Air Asia Strategic Analysis - Importance of Strategic Analysis

Running head: AIR ASIA STRATEGIC ANALYSIS
AIR ASIA STRATEGIC ANALYSIS
Name of the Student
Name of the University
Author Note

1AIR ASIA STRATEGIC ANALYSIS
Executive Summary
The primary aim of the given report is to throw light on the importance of strategic analysis of
the chosen company named Air Asia. Air Asia is a leading public company in Malaysia and has
one of the most popular Low Cost carrier Models. The report lays down the strategic analysis
and other competitive factors using the tools like PEST Analysis, SWOT Analysis and Michael
porters five forces tool. After the analysis was done using the given set of tools, the results were
analyzed which was then followed by a summary of the report. Certain recommendations were
also provided.

2AIR ASIA STRATEGIC ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
Company Background.................................................................................................................3
Reason for choosing the company...............................................................................................3
Key issues: Strategic Analysis – Market and Competitors Analysis...............................................4
PEST analysis..............................................................................................................................4
SWOT Analysis...........................................................................................................................7
Michael Porter’s five forces.........................................................................................................9
Conclusions & Recommendations.................................................................................................11
Recommendations......................................................................................................................12
References......................................................................................................................................13

3AIR ASIA STRATEGIC ANALYSIS
Introduction
Strategic Analysis is considered to be a relevant part of any organization and any firm
which is involved in the dynamic business environment will be required to ensure that they are
able to take essential measures so as to see to it that they are successfully able to achieve a
competitive edge and win over its competitors at large (Rothaermel, 2015). Hence, the primary
objective of the report is highlight the key issues being faced by the chosen public company, Air
Asia and use the tool of environmental analysis to understand the manner in which these market
and competitive forces will have an impact on the operations of the firm. The strategic tools like
SWOT, PEST and Michael Porter`s Five forces will be used for the same. Certain
recommendations will also be provided based on the same.
Company Background
The Air Asia Berhad which is registered under the stock market of Malaysia as MYZ:
5099 is a low cost airline company with its headquarters in Kuala Lumpur in Malaysia. The
airline is the largest airline as present in Malaysia with respect to the destinations and the fleet
size. Air Asia has established itself well with respect to the globe`s low cost airline with a unit
cost of US$0.023 per available seat kilometer (Airasia.com., 2018). The airline has a turnaround
time of 25 minutes and has a good crew productivity level which has often been praised. The
Airline has been consistently winning the award for the world`s best low cost carrier for the
international travels and the last award which it won was in the year 2017.
Reason for choosing the company
The given company has been chosen for the purpose of analysis because it is one of the
most popular companies around the globe. Moreover, the firm, is one of the largest Malaysian