CORPORATE DIPLOMA IN AIRPORT MANAGEMENT
STRATEGIC BUSINESS DEVELOPMENT
INDIVIDUAL ASSIGNMENT
Submitted to : Prof. Dr. Zaini Abdullah
-------------------------------------------------
NAME: ZAINUDDIN ABU NASIR
I/C NO: 630617-02-5109
Question
Choose a business story from the current business press that involves a firm or an industry in strategic change. Give an Executive Summary of the story, in 500-600 words, bringing out the significance dimension from a resource-based view or a Porter 5-forces view. The body of the assignment is to be given to an original analysis, not mere summary of events. Attach the article to the assignment.
Answer
The article “ Air Asia aims high” and “Stiffer Competition with Malindo Flying” both was selected from Starbiz – STAR newspaper dated 17 Dec 2012 and 7 January 2013 are related to the paper.
This paper shall analyze the issues according to the Porter’s Five analysis which is derived into several categories such as threat of new entrance, threat of new substitutes, power of suppliers, power of buyers and rivalry amongst other carriers. [Please refer to Appendix - Porter’s Five Forces of Competitive Position]. Presenter wish to look into Air Asia airlines case for the paper discussion and shared how they survived in the low cost carrier mainstream beginning from their day as a new entrant in 1996 and successfully carved their brand name internationally.
Introduction
There is not much competition in the airlines industry in Malaysia as the most dominant is Malaysia Airlines which is the legacy carrier and Air Asia which is the low cost carrier. Both airlines operates in a different model of business but in the same aviation sector.
Air Asia Berhad is a Malaysian-based low-cost airline. Air Asia is Asia 's largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. Air Asia group operates scheduled domestic and international flights to over 400 destinations
References: 1. http://en.wikipedia.org 2. www.air asia.com 3. Starbiz articles 4. Blue Ocean Strategy :- Author, W.Chan Kim and Renee Mauborgne Attachment A Attachment B Attachment C