AIR ASIAZANARIAH ZAKR I 219875

AHMAD RUSYDAN MOHD S AUF I 220073

NURUL SHAF INAZ KHOL ID I 220199

VisionTo be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.

Mission •To be the best company to work for whereby employees are treated as part of a big family•Create a globally recognized ASEAN brand•To attain the lowest cost so that everyone can fly with Air Asia•Maintain the highest quality product, embracing technology to reduce cost and enhance service levels

MACRO ENCIRONMENT ANALYSIS Political

Opportunities-Deregulation and privatization present Airasia with opportunities for new routes.-The Malaysian Government has always supported the Malaysian airline industry.

Threats-Air Asia and its competitors can also be negatively affected by government decisions. -Civil conflicts and conflicts between regional governments can also affect Air Asia’s operations.

Economic

Opportunities-The economic situation in Malaysia is stable.

Threats-Fluctuating oil prices are a major challenge for airlines.

Social

Opportunities-Southeast Asia offers an important advantage to airlines because the region is composed of multiple ethnic groups that are able to speak several languages.-The rapid urbanization of Southeast Asia clearly helps airlines because it forces governments to develop important infrastructures and open new airports in order to facilitate the flux of people between countries.

Threats-The emerging middle class is growing more rapidly in countries like India and China.

Technology

Opportunities-By utilizing information technology, airlines have been able to reduce their operating costs.

Threats-By being highly dependent on technology, LCCs incur costs in ensuring that their systems operate smoothly and safely .

INDUSTRY ANALYSISSubstitute Products Customer easy to switching to other alternative transport or other airline.

Current RivalryHigh number of competitor.

Potential Entrants Customer loyalty is low again airline.

Bargaining Power of BuyersLow switching costs.

Bargaining Power of SuppliersHigh switching cost.

STRENGTHS

1. Strong management team

2. Low cost operations

3. Single type fleet minimize maintenance fee and easy for pilot dispatch

WEAKNESSES1. Service resource is limited by lower costs

2. Non-central location of secondary airports

OPPORTUNITIES1. Long haul flight is an trial to get undeveloped market share

2. Differentiation from traditional LCC model by adding

customer services or operation as full service airline with low fare

3.Ongoing industry consolidation has opened up prospects

for new routes and airport deals

THREATS

1. Full service airlines start cut costs to compete

2. Accident, terrorist attack, and disaster and affect

customer confidence

3. Aviation regulation and government policy

FIRM ANALYSIS