Swot Analysis Airasia Essay
SOOT Analysts Strengths The achievement that Raisin received in 2012 is the world’s best low cost airline (Raisin Bertha, 2013). The strength of Raisin is that, they are leading low cost airline in today’s world and have good company strategic management with a successful story in the airplane industry. Their operational strategy that they have formulated at the beginning is consistent with their company’s objectives and was well conducted.
Due to this, Raisin able to create strong brand equity and generate more loyal customers because Raisin fulfilled their customers by providing airline tickets at rower prices. Raisin is no-frills airline that offers low ticket prices by cutting all the traditional services, providing streamline operations, landing in secondary airport and linking with other service providers like hotels, car rental and etc (Raisin Bertha, 2013). Raisin have fewer management level, focused and aggressive management, this also one of the strengths of Raisin.
With this, Raisin allows their employees to work in a more simple, effective and efficient manners. Due to this management system, Raisin are able lower their operation cost by having a single aircraft fleet like Boeing 737 also is one of the strengths of the Raisin. Low cost operations allowed Raisin to offer cheaper flight tickets to the customer compare with those with higher cost operations Airlines companies. Moreover, Raisin has been very good in information technology aspects where most of its transaction and services can be done online.
With strong information technology, Raisin also provided web and mobile check-in services, self-manage booking services, check flight status and etc which will make things convenient for the customers and the employees as well (Raisin Bertha, 2013). Weaknesses Since Raisin is no-frills airline so they will cut down unnecessary services and lead to a lot of customer complaint about their services. So that Raisin weakness is that the service provided is very limited due to Raisin is a low cost airline. Read another article “SWOT Airasia“
This may cause uneasiness for certain customers because the service provided is not as good as normal Airlines. For example, customers have to walk all the way to the cabin compared to normal airlines where an escalator is provided. Furthermore, Raisin might not be ready to handle some unexpected situation due to its limited human sources and the staffs refuse to do any modifications at check-in, claiming that it is impossible but it used to be possible for other airlines companies.
Besides, customers claimed that Raisin deliberately assigning bad seats for people who didn’t pay for a seat in order to increase revenue. Raisin seem to be trying to make their customers to pay extra for picking a seat in order to avoid bad seat. Their seat pitch has often been complaints by the customers. Opportunities The establishment of KALMIA is the opportunity for Raisin by creating value-added arrives in which shedding its low cost terminal label to provide Business Class services, upgrading the building and increasing the airport facilities (Star Publication, 2013).
These value-added services allow Raisin to improve in their customers’ satisfaction and rebuild the relationship with their customers as well as their Soot Analysis Raisin By curvaceously an opportunity for Raisin. This is because Asian middle class population has been steadily increases from year to year and they will rather choose low cost airlines rather than traditional airlines. This creates a larger market and huge opportunity to Raisin. As we mentioned above, the rises in the number of tourists visit to Malaysia and this will lead to demand for air travel increased.
Threats There are quite a number of low cost airlines, for example Mailing Air, Nook Air, Firefly, Strata Asia Airways and etc which making Raisin a late entrant and it will make them gain lesser popularity. Besides, these airlines competitors are competing with Raisin with the same strategy, the low cost strategy. So, Raisin need to upgrade its products and provide value-added services to compare with the competitors to boost its sales. So this has slowly caused the higher operation cost.
Besides, the fuel price is constantly fluctuating in the airlines industry is also the threat for Raisin. In order to be the low cost airline in the industry, the fluctuation in fuel price making Raisin difficult to ensure that they are providing the airline tickets in lower prices. Furthermore, the technology aspect would possess a threat toward Raisin if Raisin’s systems are not properly managed, maintained and backed up, there would be risk of system disruption due to heavily reliance on online transaction.