EFAS AND IFAS

OF AIR ASIA
ABDUL RASYID ROMADHONI
LANGGENG SETYONO 29116009
29116028

M B A LY A M A L K A N F 2 9 1 1 6 2 0 8
WAHYU F RIDHO 29116013
C H A N D R A TA N T R A W 29116114
A L D I Y O S A FAT D 29116211
C H R I S P I N U S S U M B AYA K 2 9 1 1 6 1 8 1
EFAS
MATRIX EXTERNAL FACTOR ANALYSIS
Weighted
SUMMARY
External Factors Weight Score
Score Comments
(Faktor-faktor (Bobot (Rati
(Bobot x (Uraian)
Eksternal) ) ng)
Rating)
Opportunities ( O ) :
1. Liberalization of 0,2 4 0,8 With the liberalization of the capital
Asean capital city of the ASEAN, is expected to
routes boost volume growth from the
financial aspect for AirAsia
0,2 5 1,0
2. Asia middle class Asia middle class growth open an
growth opportunity for AirAsia to expand its
0,1 3 0,3 target market

3. The Asean Open The "ASEAN Open Skies" policy opens
Skies Allows opportunities for AirAsia to open new
unlimited flights routes in ASEAN countries which
among ASEANs untouched and can increase flight
regional air carries volume for AirAsia
beginning
December 2008
Total ( O ) 0,5 2,1
EFAS
MATRIX EXTERNAL FACTOR ANALYSIS
Weighted
SUMMARY
External Factors Weight Score
Score Comments
(Faktor-faktor (Bobot (Rati
(Bobot x (Uraian)
Eksternal) ) ng)
Rating)
Threats ( T ) :
1. Increasing 0,1 4 0,4 In the business world, when there is
competition a profitable business will attract
competitors to open a similar
business. Increased competition can
lead to reduced revenue from AirAsia
0,2 3 0,6
2. Increasing oil Aviation fuel as the primary fuel
price source is greatly affecting the
operating costs of AirAsia, if the
price of the fuel increase it will also
0,1 2 0,2 increase the operational cost

3. Substitute Increased competition in the Low

products Cost Carrier Airlines will lead to the
0,1 2 0,2 division of markets between
competitors
IFAS
MATRIX INTERNAL FACTOR ANALYSIS
Weighted
SUMMARY
Internal Factors Weight Score
Score Comments
(Faktor-faktor (Bobot (Rati
(Bobot x (Uraian)
Internal) ) ng)
Rating)
Strengths ( S ) :
1. Growth in 0,05 3 0,15 AirAsia as the leading Low Cost
revenue Airlines company in ASIA, AirAsia
revenue keeps growing until 2015
(from AirAsia annual report 2015)
0,1 5 0,5
2 . Low operational AirAsia has low operational cost
cost because they only use single type
aircraft which Pilots, flight
attendants, engineers, mechanics
and operations personnel are
specialized in a single type of
aircraft. This means, among others,
that there is no need for costly re-
training of staff, for maintaining
stock with parts for different types of
aircraft, for different knowledge and
skills to operate and maintain
IFAS
MATRIX INTERNAL FACTOR ANALYSIS
Weighted
SUMMARY
Internal Factors Weight Score
Score Comments
(Faktor-faktor (Bobot (Rati
(Bobot x (Uraian)
Internal) ) ng)
Rating)
3. Low distribution 0,1 5 0,5 AirAsia as a lean distribution system
cost which keep their distribution channel
as simple as possible and will cover
the whole spectrum of the clientele
profile. For example, AirAsia ticket
sales mainly accesses through
internet (85%) and by phone through
call center, has few sales office, and
0,15 5 0,75 avoid reliance on travel agents as
4. Attractive ticket much as possible
price
In LCC the passenger only pay for
0,1 5 0,5 what they need so they only pay for
fair base price (i.e. no food and
5. Strong brand beverages)
presence in Asia
AirAsia has strong brand presence in
Asia because they had won World's
IFAS
MATRIX INTERNAL FACTOR ANALYSIS
Weighted
SUMMARY
Internal Factors Weight Score
Score Comments
(Faktor-faktor (Bobot (Rati
(Bobot x (Uraian)
Internal) ) ng)
Rating)
6. Malaysian 0,1 4 0,4 AirAsia is one of the official airlines
government that enables officials of the
support Malaysian Federal Government to
travel around our domestic routes by
using Waran Perjalanan Udara Awam
0,1 3 0,3 (WPUA) for duty travel.
7. Diversification
strategy+ Joint AirAsia as the leading Low Cost
ventures Airline and has the revenue that
keeps growing certainly attract
interest from other companies to
work together. For example joint
ventures between GMF AirAsia
Indonesia and AirAsia aircraft for
fleet maintenance
Total ( S ) 0,7 3,1
IFAS
MATRIX INTERNAL FACTOR ANALYSIS
Weighted
SUMMARY
Internal Factors Weight Score
Score Comments
(Faktor-faktor (Bobot (Rati
(Bobot x (Uraian)
Internal) ) ng)
Rating)
Weakness ( W ) :
1. Does not have 0,15 3 0,45 AirAsia does not have its own MRO
its own facilities, so they must cooperate
maintenance, repair with other companies that provide
and overhaul (MRO) MRO facility in their destination
facility 0,15 3 0,45 countries

2. Receives a lot of Since AirAsia is a Low Cost Airlines so

complaints from the service provided is maximized
customers on their according to LCC systems. For
service example, LCCs are strict when it
comes to no show guests and do not
offer refunds for missed flights
Total ( W ) 0,3 0,9
Total ( S - W ) 1,00 2,2
 ALTERNATIVE STRATEGY
Reasons Pros Contras
SO Strategies
Focus on promotion to Because in Some People who
middle class growth about the Asean, people searching for good
attractive ticket price
most of only quality service will
passanger looking leave air asia- not
come from about the loyal customer
middle class transport
and always ation not
looking for looking
the cheap about
ticket/ service or
promo extra
 WO Strategies Reasons Pros Contras
Use the cheapest/ less costly Maintenanc Reducing It will be more
maintenance service in ASEAN e is very operation costly because we
country critical for al cost need more fund to
safety for support the start
factor, if we maintena the business
choose less nce, the operation
costly effect is
maintenanc we have a
e service, perfect
thus we can plane.
reduce
operational
cost.
 SW Strategies Reasons Pros Cons
Outsource and contracting The Mostly its It depends on the
from another company to strength of cheaper external to maintain
make the cost efficient the to its facility
company outsourc
could make e
up for its
weakness.
Air Asia
have strong
LCC
presence
and market
share.
 ST Strategies Reasons Pros Conas
Keep the LCC strategy The LCC strategy The best Unable/barrier to
(Low price ticket and is what make Air proven target another
efficient supply chain) Asia Strong. LCC strategy segment
was the key to
its well known
brand(everyone
can fly).
Changing or
moving into
another
positioning will
proving fatal
historically like
another
THANK YOU
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