Malaysian Airlines Porter's 5 Forces Analysis
Introduction
Background of Malaysian Airline:
Malaysia Airline System (MAS) Malaysian Airlines is a government owned flag carrier of Malaysia. It operates from its home base, Kuala Lumpur International Airport and with a secondary hub at Kuching. Other than the airline, the group also includes aircraft maintenance, repair and overhaul and aircraft handling.
The vision of the company is to become a preferred premium carrier, well positioned in the Asian aviation marketplace. Even though Malaysia is relatively smaller in Asian arena, the airline will try to harness the country’s geo economic centrality in ASEAN, and emphasize on their own natural way of cost competitiveness as a hub and try to enter into alliance and partnership to ‘punch above
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Understanding each of these market forces allows businesses to make wise decisions which can maximize return in any industry …show more content…
For domestic airlines, they can have challenging for developing their system, but there are many international airlines are threatening the development of Malaysia Airline. In particular, Air France is the airline company is expanding routes to South East Asia and are highly service and quality, as well as providing exclusive personalized service at the airport to help passengers comfortable while fly processing. (asie_2015.01-en.pdf).
Barging Power of Suppliers (High)
Fuel prices are ever increasing affecting the cost so the supplier power is high. Indicates that Fuel and Oil cost is the largest cost in Malaysia Airlines and it can have a strong effect on the profit of the company (Figure 1). (SSRN-id1898601.pdf) Figure 1: Malaysia Airline Cost, 2nd QTR 2008
The Asian airline industry is very optimistic about the growth potential of the Asian aviation industry so is placing huge aircraft orders thereby increasing the bargaining power of the suppliers
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