FHBM1114 MANAGEMENT SESSION 201901

(January 2019 Trimester) GROUP REPORT

ASSIGNMENT

Company Name : AIR ASIA

Tutorial Group : T3

Tutor Name : MS.NGO SIAU WOON

NAME STUDENT ID

CHOO SIAO YING 1806721

TAN WEI NEE 1806249

LEONG CHI MUN 1806090

WILLY FOO CE JIAN 1805610

FELICIA YAP YUEN CHEEN 1806266

LOO SU YU 1806964

TANG MUN CHOON 1806517

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 TABLE OF CONTENT

COMPONENTS NUMBER OF PAGES

BACKGROUND OF AIR ASIA 3-4

SWOT FACTORS OF AIR ASIA 4-6

GRAND STRATEGIES OF AIR ASIA 7-10

PORTER’S 5 COMPETITIVE FORCES OF AIR ASIA 10-14

PORTER’S 4 COMPETITIVE STRATEGIES OF AIR ASIA 14-16

CONCLUSION 16

REFERENCES AND APPENDICES 17-18

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Background of AirAsia

AirAsia established in 1993 with commenced operations from 18 November 1996. It was

established initially by DRB-Hicom, a government owned-conglomerate. In 2 December 2001,

the heavily-indebted airline was purchased by Tony Fernandes, former Time Warner Executive.

Tony was inspired by the Low-Cost Carrier business model of Southern Airlines and proposed to

start a Low-Cost Carrier but the government refused to issue a new license and requested Tony

to buy an existing airline. Hence, Tune Air set up by Tony and his investors bought AirAsia for a

token sum of RM1. Before 2001, AirAsia failed to attract enough passengers from Malaysia

Airline to establish its own stand in the market. The turning point for AirAsia was in 2001

subsequent to its purchase by Tony Fernandes. AirAsia’s first and main base is the Low-Cost

Carrier Terminal (LCCT) at Kuala Lumpur International Airport, while its secondary hubs are at

Kota Kinabalu International Airport, Senai International Airport and Penang International

Airport. Tony Fernandes enrolled low-cost airline experts to restructure the business model of

AirAsia. He invited Connor McCarthy, formerly the director of the group operation Ryanair to

join his executive team. The vision of the company is to be the largest low-cost airline in Asia

and serve the 4.4 Billion people who currently lack connectivity at low fares. The five mission of

this company are to be the best company to work for where employees are treated as part of a big

family, to create a globally recognized Asean brand, to attain the lowest cost so that everyone

can fly with AirAsia, to maintain the highest quality product, embracing technology to reduce

cost and enhance service levels. In the late 2001, AirAsia airline was relaunched in Malaysia as

trendy, no frills operation with three B737 aircraft as a low fare, low cost domestic airline.

AirAsia’s simple slogan “Now Everyone Can Fly” has won the heart of customers. AirAsia’s

profit for the second quarter (ending 31 December 2004) was reported RM 44.4 million, which is

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a 3.23% increase over the previous quarter (AirAsia, 2015). AirAsia’s business strategy has

established its low fare business model through implementation of the key strategy. The strategy

is safety. AirAsia is partnering with the world’s most renowned maintenance providers to

comply with the world operations to ensure passengers’ safety. To guarantee the safety of the

airplanes, the machines are taken care by GE Engine Service since July 2002 for 5 years. AirAsia

has also partnered with Volvo Aero to provide plane structure and machine spare parts for all

AirAsia planes.

SWOT Analysis of Air Asia

The first element of this analysis is about strength of this company. There are a few strengths of

this company which one of it is their excellent management team. This team has many intelligent

blends of strategies that proven by some of the United States and Europe low cost airlines

company. Those strategies include Ryan air’s operational strategy, which are no frills and

landing in the secondary airport, Southwest’s people strategy which also called employee comes

first strategy, Easy jet’s branding strategy which meant a link between other service providers

such as hotel and car rental. Besides, the second strength of Air Asia is they have a very strong

promoter and also media for advertising. Their company always have many promotions that can

attract customers interests and have many good marketing skills employees and technology of

advertising which can influence customers attractions and choice of purchase. Moreover, Air

Asia is also a well-established LCC operating out of 11 countries of South East Asia and it has

operations in 25 countries and 400 international and national destinations. The most famous

destination is Bali-Indonesia, Thailand-Bangkok, Korea-Seoul, Japan-Tokyo and Nagasaki and

Taiwan-Taipei.

