Airasia Swot Analysis
STRENGTHS WEAKNESSES
Article taken from WSJ dated Wednesday May 02, 2012 “AirAsia Flies Better Without Flag Carrier” • largest budget carrier (Economy of scale)
• Very strong management team
• Very good in strategy formulation and execution (Economy of scale)
• Strong brand equity - AirAsia’s brand name is well established in Asia Pacific (Learning Curve)
• Cost advantage (Economy of scale)
• Market share leadership- AirAsia is the low cost leader in Asia (Economy of scale)
• International alliances (Linkages)
• Very flexible and high committed workforce (Learning Curve)
• Excellent utilization of IT (Capacity Utilization, Learning Curve)
• Single type fleet minimize maintenance fee and easy for pilot dispatch (Capacity Utilization) • Air Asia does not have its own maintenance, repair and overhaul (MRO) facility ((Capacity Utilization, Company Policy)
• AirAsia receives a lot complaints from customers on their service (Economy of scale, Learning Curve)
• Low load factors
• Service resource is limited by lower costs
• Aircraft financing costs surging(Economy of scale)
• Government interference and regulation on airport deals and passenger compensation
• Heavy reliance on outsourcing
OPPORTUNITIES • High demand for low cost and differentiated service
• International expansion (Economies of Scale)
• High demand for low cost and differentiated service EXPLOIT
• AirAsia has a established reputation
• Online Market (Economy of Scale)
• Customer Loyalty
• Cost management - Financial markets (raise money through Fuel Hedging)
• Ongoing industry consolidation has opened up prospects for new routes and airport deals
• Product and services expansion (Capacity Utilization)
• ASEAN “Open Skies” allows unlimited flights among ASEAN’s regional air carriers (Linkages)
• Long haul flight is a trial to get undeveloped market share UNDECIDED
• Cost saving initiatives (Economy of scale)
• New services (Economy of scale)
• Additional Merger and
Article taken from WSJ dated Wednesday May 02, 2012 “AirAsia Flies Better Without Flag Carrier” • largest budget carrier (Economy of scale)
• Very strong management team
• Very good in strategy formulation and execution (Economy of scale)
• Strong brand equity - AirAsia’s brand name is well established in Asia Pacific (Learning Curve)
• Cost advantage (Economy of scale)
• Market share leadership- AirAsia is the low cost leader in Asia (Economy of scale)
• International alliances (Linkages)
• Very flexible and high committed workforce (Learning Curve)
• Excellent utilization of IT (Capacity Utilization, Learning Curve)
• Single type fleet minimize maintenance fee and easy for pilot dispatch (Capacity Utilization) • Air Asia does not have its own maintenance, repair and overhaul (MRO) facility ((Capacity Utilization, Company Policy)
• AirAsia receives a lot complaints from customers on their service (Economy of scale, Learning Curve)
• Low load factors
• Service resource is limited by lower costs
• Aircraft financing costs surging(Economy of scale)
• Government interference and regulation on airport deals and passenger compensation
• Heavy reliance on outsourcing
OPPORTUNITIES • High demand for low cost and differentiated service
• International expansion (Economies of Scale)
• High demand for low cost and differentiated service EXPLOIT
• AirAsia has a established reputation
• Online Market (Economy of Scale)
• Customer Loyalty
• Cost management - Financial markets (raise money through Fuel Hedging)
• Ongoing industry consolidation has opened up prospects for new routes and airport deals
• Product and services expansion (Capacity Utilization)
• ASEAN “Open Skies” allows unlimited flights among ASEAN’s regional air carriers (Linkages)
• Long haul flight is a trial to get undeveloped market share UNDECIDED
• Cost saving initiatives (Economy of scale)
• New services (Economy of scale)
• Additional Merger and