Limited aircraft causes AirAsia was cannot prepare of standby aircraft if there is any problem in the operation. Hence, the airline implemented flexible work rules, streamlining administrative functions which allowed employees to perform multiple roles within a simple and flat organizational structure.
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There is some overlapping ownership and there are synergies which clearly benefit both companies. AirAsia Berhad has created a skybridges of culture with many countries, since year they have flying to 81 destinations in 18 countries. Therefore, this capability is a short-term sustainable competitive advantage as AirAsia expands, with overdependence on key staff and possible shallow decision-making.
Therefore, they can reduced the cost by promoting their organization hence it can be reduced the intermediary cost.
The operating fees were as low at the minimum wage. AirAsia X is well positioned to expand premium revenues and cabin AirAsia X has built up a strong niche in the premium end of the market, capitalising on its position as the only LCC with a lie-flat product.
However, all the staff was concern and focused to their customer needs such as offering the lower fares during festive season. Limited services resources Due to their low cost business model they implement, AirAsia Berhad cannot provide additional service to the customers as they require.
Often-bigger competitors will naturally try to fight off AirAsia X as its model poses a threat to their own survival. The fares were not include the meals and if the customers request a meal then additional fee will be charge.
If fuel prices increase further the portion of controllable costs will slip and the gap with full-service airlines will narrow. Passengers will loss the confidence towards AirAsia Berhad which can be affected the name of the organization.
New relationships with Chinese online travel agencies have particularly helped AirAsia X push into one-stop markets ex-China. Such initiatives would help AirAsia X efforts to push up yields and reduce the number of seats sold at promotional prices.
This would result in the loss of customers, as confidence and satisfaction levels drop, affecting profitability. It has done so by reshaping the low-cost airline model, achieving many of the full service airline connectivity features, but at a much lower cost.
Many of the full service airlines are planning to create a low cost operation to compete directly to AirAsia Berhad.
But since the IPO the group has struggled financially. AirAsia X could potentially pick up routes as well as some employees that MAS drops as the ailing flag carrier attempts a challenging turnaround.
It would also increase the margin between the LCC and its full service competitors. This motivated employees, giving them a sense of ownership. Some people like to travel no matter how is the economy goes on, since AirAsia Berhad offers an affordable airfares for everyone regardless of different income categories of people.
Fluctuating Price of Fuel When the price of fuel is too high, this may causes AirAsia Berhad have the problem about the cost of fuel which will have a major dampening effect on earnings.
The remarkable access achieved by Asian LCCs has been largely aided by governments adopting a relaxed approach to ownership and control provisions in the many cross border joint ventures established. Service resource is limited by lower costs. Chinese secondary cities are expanding fast but non-stop routes to Australia and other parts of Southeast Asia are generally not viable.
Punctuality Passengers have to face some trouble by travelling on time to a destination. However it still has to prove it can build a profitable business case beyond its initial expansion, while still securing its strategic foothold in expanding Asia-Pacific markets.
Lufthansa for example is explicitly exploring the possibility of partnering with another airline to deliver a long-haul low-cost operation. Although salaries offered to employees were below that of rivals, all employees were offered a wide range of incentives such as productivity and performance-based bonuses, share offers, and stock options.Another weakness that AirAsia face is, government interference and regulation on airport deals and passenger compensation.
We will write a custom essay sample on Airasia Weakness. The first phase of the swot analysis is the strengths analysis for Air Asia. There are some unique strengths of Air Asia that others company could not defeat them.
SWOT Analysis for AirAsia Strengths, Weaknesses, Opportunities and Threats Analysis for AirAsia Strengths Ø Air Asia has a very strong management team with strong links with governments and airline industry leaders.
This is partly contributed by the diverse background of the executive. The summary of strengths and weaknesses of AirAsia is appended in Table 1 below from MARKETING at Golden Gate Baptist Sem-So Ca. Strengths and Weaknesses In order to become a lifelong learner it is essential to identify your own personal and academic strengths and weaknesses and action each one, so.
Analysis Strengths The achievement that AirAsia received in is the world’s best low cost airline (AirAsia Berhad, ). The strength of AirAsia 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.Download