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Weakness is the second element of this analysis. There are two weakness of Air Asia which is

the company do not have their own maintenance, repair and overhaul (MRO) facility, low

service quality. Air Asia does not have its own maintenance, repair and overhaul (MRO) facility.

Although it is a good strategy with the hub and few planes only need to maintain when Air Asia

getting their first journey which only in Malaysia. Nevertheless, with those few hubs that only

situated in Malaysia, Thailand and Indonesia with over 100 planes that owned by Air Asia

currently and another 100 planes which intended to be received in future next few years, the

company have to take proper actions of confirmation such as continuous of maintenance of

planes with maintaining the overall costs low. Therefore, Air Asia is less efficient in their

maintenance cost. This will lead to decrease their profit as they need to pay firm for the high

maintenance costs. So, this is a weakness that Air Asia do not have its own belonging of MRO

facility which cause many difficulties. Another weakness of Air Asia is low service quality. For

examples, many customers complain their flight delays, being charged for a lot of things and not

able to change flight or get a refund if customers could not make it. Some customers also

complain about their distance between seats are too crowd difficult walk into their seats.

Therefore, a lot of customers feel unhappy and uncomfortable with the poor service. Hence,

there are the weakness of Air Asia.

The third element of this SWOT analysis is Opportunities. There are three opportunities of this

company which is the “ASEAN OpenSkies” agreement that has been reached, bad news are take

place in Malaysia Airlines (MAS) and lower fares offer by AirAsia compare to their competitors.

Firstly, the “ASEAN OpenSkies” agreement that has been reached in December 2018 cause Air

Asia can remain competence and defeat the other airlines. However; this agreement can be seen

as more of an opportunity with the “first mover” advantage as well as its strengths in

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management, strategy formulation, strategy execution and strong brand. Next, bad news which is

tragedies MH 370 and MH 17 in 2014 occurred. This will cause many customers feel anxiety

and no confidence with their technical of Malaysia Airlines and decided to choose AirAsia.

Based on the report of Air Asia in 2014, it is obviously increased the amount of their customer

because many customers from MAS prefer more Air Asia as feel confidence with Air Asia

airlines technic skills. Thus, this news will help the company increase their profit and become the

leaders of this market. Another opportunity of this company is low fares offer compare with their

competitors which is Malaysia Airlines, Malindo Airlines, Firefly Airlines and so on. According

to the low-cost airlines ranking, Air Asia is the he best low-cost airline in the world for the ninth

consecutive year. This can make Air Asia have competitive advantages in the price ticket attract

many customers So, Air Asia airline become the first choose of the customers when travel to

other countries

The last element of this analysis is threat that facing by the company. There are also a few threat

that happening to Air Asia. First, some of the charges are beyond the control of airline operators

such as airport departure, security charges and landing charges. These charges are contradict to

the Air Asia’s intention to maintain their low cost strategy and becomes a threat towards Air

Asia. Additionally, the rising of fuel cost and labour cost caused Air Asia have high expenses

and it may cause either increase the price or reduce the fly route. Meanwhile, the employees of

Air Asia having a high demand of salary, high cost of training fees and staff welfare also threaten

them unable to maintain low cost strategy. Furthermore, Air Asia’s profit margin about 30% has

attracted many competitors. Most of them are providing full services airline and planning to

create low cost subsidiary to compete with Air Asia directly. For instance, Singapore airline has

created low cost carrier which is Tiger Airways.

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Grand Strategies of Air Asia

1. Growth strategy

*Growth strategy is a strategy that involves expansion.

Since 2013 AirAsia opened a second hub at Senai International Airport in Johor Bahru near

Singapore and launched its first international flight to Bangkok, AirAsia subsequently started its

Thai AirAsia affiliate and also began flights to Singapore as well as Indonesia. Besides, there

were fights to Macau started in June 2004, flights to mainland China which is Xiamen and

Manila in the Philippines in April 2005, fights to Vietnam and Cambodia followed in 2005 as

well as flights to Brunei and Myanmar in 2016. In August 2016, AirAsia took over Malaysia

Airlines’ Rural Air Service routes in Sabah and Sarawak in which operating under the Fly Asian

Xpress. At the end of 2006, Fernandes unveiled a five-year plan to further enhance AirAsia’s

presence in Asia. Under the plan, AirAsia proposed enhancing its route network by connecting

all of its existing destinations throughout the region and expanding further into Vietnam,

Indonesia, Southern China like Kunming, Xiamen as well as Shenzhen and India. As a result,

with increased frequency and the addition of new routes, AirAsia increased passenger volume to

