Malaysian Airlines

Economic Factors Local economic factor Competition from Air Asia Was given exclusive monopoly Till the Open S ies Agreement !as given to Air Asia Tra"e "eficits or surpluses Fuel price #employs fuel he"ging metho" to cut "o!n expenses $ase" on oil mar et prices% &usiness savings Limitations of suppliers !hich are sanctione" $y airline an" not on open mar et $asis' as such price may not $e competitive ()* +n"ustry "irectly relate" to ()* an" impacts $oth passenger an" cargo sector of the mar et Malaysian ()* ,-. currently Expecte" to gro! $y /0 1o! "o people !ant to invest or travel economically &ase" on the $asic income of passengers' ho! to improvise to ma e mar et more attractive an" cost effective Fin" out the average income per citi2en #still $eing planne" an" not implemente"% Socio-Culture Segment Wor force "iversity The tren" of values amongst Malaysian on travel 333 +mpact of population on environmental issue #pollution etc-% Concerns a$out the environment

 The a$ility to a"apt !ith "ifferent cultural $ac groun" an" nee"s Shift in preference regar"ing pro"uct an" service characteristics +n flight shopping facilities 4 enhances customer values *rovi"e in house training at MAS aca"emy

*olitical5Legal Factors Competition an" anti monopoly la!s As state" a$ove' competition !ith government su$si"i2e" MAS Taxation la! 333 )eregulation *hilosophy Open S ies Agreement $eing !aive" $y government of Malaysia' hence creating competition E"ucation an" policies *rovi"e in house training at MAS aca"emy

Technological Segment *ro"uct innovations Online $oo ing' tic etless Customi2e" travel itinerary Application of no!le"ge 333 6e! communications technologies Online tic eting an" flight $oo ing systems *hone $oo ing #mo$ile%

(lo$al Segment +mportant political events 333 Critical (lo$al Mar et Comment on glo$al airline in"ustries an" impact to MAS #to fin" out% Mergers' glo$al political events' shoul" pursue more internationally or "omestic en"eavours3

)emographic Segment *opulation si2e 7. million citi2ens #shoul" fin" out age group !hich !ho !ill Age structure 3333 (eographic "istri$utions Ma8or cities in Malaysian have presence of local airports !hich have "omestic flights $y MAS +ncome "istri$ution +n"ustry heavily competes !ith lan" transport as Malaysia is not a large country hence similar concept of Air Asia9 Everyone Can Fly is $eing a"opte" $y MAS through its su$si"iary company calle" Firefly This flight options ena$les me"ium income level an" a$ove to fly affor"a$ly

*orter:s Frame!or

Threat Of 6e! Entrants Competition from Air Asia

Suppliers: &argaining *o!er +n flight foo" &oeing Airlines #3leasing policies%

Su$stitutes An" Complement

+nternal Environment

Strengths 333

Weakness ??

Enduring ;alua$le

<are 6on su$stituta$le Costly to imitate

Significant Efficiency =uality +nnovation <esponsiveness

>- What "o !e "o to a"" value for customers 7- +s it Core competence3 ;alue' rare' costly to imitate' non su$stituta$le Why3 Efficiency =uality +nnovation etc-