Business Management

Air Asia Situation Analysis

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Word Count

1000 words


Strategic Management


3 Days

Assignment Criteria

Assessment Description 


In groups of 3-4 students, you will review the AirAsia case study provided in your textbook (see p.470). Based on  your research into the pre-selected company, profile the company's position using Situational Analysis tools and  approaches. In the analysis you will identify factors both internal and external that impact the company's capacity  to achieve its key strategic goals. You will need to research current theories and practices from literature as they  relate to strategic analysis. This research should be used to provide evidence that supports your evaluation and  recommendations.  

Your report should: 

  • Provide a situational analysis of the company under investigation. 
  • Analyse and evaluate the current company's current awareness of key situational factors.  Discuss the fit between the company strategy and its context. 

The report requires:  

  • The use of information from the pre-selected organisation.  
  • The use of analytic tools to undertake the Situational Analysis.  
  • A range of references from literature that should demonstrate breadth and depth of your research.  The use of the wider literature to provide evidence for your evaluation and recommendations.  The display of critical evaluation and diagnostic skills in the choice of the data included.  The display of critical evaluation in the choice of the information sources used.  

Appropriate and accurate use of the Harvard Referencing System.

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Assignment Solution

A Report on the situational analysis of Air Asia

Executive Summary:

AirAsia one of the most popular and dominant airline’s industry within Asia has become the winner with respect to the best low-cost airline service providers in the world. According to the present day business requirement, the company has established a low-cost carrier business model (LCC) with certain embedded characteristics. The invention of this new business model had been a success and had also greatly contributed to the growth and expansion of AirAsia. According to the requirement of the task, an attempt has been made in performing an analytical study exploring the various facets attached with respect to the present business scenario of AirAsia. In this particular assignment, a situation analysis is designed in order to meet the task criterion. A look through into the key strategic factors in the implementation of various business analytical tools like SWOT, PESTLE further evaluates the issue to a greater extent. An illustration of the already applied Low-Cost Carrier (LCC) business model also helps in better understanding of the business operations of AirAsia. The company has also made certain alteration in the pricing structure, staff management and passenger's safety issue with the implementation of the Low Cost Carrier (LCC) business model. Additionally the possible challenges that AirAsia may likely to face with the introduction of this particular business model is also included. Therefore this particular assignment is designed with an approach to deliver an insight regarding the present day business situation of AirAsia.


It was in the year 1994 when the foundation stone of AirAsia was placed and on 18th November this airlines company initiated its operations. Further, in the year 2001, the co-founder of Tune Air Sdn Berhad went with an agreement with the Malaysian Government to take complete possession of AirAsia. Considering the present day business scenario of AirAsia, this airlines company has become one of the award-winning airline’s organization within the Asian continent from the year 2001. The company owns a fleet of 72 aircraft and provides flying services to 61 domestic destinations and 108 international locations. More than 400 planes are operational on a routine basis from Malaysia. In the year 2010, this company achieved a record for flying its 100 millionth passengers (Tan, 2015). It is also worthy to mention that AirAsia was the first airline’s organizations that introduced low-cost flight services within Asia and also launched the low-cost carrier (LCC) business model. Reports reveal that in every three minutes a single AirAsia jet either takes off or lands somewhere within Asia. This organization has inherent beliefs in no-frills, convenient flying, low flying cost with facilitating flying provisions for individuals belonging to any social strata (Ahn, 2011).

The business philosophy followed by AirAsia state 'Now Everyone Can Fly.' The company also has given a significant concentration in formulating the missions and visions. The vision embedded within the business framework of AirAsia reveals that this business organization desires to see itself as one of the largest service providers with respect to low-cost carrier providing flying services to 3 billion individuals who presently exist within the underserved group. The mission of AirAsia includes to maintain quality standards with the establishment of a globally identified ASEAN brand and also to deliver the best professional ambiance for the employees of this organization (Taipei, 2015). 

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