Covers mission vision and all the internal and external evaluation, including IFE EFE SPACE MATRIX BCG MATRIX GRAND MATRIX QSPM Feel free to contact : rehankango@ymail.com +92337548656

1. Air Asia X
Presented by:
Mahwish Shaikh
Ahsan ali Kehar
Mehrunisa Shaikh
Zehra Shoro
Rehan ali kango
Assigned by:
Sir Abdul Salam

2. Content
 History
 Vision
 Mission
 External factor
evaluation(EFE)
matrix
 Michael Porters five
forces
 Internal Factor
Evaluation
 Swot matrix
 Grand Strategy Matrix
 The Quantitative
Strategic Planning
Matrix (QSPM)
 Conclusion

3. ZEHRA SHORO

4. Vision And Mission
– Vision statement
– To solidify our position as the global leader in Long-haul, low cost aviation and create the first global
multi-hub low-cost carrier network along with other carriers of the Air Asia group.
– Mission statement:
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 AirAsia maintain the highest
quality product, embracing technology to reduce cost and enhance service levels

5. History

6. Marketing

7. Competition

8. MAHWISH SHAIKH

9. External factor evaluation(EFE) matrix
Interpretation: Air Asia X is doing good in industry as their EFE is above average as their result is 2.95
S.
No
Key external factors Weight Rating Weighted
score
Opportunities
1 New Products ( charter planes) at low cost .05 1 0.05
2 Create more business class cabins for higher revenue .15 2 0.3
3 High demand so new destinations can be achieved .1 4 0.4
4 New markets can be targeted Ex: china and India .1 4 0.4
THREATS
1 Intense rivalry from competitors .15 3 0.45
2 Fuel prices .1 3 0.3
3 Increase in MRO cost .2 3 0.6
4 Economic conditions .05 1 0.05
5 Government airline .1 3 0.4
TOTAL 1.0 2.95

10. Michael Porters five forces
Interpretation: Starbucks has been strong in all five forces within the completion and industry
Competitive rivalry or competition Low They have threats from the competitors but currently they have low
rivalry due to their differentiation and low cost in the industry
Bargaining power of buyers or
customers
low There is very low bargaining power of buyers because, Air Asia X allows
customization of tickets, low cost ticket in long distance flights
Bargaining power of suppliers High There is very strong power of suppliers among the airline industry,
because there are few aircraft manufacturing companies, airports cost
and there are few companies which provide airplane fuel, aircraft parts
and equipment’s
Threat of substitutes or substitution Low There are very low substitute products at the cost which Air Asia X is
providing
Threat of new entrants or new entry Low There is very low entry of new entrants because there are already so
many competitors in the market, and opening a new air lines cost years
in getting the license from aviation industry and government approvals.

11. Internal Factor Evaluation
key internal Factors weight Rating Weighted Score
Strengths
1 Low costs 0.15 4 0.6
2 Fleet flexibility 0.025 3 0.075
3 3-3-3 seating order in total 377 total seats in the plane 0.1 4 0.4
4 Safety conscious 0.025 3 0.075
5 Low on ground operational cost 0.025 4 0.1
6 Political support from government 0.025 3 0.075
7 High Brand image 0.1 4 0.4
8 Own training academy 0.025 3 0.075
9 Parent company Resources for backing 0.1 4 0.4
10 Focusing on scale 0.05 4 0.2
11 Availability of customer’s information from Air Asia 0.025 3 0.075
12 Ticket transparency 0.05 4 0.2
13 Maximizing flight utilization 0.05 3 0.15
Total 0.75 2.225
Weakness
1 Low margin on profit 0.05 1 0.05
2 No terminal facility at facility at airports 0.05 2 0.1
3 No own Maintenance and repair 0.025 2 0.05
4 Sharing website with parent company (website interruption) 0.025 1 0.025
5 Malaysian Government restriction of new destination 0.1 2 0.2
TOTAL 0.25 0.425
NET TOTAL 1 2.65

12. AHSAN ALI KEHAR

13. SWOT MATRIX
Strength-Opportunities
– New markets and new demands can
be created by providing those services
with low cost and high quality can be
moved to other countries as well (S1,
O4)
–
– With strong brand image new
business cabinet class can be created
for generating higher revenue. (S7, O2
)
Weakness-Opportunities
• A s air Asia is keeping low profit
margin they should discover more
destination and create new
demands (W1,O3)
• Because of Malaysian Government
restriction of new destination within
the country now new markets can
be tapped in other countries.
(W5,O5)

