AIR ASIA ZANARIAH ZAKRI AHMAD RUSYDAN MOHD SAUFI NURUL SHAFINAZ KHOLIDI

Vision To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Mission To be the best company to work for whereby employees are treated as part of a big family Create a globally recognized ASEAN brand To attain the lowest cost so that everyone can fly with Air Asia Maintain the highest quality product, embracing technology to reduce cost and enhance service levels

MACRO ENCIRONMENT ANALYSIS Political Opportunities-Deregulation and privatization present Airasia with opportunities for new routes.-The Malaysian Government has always supported the Malaysian airline industry. Threats-Air Asia and its competitors can also be negatively affected by government decisions. -Civil conflicts and conflicts between regional governments can also affect Air Asia’s operations. Economic Opportunities-The economic situation in Malaysia is stable. Threats-Fluctuating oil prices are a major challenge for airlines. Social Opportunities-Southeast Asia offers an important advantage to airlines because the region is composed of multiple ethnic groups that are able to speak several languages.-The rapid urbanization of Southeast Asia clearly helps airlines because it forces governments to develop important infrastructures and open new airports in order to facilitate the flux of people between countries. Threats-The emerging middle class is growing more rapidly in countries like India and China. Technology Opportunities-By utilizing information technology, airlines have been able to reduce their operating costs. Threats-By being highly dependent on technology, LCCs incur costs in ensuring that their systems operate smoothly and safely.

INDUSTRY ANALYSIS Substitute Products  Customer easy to switching to other alternative transport or other airline. Current Rivalry  High number of competitor. Potential Entrants  Customer loyalty is low again airline. Bargaining Power of Buyers  Low switching costs. Bargaining Power of Suppliers  High switching cost.

STRENGTHS 1. Strong management team 2. Low cost operations 3. Single type fleet minimize maintenance fee and easy for pilot dispatch WEAKNESSES 1. Service resource is limited by lower costs 2. Non-central location of secondary airports OPPORTUNITIES 1. Long haul flight is an trial to get undeveloped market share 2. Differentiation from traditional LCC model by adding customer services or operation as full service airline with low fare 3.Ongoing industry consolidation has opened up prospects for new routes and airport deals THREATS 1. Full service airlines start cut costs to compete 2. Accident, terrorist attack, and disaster and affect customer confidence 3. Aviation regulation and government policy FIRM ANALYSIS