maintaining a simple aircraft fleet and a route...
Words: 6477 - Pages: 26
...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...
Words: 2789 - Pages: 12
...PACE - Professional & Continuing Education ON-LINE DISTANCE LEARNING MASTER IN BUSINESS ADMINISTRATION NUR EFIZA AB. RAZAK SUBJECT: Strategic Management SUBJECT CODE: MGT6303 Coursework Assignment 2 Due Date: 31st March 2015 Executive Summary In this second assignment, I have choose AirAsia and AirAsia X Group to further illustrate their strategic direction and development which is crucial for their survival. With a new travellers on the scene, it is inevitable that AirAsia will keep on growing. With hubs in KL, Bangkok, Jakarta, Sabah and Sarawak, AirAsia operates in a region with the world’s largest population, Asia. AirAsia’s strategy for growth is based on the potential demand from this region, which is huge indeed. Section (a) described the Ansoff Matrix and how it can be used by organisation. In another words, at the corporate level, the decision makers ought to address questions and issues related to the overall direction and scope of the business and where it should be going, as well as to look at the organisation’s competitiveness and where in the future it can continue to be stronger (MacMillan and Tampoe, 2000). Section (b) described the tactical level strategies that can further allow the grand strategies discussed in section (a) to be acted upon. Also the merits and limitations in each strategy. Answer for (a) The Ansoff Product – Market Growth Matrix is designed by a mathematician, H. Igor Ansoff in 1957. The matrix provides ways...
Words: 3247 - Pages: 13
...PEST and SWOT analysis of AirAsias international business operations 1.1Background 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 leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. 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. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. 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. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our 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. As AirAsia continuously strives to...
Words: 3109 - Pages: 13
...AirAsia : Indeed the Sky's the Limit! ASIAN JOURNAL OF MANAGEMENT CASES, 7(1), 2010: 7–31 SAGE PUBLICATIONS LOS ANGELES/LONDON/NEW DELHI/SINGAPORE/WASHINGTON DC DOI: 10.1177/097282011000700103 Lead Article AIRASIA: INDEED THE SKY’S THE LIMIT! Rizal Ahmad This article details the development of AirAsia Malaysia from 2005 to 2008 and builds on a prior case, ‘AirAsia: The Sky’s the Limit’. Within only four years, AirAsia managed to expand its operations into another ten countries. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. The article documents AirAsia’s marketing strategy and discusses its approach towards ‘market development’ and ‘product development’. The Blue Ocean Strategy concept is used as a tool to examine AirAsia’s strategic moves. Keywords: Low-cost airlines, budget airlines, marketing strategy, Asian entrepreneurship In the case study ‘AirAsia: The Sky’s the Limit’, the authors Ahmad and Neal (2006) discussed AirAsia’s comeback from a debt-laden scheduled airline (US$ 10.5 million in December 2001. The airline was bought by Tune Air for a token sum of one ringgit1 or 0.26 US cents) to a profitable low-cost or budget airline that managed to attract US$ 200 million in additional capital through its initial public offering in October 2004. AirAsia Berhad or Malaysia AirAsia (hereafter referred to as AirAsia) was credited for its efforts in enabling Malaysian...
Words: 11122 - Pages: 45
...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...
Words: 10894 - Pages: 44
...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...
Words: 3087 - Pages: 13
...AirAsia Berhad (284669-W) 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia Tel : (603) 78809318 Fax : (603) 78806318 E-mail : investorrelations@airasia.com Website : www.airasia.com CONTENTS AirAsia Berhad | annual report 2007 Our Dreams and Aspirations To be the largest low cost airline in Asia serving the 3 billion people who currently are underserved with poor connectivity and high fares. G G 2 4 7 8 12 20 22 24 26 30 32 34 36 40 42 43 44 46 47 48 52 53 54 56 60 62 66 68 72 76 81 82 83 152 156 157 G Our Dreams and Aspirations Corporate Profile Five Year Financial Highlights Share Performance Chairman’s Statement Group Chief Executive Officer’s Report AirAsia’s Strategy for Success Route Network Safety Product Development Go Holiday The Sky is Your Limit Champion of Low Fares AirAsia Roars Into Formula One One AirAsia Our People, Our Pride Investing In Our Future Major Milestones Serving You Better from Our 2nd LCC Terminal Awards & Accolades AirAsia Cares AirAsia Group Corporate Information Board of Directors Directors’ Profile Senior Management Senior Management Profile Managing Risk to Maximise Returns AirAsia Financial Snapshots Statement on Corporate Governance Audit Committee Report Statement on Internal Control Additional Compliance Information Financial Statement Analysis of Shareholdings List of Properties Held Notice of Annual General Meeting Proxy Form To be the best company to work for where employees...