14. SWOT MATRIX
Strength-Threats
– As intense rivalry competition with the competitors air
Asia is giving them tough time by providing good
services with minimum cost (S1, T1)
– Fuel prices are the biggest threat for any airline. Air Asia
has managed it with very well by maximizing flight
utilization and low operation cost ( S5,S13 T2)
– Increasing MRO (Maintenance and Repair) cost are also
big challenge. Air Asia has coped with maximum
utilization of their flights and operations ( S13, T3)
Weakness-Threats
• As Air Asia is keeping low margin
on profit increasing MRO cost can
affect them in future (W1, T3)
• With No terminal facility at
airports in this intense rivalry
competition with government
airlines and others is also a big
threat for Air Asia. (W2, T2, T3)

15. KANGO, REHAN ALI

16. Space Matrix

17. Space Matrix
Financial Position Rating
1 Differentiation and low cost is the source of revenue +7
2 Air Asia X15 million USD behind the projected revenue +3
3 Other low budget airlines halted operations because of
Financial crisis
+5
4 Resourceful and established parent company +6
Total 21
Industry Position Rating
1 Lots of customers for long haul distance +7
2 Air Asia provides customer to choose flights +4
3 Own Social media website and booking and promotion on it. +4
Total 15
Stability Position Rating
1 Advantage of low cost -1
2 Advantage of high brand image -3
3 Volatility in fuel price and maintenance and repairs -4
4 Air asia hold Sky trax in 2008-09 -1
Total -9
Competitive Position Rating
1 Pre booking -2
2 Low cost(cost leadership) and differentiation -1
3 Huge market share of lower class and middle class -1
4 Geographical location of Malaysia covering huge markets of
china and india
-3
Total -7

18. Space Matrix
• SP Average is -9 ÷ 4= -2.25
• IP Average is +15 ÷ 3 = 3
• CP Average is -7 ÷ 4 = -1.75
• FP Average is +21 ÷ 4 = 5.25
• Directional Vector Coordinates:
• x-axis: (-1.75)+3=
• y-axis: (-2.25) + (+5.25) = 3

19. MEHRUNISA SHAIKH

20. Internal External Matrix
Interpretation:Air Asia X’s total weighted score of
IFE is 2.65 which relay in average division cells. EFE
total weighted score is 2.95 which is in medium
division cells. That relays in second stage which is
the (with hold and maintain) Stage for any
company. Here Air Asia X can go for the strategies
like market penetration and product development.
These will be the best and most suitable strategies
for them in this division.

21. The Quantitative Strategic
Planning Matrix (QSPM)
There are two alternative strategies which Air
Asia X need to consider
• (1) More premium seats (flay bed seats)
• (2) Initiate talks with Malaysian
government and get permission for new
destinations
• According to the sum of total attractiveness
we analysis that strategy 2 with Attractive
score of 3.775 indicates that Air Asia X
need to initiate talks with Malaysian
government and get permission for new
destinations.
Key Factors
Weight AS TAS As TAS
S. No
OPPORTUNITIES
1
Malaysian airline restructuring .05 1 0.05 4 0.2
2
Create more business class cabins for higher revenue .15 3 0.45 1 0.15
3
High demand so new destinations can be achieved .1 2 0.2 3 0.3
4
New markets can be targeted Ex: china and India .1 1 0.1 2 0.2
THREATS
1
Intense rivalry from competitors .15 2 0.3 3 0.45
2
Fuel prices .1 - - - -
3
Increase in MRO cost .2 - - - -
4
Economic conditions .05 1 0.05 2 0.1
5
Government airline .1 1 0.1 2 0.2
Total 1 - - - -
STRENGTH
1
Low costs 0.15 1 0.15 2 0.3
2
Fleet flexibility 0.025 - - - -
3
3-3-3 seating order in total 377 total seats in the plane 0.1 2 0.2 3 0.3
4
Safety conscious 0.025 - - - -
5
Low on ground operational cost 0.025 1 0.025 2 0.05
6
Political support from government 0.025 1 0.025 2 0.5
7
High Brand image 0.1 2 0.2 3 0.3
8
Own training academy 0.025 - - - -
9
Parent company Resources for backing 0.1 1 0.1 2 0.2
10
Focusing on scale 0.05 - - - -
11
Availability of customer’s information from Air Asia 0.025 2 0.05 3 0.075
12
Ticket transparency 0.05 - - - -
13
Maximizing flight utilization 0.05 1 0.05 3 0.15
WEAKNESS
1
Low margin on profit 0.05 1 0.05 2 0.1
2
No terminal facility at facility at airports 0.05 - - - -
3
No own Maintenance and repair 0.025 - - - -
4
Sharing website with parent company (website interruption) 0.025 - -
5
Malaysian Government restriction of new destination 0.1 1 0.1 2 0.2

