Swot Analysis for Airasia Essay
For example, Shin Corp… (formerly owned by the family of former Thai Prime Minister – Mr… Taking Sinatra) hold 50% stake in Thai Raisin. This has helped Raisin 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 the ideas of the low cost airlines in Europe and USA. For example, Southwest’s airline – People strategy (employee come first); Ryan’s operational strategy (one of the original budget / no -frills airline); Asset’s branding strategy (linking with other Soot Analysis for Raisin By Anglophone
* Raisin’s brand name is well established in Asia Pacific. Besides the media advertising and promotions, Raisin has many other link-up with the hotels industries, banking industries (Raisin Citibank card) etc.. Which has created a unique image among travelers. For example, the Citibank card; it gives priority booking and special fares to the travelers.
* Raisin is
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* The excellent utilizations of IT. The excellent utilizations of IT has also contributed much to Raisin promotional activities.
For example, emails alert – which update the travelers and also to do on- line tickets purchases convenient.
* No MR.. Facility and heavily outsourcing Raisin does not have its own maintenance, repair and overhaul (MR..) facility. Air Asia outsource to another company for MR.. Services. SST Aerospace is Air Sais’s MR.. Service provider. Thus, they are heavily relying on SST aerospace for their MR.. Facility. There might be a risk of loss of control if the appropriate monitoring and controlling tools are not put in place SST aerospace. Too dependent on IT Despite being the first airline in Southeast Asia to utilize e-ticketing, there is a high risk of having system disruption. When the system break down, it would show that Raisin’s system is not robust enough to handle booking efficiently. Such incident will eave a bad impression on Raisin, causing customer’s confidence and satisfaction level to drop and resulting in loss of customers. Read another article “SWOT Airasia“
* Unable to handle irregular situation Being a budget airline, the main idea is to keep cost low.
Thus, having low human resources is not an exception. Hence, this results in not able to handle irregular situation that arises during operations to cater situational needs. Raisin receive numerous complaints from customer on their service. For example, flight delays and unknown charges incurred * Oil Prices Increase The increasing in oil price may sound like a threat but being a LLC (low cost carrier) deader on the other hand, its cost will be still the lowest among all airline company. The major airline carrier would have large and older plane.
Older plane are less fuel efficient compare to Raisin smaller and newer aircraft. LLC planes are on average 1 – 5 years old. Thus, being a leader in budget airline with more fuel efficient plant, the increase of oil price will squeeze out unprofitable airline carrier.
* The Opening of SEAN skies Following the liberation of SEAN skies, Raisin has more opportunity to expand further in the region. Raisin SEAN open its regional office in Strata Just months before the open sky policy to show her dominant present in the aviation industry. Increasing demand of flight from younger consumer has increase tremendously over these few years. There have been a surge in the demand from the younger generation to travel. This is further prove by the DATA (Adventure Travel Trade Association) states that Gene Y is the faster growing segment in the travel industry. However, being young, they have limited financial capabilities and therefore being a low cost carrier will gain an upper hand acquiring these new consumer. THREATS Civil unrest in middle eastern countries causes fluctuations in oil prices.
As airline operations depend heavily on fuel prices, the currently rising fuel prices would trim the profit margins of Raisin, despite measures taken to reduce the impact. This has also indirectly affected Raisin Ax’s PIP listing. It was delayed by one year and is expected to commence listing in December 2012.
* Constant emergence of low-cost carriers to ride on the wave of budget travel. As air travel becomes more affordable due to competitive pricing from various Laces, more well-known companies are eyeing on budget airline.
The formation of Strata and Tiger Airways in 2003, Scoot in 2011, offering similar pricing as well as destinations, and the recently formed Mailing Airways which operates in Malaysia itself, directly affects the passenger load for Raisin as consumers now have more products to choose from.
* Newer and more attractive products of competitors According to Ashtray reviews, the overall satisfaction for Raisin has dropped significantly with a score of 6. 5 out of 10. Competitors with newer product offerings using newer aircraft types might prove to be a more attractive choice.