SWOT ANALYSIS OF AIR ASIA :
Strength: -
They have strong relationship with government and political leaders to operate smooth function. They have good management team who work efficiently with strong utilisation of Information technology, so that each and every customer can book tickets online by choosing easy method. Air Asia penetrates more and more market because of their low cost mentality, this help them to become low cost leader in Asia pacific region. With strong working relationship with government bodies can help them to work smoothly in the country For example: working with Thai Prime Minister Mr.Thaksin Shinawatra who holds 50% stake in the company help Air Asia to capture good market in Thailand.
Weakness: -
Air Asia don’t have their own maintenance hub, initially they started for few planes to maintain. By the passage of time, they have come up with 100 planes, but in future they are expecting another 100 planes. So they will be facing to maintain all the planes at a time. It is one of the big disadvantages not to have their own maintenance hub. Second problem with Air Asia is one cannot change their, if it is delayed or get refund for the same and also charging more on baggage’s to cut the cost of fuel. Because of limited staff they cannot handle the problematic situation when arise. By providing low cost they fail to provide basic service to the customers in order to maintain the profit margin.
Opportunities:-
Explore more on Asian markets; there are Asian cities with population of more than 1 million which are middle class, so they are targeting more on middle class people. Joint venture with virgin blue group. This group want to extend their service to South East Asia, so Air Asia can have joint venture with virgin blue group to capture more markets with them. Increasing oil price which can be threat to all airline industry. But Air Asia doesn’t have their customers already enjoying low price irrespective oil price goes up or down. Due to increase in growing demand of Air Asia customers. Prospects generates for new routes for customers and more numbers of airport deals.
Threats: -
Some charges like Air departure, landing cost security charges are not in control of airlines operators. This threat is for all airlines but especially to those airlines who are keeping their rates very low. Full service airlines can enter any time by reducing their cost. Because profit margin of Air Asia is 30% which is very less as compare to any other full service airlines. Problem may occur due to heavily depend online sales, like disruption or any other fault can happen to system which may result directly on sales. There will be lack of confidence among customers due to terrorist attack, accident, government policy etc.
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