Strategic Management - Analysis of Airasia Airlines and Tune Group

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student:
Name of the University:
Author’s Note

STRATEGIC MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Porter’s Five Model Analysis......................................................................................................2
Value Chain Analysis..................................................................................................................4
Ansoff Matrix..............................................................................................................................6
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

STRATEGIC MANAGEMENT
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Introduction
The focus of the paper is to appropriately examine the market environment of Airasia
Airlines and Tune Group ltd which is engaged in different business operations. The analysis
would be including Porter’s Five Force Analysis for the aviation industry so that the external
revenue which is generated is not affected in any manner. In addition to this, the analysis would
also be including value chain analysis for the company of Airasia Airlines and Tune Group. In
addition to this, the discussion would also be applying Ansoff Matrix for examining the external
capabilities of the business of Airasia Airlines and Tune Group (Airasia.com 2019). Further the
analysis also would be including recommendations for making improvements in the business
structure of the companies in future period.
Discussion
Porter’s Five Model Analysis
The porter’s five force is a useful technique which is applied for the purpose of analysing
the external environment in which the business operates. The airline industry is on a growth
phase due to rise in both international and domestic travel. The porter’s five force model
effectively identifies the factors which has a direct influence on the income which is produced by
the entity. The porter’s five forces model for South East Asian aviation industry is effectively
portrayed below:
 Supplier’s Power: The bargaining power of the supplier in the aviation industry is
immense which is mainly due to the three main inputs which is used by such airlines.
These inputs are fuel, aircraft, and labor and all these factors are susceptible to influences
of external environment (Hussain et al., 2013). The prices of fuel are always fluctuating