CopyApr 1, Executive Summary. Pestle analysis of the AirAsia shows that liberalization in the air market of Asia Pacific countries has improved with the international market access. It has also been found that there has increase in growth of number of airlines operating in this region and also the number of passengerAir Asia case study - Free download as Powerpoint Presentation. Jun 3, Air Asia is a low fare airline of Malaysia, it had one of the largest number of airplanes and flying destinations.
Hire Writer With loss still remaining on their income statements, major carriers, including Delta, are searching for deferent ways o face the new low-cost competition. Based on this research and analysis, our report is intended to provide an objective macroeconomic and industry forecast for the coming year and provide recommendations to Delta.
The Macroeconomic Environment We now analyze the U. Agronomic environment during the historic and current periods.
These international economic problems caused the dollar to strengthen against foreign currencies, which in turn debilitated U. This deteriorating environment gave way to the current period, greeted by recession. Worries related to the war with Iraq, as well as persistent concerns about the course of economic activity and corporate earnings, created a high degree of risk aversion mongo Dustless executives Tanat constrained capital spending Ana Gap analysis air asia.
I nose factors will be discussed in more detail in subsequent analysis.
Inflation Analysis The general trend for inflation during both the historic and current periods has been to remain low. For example, in the airline industry, Internet fare bookings have decreased overall commission expenses.
However, profit margins were contracted as rising costs created higher prices in a competitive market environment. Capacity Utilization In our previous analysis we mentioned the effects of Gap analysis air asia productivity and market competition on inflation.
These factors were fueled by the overall favorable economic conditions. After analyzing the differences and trends in the macroeconomic environment between the historic and current periods, we now focus our attention on the Federal Reserves role in the economy.
Feeds Response To meet the goals of high growth, low inflation, and low unemployment, the Fed looks at the range of variables discussed in previous analysis. The Federal Reserve also lowered the targeted federal funds rate in order o reduce the strain on the economy caused by international economic instability Asia, Russia, and Latin America.
As mentioned in the Inflation Analysis section, price increases have been low throughout this period due to: Decrease in overall spending Decrease in wealth due to poor stock market returns High unemployment rates Lower capacity utilization In the present, fiscal policy has provided additional support to consumer spending.
At present, inflation, for the first time since the early sass, is as low as the Fed wants so low, in fact, that threes a remote risk of the economy tipping into a debilitating deflation. The macroeconomic environment has great impact over the strategies used by industries and firms. To illustrate this relationship, we presented in this section an analysis of the most influential factors in industry and firm decision making which are: Our analysis also covered the inverse relationship that exists between the unemployment rate and both capacity utilization and consumer confidence.
The next section focuses on the airline industry. Agronomic environment to the overall industry performance during the historic and current periods.
Our main focus will be centered on the industry contribution to GAP, its competitive environment, pricing and economies of scale strategies, and its major costs.
The Airline Industry All the macroeconomic factors we have analyzed have direct influence over the behavior of the different industries in the economy.
In this section, we discuss the airline industry performance during the historic and current periods by emphasizing the relationship it poses with the macro environment. Traditionally, there has been a direct relationship between the growth of the economy and the growth of the industry.
For instance, during the historic period, the industry and the economy were both characterized by decreasing unemployment, and as the GAP improved, the industry sustained profits.
In the current period, the industry was badly affected by the existing recession, and even with the recent improvement in the economic environment, the industry has not been able to recover at the same rate as the economy.
The changes in the macroeconomic environment have great influence over the industry mainly due to its principle characteristics: The current market structure AT ten Lorene Ministry Is centralize Day a null degree AT market incarceration with a small number of dominant, large firms although other producers are present.
Traditionally, entry of smaller firms into this market was moderately difficult due to strategies used by the Big Six such as: The most important challenge faced is the change in the industry competitive environment. As the airline industry entered the current period, it faced problems related to the general economic recession.
A new breed of carriers is gaining strength in this environment: During this period, airlines reported high net profits linked to the period of economic expansion discussed in the macroeconomic section of this port.
Unfortunately, from to the present, the industry has accumulated net losses. Com bubble also negatively impacted the industry. This deteriorating behavior is once again consistent with the performance of the overall macroeconomic environment.
At the present, the low-cost carriers are capitalizing on the debt of the major carriers.A value chain analysis can provide an assessment of the areas in which Air Asia can add the most value for customers, which a gap analysis identifies the resources that Air Asia must acquire to implement a selected strategies.
In an attempt to bridge the gap, AirAsia stepped in as the affordable carrier aiming to become a household name for air travel in and around Malaysia. Today, AirAsia is popular for its cost cutting techniques, essentially by the use of same series of planes.
AirAsia’s remarkable track record of success over its first 12 years has come at a price – more competition as others look to duplicate the group’s formula. Political Analysis. Air Asia Berhad operates in an extremely regulated and political environment of the ASEAN region.
The political establishment of the Aviation Industry across the Asian continent is governed by strict rules and regulations which favor the passenger safety at the priority level. The Gap Between An Oil-Rich Country And . Air Asia has a number of competitive advantages as a low cost carrier that fall into the following general categories; low cost operations, efficiency of operations, proven business model and management expertise and finally a distinctive corporate culture.
Kaplan found out that there was a gap in the airline industry there. • S.W.O.T. Essay on Swot Analysis Air Asia. SWOT ANALYSIS FOR AIR ASIA Strengths, Weaknesses, Opportunities and Threats Analysis for AirAsia Strengths The first phase of the swot analysis is the strengths analysis for Air Asia.