Words: 22238 - Pages: 89
...1.0 Introduction "Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment." Strategic Management can also be defined as "the identification of the purpose of the organization and the plans and actions to achieve the purpose. It is that set of managerial decisions and actions that determine the long term performance of a business enterprise. It involves formulating and implementing strategies that will help in aligning the organization and its environment to achieve organizational goals."( Hambrick, D. C.; Chen, M.-J (2007).) Air Asia was established in 1993 and commenced operations on November 18, 1996.Initially established by the Government of Malaysia, state-run group DRB-Hicom. December 2, 2001, the former Time Warner manager Tony Fernandes private company Tune Air Sdn Bhd M & A heavily indebted airline, in order to 1 Ringgit acquire, together with the debt of 40 million ringgit. The turnaround in 2002, the creation of a number of new routes to the hub airport...
Words: 423 - Pages: 2
...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...
Words: 6417 - Pages: 26
...The Low Cost Airline: AirAsia A study of opportunities, challenges and critical success factors LGT 3007 Air Transport Logistics [pic] Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States, where it was pioneered in the 1970s by Southwest Airlines, the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel, online ticket sales, no international offices, no frequent flyer points, no free food and beverages, no inflight magazines, no club lounges, use of secondary city airports. Not all low cost airlines have these features, and not all airlines that have some of these features are low cost airlines. For example, Virgin Express is a low cost airline, but it still offers complimentary coffee and inflight magazine, and they are based at Brussels primary airport. Case Study—AirAsia Story of AirAsia Air Asia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia. Their vision is "Now Everyone Can Fly" and their mission is to provide 'Affordable Airfares' without...
Words: 3403 - Pages: 14
...date: 16 December 2015 1) AirAsia plan to be region’s biggest carrier Budget airline AirAsia Bhd has drawn up a six-year business plan that will see it carry 70 million passengers a year from 2014, which will make it Asia’s biggest carrier. The figure is 3.5 times higher than this year’s target of 20 million passengers. Group chief executive officer Datuk Tony Fernandes is optimistic of achieving the target, which will in turn make the low-cost carrier terminal at the KL International Airport the regional hub for budget travel, given the foundation laid out over the past six years. Factors going for the airline include its extensive regional network comprising 90 routes and its huge order of 175 Airbus A320s. “Six years going forward, I think things will look rosy and optimistic. This is mainly because we have worked to build the necessary foundation for the airline, namely in terms of network and the brand, and we have already acquired the aircraft to support our growth,” Fernandes told Business Times in an interview. “With the recent inclusion of Singapore in our network, we are basically connected to all points within the region; and what we are going to do now is to further develop each of these existing routes. We are indeed in a strong position now, stronger than we have ever been,” he said. From an unknown airline which started operations in 2001 with RM40 million debt inherited from its previous owner, DRB-HICOM, AirAsia has evolved into the region’s largest...
Words: 2983 - Pages: 12
...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 England, Tony’s family could not afford to pay for his trips back home during the holidays. In response, Tony would resort to “plane-spotting” to assuage his nostalgia of home while waiting longingly for someone to create an enterprise that will cut fares so that he can go home. With a vision heavily...
Words: 1504 - Pages: 7
...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;...
Words: 3915 - Pages: 16
...currently operates scheduled domestic and international flights to 80 destinations (including subsidiaries routes) across 25 countries and with over 400 daily flights covering Indonesia, Malaysia and Thailand and for international routes mostly from Kuala Lumpur to Australia, Bangladesh, Brunei, Cambodia, China, France, Iran, India, Japan, Laos, Myanmar, New Zealand, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, the United Kingdom and Vietnam. Air Asia’s main hub is at Kuala Lumpur International Airport as well as the head office of the company and its affiliated airlines, Thai Air Asia and Indonesia Air Asia, have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport.In this assignment,we will obtain information about AirAsia more. TASK A: DEFINITION OF MARKETING #1: * “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Source: Chartered Institute of Marketing (CIM) (http://www.studymode.com) DEFINITION OF MARKETING #2: * "Marketing is human activity directed at satisfying needs and wants through exchange process." Source: Philip Kotler (http://www.learnmarketing.net/marketing.html) COMPARISON All two definitions mention specifics of marketing and give an a concept about marketing today. One important thing,...
Words: 4252 - Pages: 18
