Swot Analysis Of Malaysian Airlines

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

For domestic airlines, they cannot compete directly with Malaysia Airline, but there are a few 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.

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 again

The civil aircraft industry is monopolized by two major aircrafts

With the advancement in technology for many things travelling personally is not important as with the help of web conferencing and services like online counseling the need for travel is reduced.

The customer can switch to modes which are reasonable in terms of fare as air travel to some extend is expensive as compared to other modes of travel. The factor which alone reduces the attractiveness of the substitutes in the minds of the travellers is the fastness and reliability of air travel.

Barging Power of Buyers

There is a very low product differentiation so to succeed providing either services at very low cost or give a five star experience so that customer pays the price for the superior services offered. In addition, the availability of information is really high and with the emergence of travel portals who guarantee that they can search for the lowest fares out of all the options available and book it for the client with just a click which even provides the ease of purchase, the bargaining power of the buyer is increasing

Frequent flyer programme and online duty free purchase services can create customer loyalty and reduce the threat of customer switching over to other airlines to some extent. Low buyer concentration can also reduce the power of buyers.

Competitive Rivalry (High