REPORT OF THE MERITS OF THE COMPETITIVE POSITION FOR AIRASIA

ACKNOWLEDGMENTS

This group assignment, under its new title academic report of the
merit of the competitive position of a AirAsia, would have been
impossible to research, update, and bring to its present form if it
weren’t for the contributions of a number of individuals. First, the
authors would like to express their sincere gratitude to Mr Yeoh
Khar Kheng, lecture for his guidance, patience, understanding,
and encouragement throughout this process. The authors would
also like to thank Mr. N.M. Thangaraj, module tutor for his
overall assistance and direction during this revision. Last but not
least, I would like to thank Ms. Irene Khor, Program Manager of
Paramount College for useful comments and suggestions.

Thank you all.

Unity College International, Malaysia (2010) Page I

 REPORT OF THE MERITS OF THE COMPETITIVE POSITION FOR AIRASIA

EXECUTIVE SUMMARY

This report provides significant input for the competitive position to conduct an
environmental analysis in the context of AirAsia's international and external business
operations, describing the major variables involved and the impact of the internal and
external factor confronted by AirAsia. Besides that, this report also helps to identify
AirAsia's competitive strategy and analysis how the strategy is implemented to gain
competitive advantage. The increasing importance of “strategic management may be a
result of several trends. Increasing competition in most industries has made it difficult
for some companies to compete. Modern and cheaper transportation and
communication have led to increasing global trade and awareness,” (Cathy, A. Enz
2009). Gary Hamel and C. K. Prahalad (1989) declared that strategy needs to be more
active and interactive; less “arm-chair planning” was needed. They introduced terms
like strategic intent and strategic architecture. Their most well known advance was the
idea of core competency. They showed how important it was to know the one or two key
things that your company does better than the competition.

Nowadays, the competition among airplane industries is very tough. According to Daniel
Chan (2000), with just about two years to go to the turn millennium, air wars over Asia
are hitting up, with some of the world’s biggest airlines engaged in intense over Asian
skies. This report provides significant input for AirAsia’s internal and external
environment which influenced the competitive position. It is scientifically based and
useful at an empirical level of action. It is scientifically sound in that the authors
demonstrate their knowledge of the literature on the subject and the analysis is
conducted rigorously. This report also contributes to a better understanding of the
internal and external environment which influenced the competitive position of an airline
industry in Malaysian. The remainder of this paper is structured as follows.

In Section 1 provides brief introduction of AirAsia including the importance of vision,

mission and the strategic levels. In Section 2 & 3, the Authors address the external and
internal environment of the organization, introducing concepts such as Porter’s five
forces model and Company’s Macro-Environment, SWOT analysis and PEST analysis.
In Section 4 & 5, the writers provide significant resources and capabilities shaping the
competitive position. In Section 6 & 7, the writers discuss the Competitive Advantage
and Internal organizational. Finally, a conclusion is provided in the last section.

Unity College International, Malaysia (2010) Page II