22. Q1: what is the general environment in
the global airline industry?
– Airline industry is an important factor in economic growth of many global
economies. It is one of the industries where the rules and regulations are highly
sensitive because a single mistake could not only cost industry a loss of million
but can cost the world some priceless and precious lives of the peoples.
Passengers are increasing day by day but in that industry, there is very difficult
to enter. Economic stability is the major cause which can make the airline
successful, however airlines consumption of fuel is very vast so their profits and
operations have huge impact if the price changes.

23. Q2: What factors led to the success of air Asia as it
grew and expanded from Malaysia to other
destination in southeast Asia and beyond?
– Vision of the leader
– Low cost (cost leadership)
– Large number of customers
– Relying on their own

24. Q3: What broad elements of AirAsia’s original business model had to be
revisited as it introduced AirAsia X and moved beyond short to medium
hail service to longer haul service? How did industry and competitive
environment change during this expansion?
– Tony Fernandes wants to move to long haul from long time, he had to wait
because the strategies which he had applied to AirAsia was different , so after
he got the positive response from AirAsia then he decided to move to long haul
but with the same elements like low cost and differentiation, at that time
Singapore based airline was providing the low cost fare in long haul but they
were not as much as low like the AirAsia X so in short time they became the
market leader by capturing the huge market share.

25. Q4: How can X best leverage the extensive network of the
regional sister company AirAsia to select new and profitable
destination for X?
– AirAsia X can best leverage from the extensive network of AirAsia by using
their website through which they can start a poll by asking from the audience of
short haul AirAsia passengers that if they wanted to fly in long haul which
destination they would want to go, same type of surveys they could do via using
the email database of AirAsia

26. Q5: What specific offerings had to adjusted or newly provided
when AirAsia X introduced long haul service? What was the
general response? did the differ between markets?
1. They had to focus more on the economies of scale
2. They should sell the items only which they think people will buy,
3. They should adjust in food catering that all the food they carry onboard must be
sell in order to reduce the wastage
4. In AirAsia, they had no flatbeds so in long haul they had to provide some business
class seats
5. As in long haul customers’ needs comfort so they need to provide comfort kit etc.
6. As long haul, operated internationally currency exchange system should be
onboard

27. Q6: How can Darren Wright help shift his marketing team's
mentality away from a startup mindset and simultaneously
and prepare for a global IPO within the next twelve months?
– All of the marketing teams in different countries were working individually there
was no integration and collaboration among them so it was difficult to figure
out the total expenditures of these advertisings so he integrates the advertising
activities globally and Osman Rani appointed a new CFO to look out the all the
finance related activities,

28. Q:7What is your general assessment of
X's prospects and future?
– As X is currently enjoying the huge market share, their future could be more
profitable if they could explore some new locations, they should position
themselves as the market leader among the low budget airlines so they could
ripe the revenue from the brand image as well, they should also get political
support from the government as X bringing huge revenue and also promoting
the tourism,

29. Conclusion
• Customer Safety is very important in the airline industry, so for that there
are very tough and high rules and regulations to enter in the airline
industry and Air Asia X main objective was to provide the safety to the
customers with lowest cost in the airline industry, they have advantage of
the rich parent company AirAsia which is not only resourceful but
contains huge domestic market share with high brand image. As AirAsia X
emerges form the Air Asia they had to adjust the multiple offerings so
meet the requirements of the long-haul customers. AirAsia X enjoying
great market share in the lowest budgeted airlines and they have the
opportunity to increase that by entering in to the new markets like china
India and Pakistan so they have very productive future ahead.

30. THANK YOU..