13.9 million in its 2007 fiscal year. On 27 September 2008, AirAsia announced 106 new routes

to be added to its list of 60. By early 2013, AirAsia’s profit increased by 168% on a year-over-

year basic compared to the same period in 2012. For the quarter ending 31 December 2012, the

airlines’ net profit stood at RM350.65 million. Other than that, the AirAsia Group significantly

accelerated expansion in 2017 in which growing its fleet by 16%. The total figures of the group

which consists of six short haul low cost airlines, exceeded 200 aircrafts and 60 million annual

passengers in late 2017. AirAsia took delivery of 31 A320s in 2017, being 24 new aircraft and

seven second hand aircraft. So, AirAsia is now the world’s largest operator of the A320ceo and

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the second largest operator of the A320neo (after IndiGo). The expansion of the AirAsia Group

fleet by 28 to 30 aircraft in 2017 marked the fastest expansion since 2013. The AirAsia Group

fleet expanded by 36 aircraft in 2013, representing the most aircraft AirAsia has ever added in its

16-year history. From a traffic standpoint, AirAsia has grown consistently at a rapid rate even

during periods of slower fleet growth. For example, AirAsia Group passenger number grew 11%

and 12% in 2015 and 2016 respectively, despite virtually no fleet growth. The AirAsia Group

expects to surpass 300 aircrafts by the end of 2021 which should enable it to approach and

potentially reach 100 million annual passengers.

2. Stability strategy

*Stability strategy is a strategy that involves little or no significant change.

The Malaysian market, the group’s original and by far its most profitable market has been shaken

up in 2013 as rival low-cost carrier group Lion has launched Malindo Airline and as rival

Malaysia Airlines (MAS) has exited a restructuring phase by pursing aggressive expansion

aimed primarily at fighting off Malindo. While AirAsia’s Malaysian short-haul operation

continues to report industry-leading operating profit margins of about 20%, its yields have

dropped in recent months and the carrier’s profitability could eventually be impacted. Besides,

AirAsia’s short-haul operation in Thailand also reported a dropped in yields in 2013. Although

Thai AirAsia was still able to improve operating profits but with new competition around the

corner as Low Cost Carrier (LCCs) plan to launch in Thailand; Thus, the market conditions will

only become tougher. So, AirAsia had decided in 2014 to slow down fleet expansion in response

to challenging market conditions. Other than that, AirAsia also keep its mission and vision in

operation which is offering the lowest ticket prices so that everyone can fly with AirAsia as the

slogan “Now Everyone Can Fly”.

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3. Defensive strategy

*Defensive strategy also known as retrenchment strategy and it is a strategy that involves

reduction in the organization’s efforts.

AirAsia’s group CEO, Tony Fernandes has reaffirmed the company’s plan to deliver in the sale

of AAE Travel, a joint venture between AirAsia and Expedia Southeast Asia. In 2018, Fernandes

announced the plans to divest its stake in Expedia by the end of 2018. In this way, AirAsia will

continue to focus on core operations and dispose its non-core assets by adding the airline plans to

sell its food business, logistics and cargo operations. The first AirAsia divested its stake was in

2015 in which from 50% to 25% and increasing Expedia’s total ownership to 75%. Besides,

AirAsia Group has sold 25 existing aircraft to AS Air Lease Holdings 5T DAC, an entity

indirectly controlled by Castlelake LP, a US-based global private investment firm and an

experienced leader in aircraft ownership as well as servicing in a deal valued at US$768 million.

This is because as Fernandes said this transaction was part of its ongoing transformation into

something more than an airline. He also said that if the group wants to move towards becoming a

travel technology company, the disposal of these aircrafts will not only unlock significant value

but also bring the company closer to its goal of being a truly digital company. Moreover, AirAsia

also plans to phase out its foreign pilots as part of the carrier’s goal to employ an all-Malaysian

workforce as well as cut the costs. The exercise would happen gradually with the expiration of

the pilots’ respective contracts even though the airline has not set a date to achieve its objective

but estimates that it should materialize by 2018 or 2019. According to an airline spokesperson,

AirAsia now employs 700 pilots, 100 of whom are foreigners from 32 countries and all serve as

captains on the Airbus A320 fleet. AirAsia hopes to hire more Malaysians with frozen airline

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transport pilot (ATP) licenses to fill the vacancies of senior first officers promoted to captain

over the next couple of years.

