Malaysia Airlines Final 2
Strategic Market Management MKT30060
03.11.2014
Amaia Olaizola 14200635 __________________________________________
Jone Glez. de Galdeano
14200638 __________________________________________
Katrine Oseberg 14201161 __________________________________________
Executive Summary
This report is highlighting the situation in the airline company before and after the two accidents, how it affected them financially and also how it hurt their brand reputation.
Malaysia Airlines has in the past five years lost millions of dollars and was forced to make some drastic cuts. But in 2012 the situation improved because they received the prize of one of the leading airlines’ in the world. You can say that this is a company with a lot of ups and downs.
The analysis starts with some background information and also a summary of their performance of the last five years. And we are also analysing their key strategic challenges and their biggest competitors. While the internal analysis addresses their financial performance, comparing financial key data before and after the accidents, the external analysis addresses their strengths, weaknesses, opportunities and strengths in a SWOT- analysis.
The report concludes with strategies that we think will help Malaysia Airlines out of this crisis and will help them be profitable. In the end we have a forecast, trying to predict what’s going to happen with the company in the next years.
Table of Contents
1. Introduction 4
1 .1 Company overview 4
1.2 Performance summary for the last 5 years 4
1.3 Key strategic challenges 5
2. External Analysis 6
2.1 Market Size 6
2.2 Strength 6
2.3 Weaknesses 6
2.4 Opportunities 7
2.5 Threats 7
3. Competitor Analysis 8
4. Internal Analysis 10
4. Internal Analysis Financial performance of Malaysia Airlines 10
4.1 Financial highlights 10
4.2 Ratio Analysis 10
4.3 Results and comments 11
5. Brand Positioning and Segmentation 12
5.1 Brand positioning 12
5.2 Segmentation
03.11.2014
Amaia Olaizola 14200635 __________________________________________
Jone Glez. de Galdeano
14200638 __________________________________________
Katrine Oseberg 14201161 __________________________________________
Executive Summary
This report is highlighting the situation in the airline company before and after the two accidents, how it affected them financially and also how it hurt their brand reputation.
Malaysia Airlines has in the past five years lost millions of dollars and was forced to make some drastic cuts. But in 2012 the situation improved because they received the prize of one of the leading airlines’ in the world. You can say that this is a company with a lot of ups and downs.
The analysis starts with some background information and also a summary of their performance of the last five years. And we are also analysing their key strategic challenges and their biggest competitors. While the internal analysis addresses their financial performance, comparing financial key data before and after the accidents, the external analysis addresses their strengths, weaknesses, opportunities and strengths in a SWOT- analysis.
The report concludes with strategies that we think will help Malaysia Airlines out of this crisis and will help them be profitable. In the end we have a forecast, trying to predict what’s going to happen with the company in the next years.
Table of Contents
1. Introduction 4
1 .1 Company overview 4
1.2 Performance summary for the last 5 years 4
1.3 Key strategic challenges 5
2. External Analysis 6
2.1 Market Size 6
2.2 Strength 6
2.3 Weaknesses 6
2.4 Opportunities 7
2.5 Threats 7
3. Competitor Analysis 8
4. Internal Analysis 10
4. Internal Analysis Financial performance of Malaysia Airlines 10
4.1 Financial highlights 10
4.2 Ratio Analysis 10
4.3 Results and comments 11
5. Brand Positioning and Segmentation 12
5.1 Brand positioning 12
5.2 Segmentation
References: (Accessed Oct 20th 2014) Malaysia Airlines official website (Online) available at: http://www.malaysiaairlines.com/my/en/corporate-info/awards.html (Accessed Oct 20th 2014) (Accessed Oct 20th 2014) Association Asia Pacific Airlines, (2013 p.5 and 9) Hong Kong Annual Report (Online) Available at: http://www.businessweek.com/articles/2014-03-24/malaysia-airlines-was-in-trouble-long-before-flight-370 (Accessed Oct 20th 2014) (Accessed Oct 24th 2014) CAPA Centre of Aviation (Online) Available at: http://centreforaviation.com/analysis/malaysia-airlines-2q-loss-widens-restructuring-is-imminent-but-outlook-remains-bleak-184380 (Accessed Oct 24th 2014) (Accessed Oct 25th 2014) Malaysia Airline System Berhad, (2012 p http://ir.chartnexus.com/mas/report.php (Accessed Oct 22th 2014) Malaysia Airline System Berhad, (2013 p. 58-61) Annual report (Online) Available at: http://ir.chartnexus.com/mas/report.php (Accessed Oct 22th 2014) Malaysia Airline System Berhad (2014) Quarterly report for the first quarter (Online) Available at: http://ir.chartnexus.com/mas/doc/qr/Bursa Q1 2014 -final.pdf (Accessed Oct 22th 2014) Malaysia Airline System Berhad (2014) Quarterly report for the second quarter (Online) Available at: http://ir.chartnexus.com/mas/doc/qr/q2_2014.pdf (Accessed Oct 22th 2014) Malaysia Airline System Berhad (2014) Media release for second quarter (Online) Available at: http://ir.chartnexus.com/mas/doc/media/q2_2014.pdf (Accessed Oct 22th 2014) (Accessed Oct 24th 2014) Malaysia Airlines story (online) Available at: http://www.malaysiaairlines.com/my/en/corporate-info/our_story/about-us.html (Accessed Oct 21th 2014) (Accessed Oct 22th 2014) REFLECTIVE PAGE