Swot Analysis for Airasia
TABLE OF CONTENTS
AIRASIA’S BACKGROUND......................................................................3 SWOT ANALYSIS FOR AIRASIA.............................................................3 * Strength * Weakness * Opportunities * Threats LIST OF REFERENCES...........................................................................6
AirAsia’s Background
AirAsia was previously owned by DRB-Hicom, a government-linked company. Its airline had not been able to take off and was eventually sold to Tune Air Sdn. Bhd in 2001 which are owned by Tony Fernandes and four entrepreneurs, for a token sum of RM1.00 together with an accumulated debt of RM40 million.
AirAsia was listed in the Kuala Lumpur bourse within three years of operation, on 22 November 2004, with one of the largest IPO offer of RM717.4 million.
Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing budget airline as their preferred choice of transport.
SWOT ANALYSIS FOR AIRASIA
STRENGTHS
* AirAsia has a strong management team and strong connections with the government and airline industry leaders.
This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials. For example, Shin Corp. (formerly owned by the family of former Thai Prime Minister – Mr. Thaksin Shinawatra) hold 50% stake in Thai AirAsia.
This has helped AirAsia to open up and capture a sizeable market in Thailand. On top of that, they have strong relationship with Airbus which they can get a better discount for aircraft purchases which is also more fuel efficient as compared to Boeing 737 planes that is being used by other airlines * The management team is also very good in strategy formulation and execution.
The strategy which they have formulated from the beginnings was taken from
AIRASIA’S BACKGROUND......................................................................3 SWOT ANALYSIS FOR AIRASIA.............................................................3 * Strength * Weakness * Opportunities * Threats LIST OF REFERENCES...........................................................................6
AirAsia’s Background
AirAsia was previously owned by DRB-Hicom, a government-linked company. Its airline had not been able to take off and was eventually sold to Tune Air Sdn. Bhd in 2001 which are owned by Tony Fernandes and four entrepreneurs, for a token sum of RM1.00 together with an accumulated debt of RM40 million.
AirAsia was listed in the Kuala Lumpur bourse within three years of operation, on 22 November 2004, with one of the largest IPO offer of RM717.4 million.
Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing budget airline as their preferred choice of transport.
SWOT ANALYSIS FOR AIRASIA
STRENGTHS
* AirAsia has a strong management team and strong connections with the government and airline industry leaders.
This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials. For example, Shin Corp. (formerly owned by the family of former Thai Prime Minister – Mr. Thaksin Shinawatra) hold 50% stake in Thai AirAsia.
This has helped AirAsia to open up and capture a sizeable market in Thailand. On top of that, they have strong relationship with Airbus which they can get a better discount for aircraft purchases which is also more fuel efficient as compared to Boeing 737 planes that is being used by other airlines * The management team is also very good in strategy formulation and execution.
The strategy which they have formulated from the beginnings was taken from
References: 2) Pultotak, D. (2004, July).beyong Alignment. Business and IT Sunchronization. Http://itsaboutmymot.worthless.com.com/2009/08/31/the-Arabia-company-strategic-management 3) KHOR Y L, RAMLI, AZEMAN & GERALD 4) Ryan. (2011, July) Higher fuel costs could benefit budget airlines. http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1143889/1/.html) 5) Manirajan.( 2012, September) Lion Air Challenges AirAsia With Malaysian Low-Cost Carrier 6) Businessweek.(2012,September) airasia bhd AIRA:Kuala Lumpur http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=AIRA:MK 7) Skytrax