Porter’s 5 Competitive Forces of AirAsia

Threats of New Entry

There is a high barrier entering airlines industry since it requires high capital to set up everything

such as purchase or lease air craft, set up office and hiring staff so that it can reduced the treat to

Air Asia. In addition, brand awareness is quite important in this industry. Hence, to enter this

industry not only required high capital but also have to take some time to create brand awareness.

Consumers always choose their trusted goods or services. Instead of creating brand awareness,

brand loyalty should be replaced. However, the government legislation is one of the barriers for

entering airlines industry. For example, MAS has been protected by Malaysia government on the

route to Sydney and Seoul Incheon. Therefore, Air Asia find itself very difficult to get a new

route from government. This is not only affecting the timeline set by Air Asia but also influences

on their profit. On the other hand, Computer Reservation System (CRS) is a system that allows

AirAsia to effectively by-pass the middlemen especially travel agents and deal directly with the

customer. It will eliminate directly towards sales commissions paid for travel agents. Customer

data is centralized and helps AirAsia to track bookings and schedule flight activities in response

to needs in real-time.

Bargaining Power of Supplier

When multiple suppliers are producing a commoditized product, the company will make its

purchase decision based mainly on price, which tends to lower costs. Size plays a factor here as

well. If the company is much larger than its suppliers, and purchases in large quantities, so that

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 the supplier will have very little power to negotiate. When the supplier bargaining power is

likely to be high, the buying industry often faces a high pressure on margins from their

suppliers. By implementing this package AirAsia is looking to successfully maintain process

integrity, reduce financial month-end closing processing times, and speed up reporting and data

retrieval processes. There are few suppliers in the market such as the aircraft supplier, the

companies are either Airbus or Boeing. Previously the company used Boeing models, which

they lease it and the company had since phased out most of the models and replace with Airbus.

If Air Asia is to switch to Boeing again, it will cause the cost more expensive because training

cost for employees to suit the aircraft features must be provided. From the analysis model, it is

possible to conclude that supplier power is high due to monopolization of the industry by

Boeing and Airbus. Although there are only two companies to purchase or lease airplanes from,

the global crisis has limited new entrants into this market and reduced upgrading of planes for

the immediate future. The recent surge in fuel prices in 2008 forced airlines to reduce costs

wherever possible in order to survive. Fortunately, AirAsia already had the lowest operating

costs of any airline in the world. However, this did not stop AirAsia looking into ways of

avoiding potential problems in the future. The need for more fuel-efficient airplanes is now an

integral part of reducing costs in the aviation industry.

Bargaining Power of Buyer

There are two types of buyer power. The first is related to the customer’s price sensitivity. If

each brand of a product is similar to all the others, then the buyer will base the purchase decision

mainly on price. This will increase the competitive rivalry, resulting in lower prices, and lower

profitability. The second type of buyer power relates to negotiating power. Larger buyers tend to

have more leverage with the firm, and can negotiate lower prices. When there are many small

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buyers of a product, all other things remaining equal, the company supplying the product will

have higher prices and higher margins. Conversely, if a company sells to a few large buyers,

those buyers will have significant leverage to negotiate better pricing. For example, holiday

packages that are provided from Air Asia. It makes the difference by providing holiday packages

like 3 days and 2 nights to Bali at RM 800 per pax includes flight ticket, accommodation and

travel guides. For consumers who do not want to follow the travel agencies and enjoys freedom,

they will look for Air Asia packages, but the customer’s portion of this type is small. Thus the

bargaining power of buyers is strong as the main thing they look for is to fly to destinations.

Most importantly, efficiency creates savings that are then passed on to consumers so that

affordable air travel can become a reality. Through AirAsia philosophy of ‘Now Everyone Can

Fly’, Air Asia has sparked a revolution in air travel with more and more people around the region

choosing AirAsia as their preferred choice of transport as their innovative services.

Threats of Substitute Product

There are about 59 low cost airlines competing in the industry. The airlines serve over one

hundred cities and islands across the sub-continental regions of South Asia, Southeast Asia and

Northeast Asia. Although some of the budget carriers only fly domestic routes within the country

of origin, while only a few operates international routes connecting nearby countries, customers

will always look for alternatives. Performance of other airlines are quite similar with Air Asia

given there is no obvious product differentiation. Performance of airlines normally consists of

the accuracy of limited time, aircraft performance and staff services. So far, Air Asia had

constantly reviewed its performance and improve its services. The prices of substitutes are about

the same with Air Asia. Some of the airlines offers cheaper price to achieve profitable passenger

loads. The price offered depends on the time gap between the booking date and flight date. The

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longer the date, the cheaper will be the price. If the tickets are purchased last minutes, the price

will be about the same with premium airlines like MAS and Singapore Airlines. Thus, in this

situation customers would switch to the premium airlines. There are some substitute product that

can replaced from Air Asia service such as bus transportation cause it is more convenient and

provide reasonable prices compared to Air Asia.

