Air Asia Berhad Case Study

 I, Surentheran Pillay a/l S.P.Sivalinggam confirm that this submission is my own work and I accept all responsibility for any copyright infringement that may occur as a result of this submission.

Executive Summary

        This report will study Air Asia Berhad (AA) competitive position in airline industry particularly low cost carrier (LCC). AA is Malaysian owned company which operates on both domestic and international markets. The study is analyzed through Porter 5 Forces and PESTEL for external analysis. In micro-environment analysis, it obvious that threat of new entrants and threats of substitute are relatively low due to high cost and high barrier.  

        AA internal analysis demonstrates the resources and capabilities also identified globally-known brand name, LCC leader and group of management as their competitive advantages. For a detail internal analysis, SWOT Analysis, TOWS Matrix and Value Chain Analysis was used. It provides a platform for enhancing and overcoming AA strengths, opportunities, weakness and threats accordingly.

        BCG and Ansoff Matrix were used to further analyze the organization’s strategic direction.   To add on, SAFS Framework were also used to critically evaluate the organization’s strategic direction. This framework helps to explore strategic options and provide corporate growth opportunity.

        This report lastly is followed by recommendation that helps AA overcome its strategic issues.

Table of Contents

1. Introduction ………………………………………………        4                
2. Analysis of Critical Evaluation

1. External Analysis        ………………………….        5
2. Macro-Environmental Analysis        ………….        5

1. PESTEL        ………………………….        6

1. Micro-Environmental Analysis

1. PORTER’S 5 FORCES        ………….        9

1. Internal Analysis

1. SWOT Analysis        ………………….        13
2. TOWS Matrix                ………………….        14
3. Value Chain Analysis         ………….        17                

1. Analysis of the Organization Strategic Direction

1. Ansoff Matrix        ………………………………….        19
2. BCG Matrix        ………………………………….        22

1. Critical Evaluation of the Organisation’s Strategic Direction

1. SAFS Framework        ………………………….        24

1. Conclusion        ………………………………………….        26
2. Recommendation        …………………………………..        27
3. References        …………………………………………..        29
4. Appendices        …………………………………………..        33

1. Introduction

Air Asia (AA), Malaysia’s proudest low-cost carrier operates domestic and international flights to 400 destinations covering almost 22 countries from their main hub at KLIA2 (LCCT). Their AIRASIA X (AAX) only does long haul destination (AirAsiaX 2014).