AirAsia X losses have been disappointing AirAsia X has been unprofitable three out of the last four yearsand Most recently it has been unprofitable in three consecutive quarters including a MYR million USD 40 million net loss in 2Q, which was over three times the loss from 2Q Without the restructuring it is unlikely AirAsia X would have been able to complete an initial public offering in Jul
Swot matrix of airasia Target Figure By providing quality services at a competitive price, AirAsia manages to develop and sustain its competitive advantage in the market. Many low cost airlines have penetrated in the market giving direct competition to AirAsia.
|How to make the VRIO Analysis?||They also offer newly released movies on any flight that is longer than two hours. Every month they update the movie options.|
The most significant objective of AirAsia is to gain higher cost advantage as compared to its rivals.
This is managed by the company by searching for cost reduction areas continuously including its value chain. AirAsia gain cost advantage in this category by utilizing just one kind of aircraft. This act results in reducing the maintenance cost along with administrative cost and inventory cost.
These costs are considered to be the major expenses within an airline industry. Operational and Outbound Logistics: AirAsia benefits cost advantage by eliminating extra value services such as provision of meals and entertainment on flight.
The company further assigns no seat to the passengers. They have made the process simple for their customers and staff hence resulting in technical efficiency.
The two most important cost advantage over operations possessed by AirAsia is the high utilization of their planes and turnaround time as quick as twenty five minutes.
The most significant feature of AirAsia is the low cost but creative advertisement they produce. This advantage cuts down major costs of marketing for the company.
This feature helps them to stay aware of their weaknesses and satisfy customers in the best possible way. AirAsia is recognized worldwide for its simplicity and transparency. AirAsia works towards embracing technology for business requirements as well as to maintain cost effective strategies.
The above mentioned sources of the cost advantage that AirAsia has over other airline companies are summarized in the flowchart below. These features of AirAsia enable it to compete successfully with its rivalry airlines and dominate the market.
When considering low cost carrier business model, cost management is the key that leads the company to leading position in the market. Capabilities Analysis Capabilities analysis takes place once the business plan and strategy are streamlined and in proper positioning. Applegate, Austin and Soulep.
They define the resources needed to execute strategy and define the cost model of an organization. Capabilities also defines the assets of a firm and the efficiency with those assets are used. Analysis of process and infrastructure: An example can be installation of kiosks by AirAsia to speed up the process of checking in.
The technological innovations by the company satisfy the customers and makes the company gain competitive advantage in the market. Evaluation of staff, customers and partners: With an aim to provide quality service to its passengers, AirAsia focuses more towards the training of its crew and staff.
A series of sessions are planned for the staff to enhance their skills to serve people better. The agenda of the training sessions include procedures for in flight services, aviation terminology, safety and security procedures, gaining knowledge of the product and many more.
Direct partners can be categorized to have strong ties with the company. These include hotels, resorts, travel agencies etc.The SWOT analysis concept is originated from SOFT analysis introduced by Albert Humphrey with original goal to study corporate planning.
SOFT is the acronyms for .
Air Asia SWOT. Strengths. Below are the Strengths, Weaknesses, Opportunities & Threats (SWOT) of Air Asia: 1. Strong Promoter 2. Well established LCC operating out of South East Asia. 3.
It has operations in over 25 countries and over international and national destinations. 4.
It has subsidiaries in Indonesia, Thai, Phillipines, Japan. SWOT Analysis of Coca-Cola Company mbalectures October 30, January 22, 20 Comments Coca-Cola is the world’s largest soft-drink company which manufactures and markets non-alcoholic beverage concentrates and syrups. SWOT analysis allows us to examine the current position of the company and the external environment.
In this assignment, we can know the strength, weakness, opportunity, and threats of Malaysia Airline. It can improve the efficiency of the service and AirAsia can save the cost for printing physical flight tickets.
as the TOWS matrix shows that AirAsia need to improve its technology systems by using the information technology conducive. AirAsia Summary AirAsia has made its true arrival when it was relaunch and reborn in as a new acquisition by Tune Air Sdn Bhd, with a stronger positioning alongside the well-known tagline Now Everyone Can Fly.