Rivalry Among Existing Competitor

There are approximately 59 low fares and no-frills airlines compete with Air Asia Among of

them are Tiger Airways, JAL Express, Jet Star Airways, Air Arabia and etc. Some of the airline

does not compete directly with Air Asia, but it competes indirectly in routes that Air Asia does

not fly. The airline industry incurred high fixed cost which consists of finance cost, hire purchase,

and staff costs. The airline companies have to gain more market share to cover the fixed costs. In

doing that, constant price reduction is done by them to compete with others. Thus, the rivalry is

strong. The nature of airline industry is that customer’s priority is to look at price and flight

schedule that suits them the best when buying air tickets. The main purpose of using the airline

services is to get to the destination intended. Customers can switch to other airline easily which

makes the industry so competitive. It is hard for an airline company to exit the industry. It is

because the cost is high in paying the loans, staff retrenchment and flight cancellation refunds.

Even making losses, the companies have to get running to cope with fixed costs. This makes the

industry very competitive. The main purpose of using airline services is to reach the destination.

Every airline provides similar services to customers. Though Air Asia provides other added

services like hotel booking, and tour packages, it is subject to the customer’s choice. An industry

with similar products offered is highly competitive. Other than that, there are few low-cost

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airlines such as Malindo Airlines that contain some economy or budget holiday package for

wider market.

Porter’s 4 Competitive Strategies of Air Asia

Michael Porter introduced Porter’s 4 competitive strategies to help organisations overcome the

five forces and attain competitive advantage. Relevant strategy is chosen base on the company’s

industry, customer characteristics and capabilities. However, cost is the competitive priority and

it determines market position in the LCC segment. Thus, the cost leadership strategy which

keeps the costs and price is applied and prioritized by AirAsia. Under cost leadership strategy,

the level of operation efficiency is important because it helps in achieving more cost advantages

than competitors by searching continuous areas for cost reduction along its value chain that leads

to economies of scale. Even though the competitive strategy of AirAsia is focused on cost

leadership, it targets specific markets such as price sensitive customers demanding short-haul

flights and sells products or services below the average industry prices in order to gain market

shares. Therefore, AirAsia’s competitive strategy could be identified as focused cost leadership.

AirAsia is able to adapt the low-cost airline model and adopted strategic actions to lessen their

costs relatively to rivals, at the same time controlling competitive levels of differentiation. As

with most low-cost airlines, single class -services where passengers seats were not allocated,

meals, entertainments and amenities such as pillows and blankets were not provided to the

passengers is operated by AirAsia. The AirAsia company implied the differentiation strategy by

having their own specially constructed airplanes to reduce the cleaning and maintenance

expenses, loading and unloading times and costs. This made the turnarounds between flights

quicker and thus improving the process efficiencies and having lower costs to achieve cost

advantage. Additionally, AirAsia has higher efficiency and utilization on their airplanes and

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staffs which made the overhead and fixed costs related with an airplane to be lower on a per

flight basis compared to other airlines. For instance, aircraft Boeing 737-300 have 16 more seats

than the standard configuration adopted by full-service competitors. Moreover, point-to-point

services that kept flights to no more than 4 hours in order to lessen the turnaround time are also

implied. The AirAsia employees are also used more productively than rivals as they are always

executing various roles. AirAsia is able to run their aircraft for an average of approximately 13

hours per day which is 2.5 hours more efficient than full-service airlines which only managed to

run their aircraft for an average of 10.5 hours per day on account of the point-to-point services.

Not to mention, AirAsia’s airplane also has lesser average turnaround time when compared to

full-service airlines. AirAsia successfully attained low fixed costs over successful negotiations

for low lease rates for its aircraft, low rates for long-term maintenance contracts and low airport

fees. AirAsia is able to lower its overheads and investments in equipment considerably even in

the absence of fringe service. Correspondingly, a decrease of more than 60% of AirAsia’s

contractual lease charges per airplane occurred from 2001 to 2004. The airplane maintenance

costs were stated to be lesser than other competitors, giving AirAsia a competitive advantage.

