Strategic Analysis Of Airasa's Business Strategy

Table of Contents

Executive Summary 2

1. Introduction 3

1.1 Brief Description of the Report 3

1.2 Current Situation 3

1.3 Company Background 4

1.3.1 AirAsia 4

1.3.2 Vision and Mission 4

2. Strategy and the Industry 4

2.1 Analysis and Evaluation of industry Strategy 4

2.2 Global Forces that Impact the Industry 5

2.3 Importance of an Effective Strategy 5

3. Environmental Analysis and the Strategy 6

3.1 Corporate Strategy 6

3.1.1 Evaluation of Current Strategies 7

3.2 Analysis of the Internal Environment 8

3.3 Analysis of the Resources and Capabilities 9

3.4 Analysis of the External Environment 10

3.5 Proposed Change Strategy 11

4. The Relevance of Strategy Models/Frameworks 11

4.1 Discussion and Application of the Models 11

In the LLC airline industry AirAsia should implement cost advantage factors in the business. Company should have a strategy to be more capable and flexible in reducing cost, especially overhead cost, that results in higher revenue.

Organization size in airline industry can be recognized by the number of passengers that travel using that airline. Likewise, it can be referred to the number of seats that an airline can provide using its fleet. Increasing the number of planes in the fleet can directly increase the supremacy of the company in a targeted market. When demand exists, increasing the number of planes can bring more revenue to the airline as it may decrease the overhead costs and increase the flexibility.

The nature of many types of services involves people to work in teams, often across functions, in order to bring seamless customer service. Effective teams enable communication and knowledge sharing among team members, thus enabling the members to understand and learn from each other. In view of the importance of teamwork in the delivery of service

If the Air Asia to be competitive as a low cost or budgeted fare airline, Air Asia should continue to grow its services by simulating new markets in a sustainable manner. They also need to build stronger brand image as it’s continue to loose.

Maintenance

Since, Air Asia do not have its own facility to maintain its aircraft has to take it other facility. It has being long to do maintenance work for its aircrafts every now and then which cause delay in flight too. So it’s important for them to have a facility which can directly control its practices to avoid any further delay.

3.2 Analysis of the Internal Environment

Problem faced by Air Asia Airline.

Loss of flight

Airbus A320 jet had gone missing on December 28 while it was traveling from Surbabaya in Indonesia to Singapore which has created loss of 162 passengers (West, 2015).

Delaying flights

Frequent delay has started happening and customers has started losing its focus from Air Asia to other carriers like Singapore subsidies Tiger Airways (Avathr, 2015).

Maintenance

Since, Air Asia do not have its own facility to maintain its aircraft has to take it other facility. It has being long to do maintenance work for its aircrafts every now and then which cause delay in flight