Besides, AirAsia took advantage of the presence of e-commerce, an uncomplicated way to

present information. AirAsia has taken advantage of this approach to achieve lower cost of

operations as cost related to web is extremely low in comparison to other methods such as

advertisement on television or having a global star to advertise the company. In conclusion,

AirAsia managed to achieve a successful low-cost structure which charge lower prices to attain

high passenger loads, market share and profitability by waiving the provision of costly in-flight

services, flying standard fleet and minimizing the labour, facilities and overhead costs. Aware of

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the big market and opportunities in Asia, there will be threats by competitors and the challenge

for AirAsia will be reducing the costs effectively and make it hard for competitors to imitate.

Conclusion

In conclusion, the competition among airline industries is very tough. Each of the Airline

Company in the world trying to conduct some strategies to compete with their competitors.

However, AirAsia has been one of the most successful and fastest growing airline companies in

Asia with more than 10 shipping centres around Asia. For AirAsia to remain their successful of

their brand image, their strategies and management should be maintained and also enhance it at a

same time. Besides maintan their management strategies and low-cost idea, it also has to tackle

the problems of their weaknesses such as their services and their maintenances, repair and

overhaul (MRO) facilities. Moreover, AirAsia needs you come out with new strategy that can

make competitive position that AirAsia performs different activities from rivals or performing

similar activities in different ways to achieve their business magnificently. AirAsia should also

use Porter’s five competitive forces to help them remain as a strong airlines company in this

industry. The current trend Porter’s competitive strategy is also known as cost-leadership,

AirAsia should maintain their strategy so that they are able to compete with another company.

Thus, with this overall achievement, AirAsia may reach a higher level besides aiming for well-

known airlines in Asia to well-known airlines internationally.

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References and Appendices

1.https://www.ukessays.com/essays/management/swot-analysis-for-air-asia-strengths-

management-essay.php

2.http://www.academia.edu/5467726/SWOT_Analysis_for_Air_Asia

3.https://www.thestar.com.my/business/business-news/2010/10/22/the-battle-between-airasia-

and-tiger-airways/

4.https://www.routesonline.com/news/29/breaking-news/269090/world-routes-interview-airasia-

x-eyes-lcc-partnership-to-support-european-return/

5.https://www.ukessays.com/essays/aviation/leading-low-cost-airlines.php

6.https://centreforaviation.com/analysis/reports/airasia-group-2017-fleet-analysis-fleet-reaches-

200-aircraft-expansion-reaccelerates-392568

7.https://www.marketing-interactive.com/airasia-reaffirms-plan-to-divest-25-stake-in-expedia-

grows-focus-in-digital/

8.https://www.nst.com.my/business/2018/12/443658/airasia-sells-25-aircraft-us-private-

investment-firm-us768mil

9.https://thepointsguy.com/2016/03/5-things-to-know-before-flying-low-cost-carriers-in-asia/

10.https://airasiainformationsystem.weebly.com/company-background.html

11.https://airasiainformationsystem.weebly.com/company-background.html

12.https://www.coursehero.com/file/8221967/Company-Analysis-and-Background-of-AirAsia/

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13.https://itsaboutmymot.wordpress.com/2009/08/31/the-airasia-company-strategic-

management--how-airasia-can-be-a-leader-in-the-lowest-cost-carrier-in-the-airplane-industry/

14.https://www.freeonlineresearchpapers.com/competetive-porter-five-forces

15.https://www.academia.edu/1508051/AirAsia_The_World_s_Lowest_Cost_Airline

16.https://www.ukessays.com/essays/management/airasia-berhad.php

17. https://business.knoji.com/strategic-actions-adopted-by-airasia/

Figure 1.1 Slogan of AirAsia

Figure 1.2 SWOT Analysis of Air Asia

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 Marking Scheme for Group Report Assignment (January 2019 Trimester)

COMPONENTS MARKS Deserved

Marks
1. Introduction

Company background 10

2. Planning and Strategic Management

• Analyze the company SWOT factors 20

• Analyze the company grand strategy 10
(strategies)
• Assess Porter’s 5 competitive forces 20
for the company
20
• Assess Porter’s 4 competitive
strategies used by the company

3. Conclusion
Assess the overall achievement of the
company. (How the planning and 5
strategic management processes help
the company to reach its current
achievement levels, etc)

4. References and Appendices 5

5. Grammar/ Presentation of assignment / 10

Language/ Editing/ Formatting

TOTAL 100

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