Porter’s Five Forces Threat of new Entrants Threat of new entry is moderate, because it requires high capital to support and government barrier is high such as the air service agreement can build barriers to those new entrants. The degree of barriers to entry depends on the strength of:- • Customers have a little bit of brand loyalty. If customers of AirAsia do not have brand loyalty, then the threat of new entrants will be very high. But the higher numbers of competitors in the industry also
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Porter's 5 forces analysis on Air Asia Porter's 5 forces analysis on Air Asia Threat of new Entrants The extent of barriers to entry depends on the strength of: Customer has little brand loyalty. If consumers of Air Asia do not have brand loyalty, then the strength of the threat of new entrants is very high. The high numbers of competitors in the industry also decrease Air Asia customer loyalty. Most of the travelers prefer low cost. New competitors which want to come in the industry have
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Porter’s Five Force Model Industry competitors - Local competitors are Air Asia, Firefly, etc - International competitors- Singapore airlines, Garuda, Cathay Pacific, Thai International Airways - Other Low cost Airlines- Compass, Tiger Airways, Cebu Pacific, Jetstar Asia Airways, Impulse, Virgin blue Airlines. The number of competitors is very high and with the emergence of low cost carrier and deregulation the internal competition has increased and the only reason that
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Porter Five Forces of Air Asia Porter’s Five Forces Threat of new Entrants Threat of new entry is moderate, because it requires high capital to support and government barrier is high such as the air service agreement can build barriers to those new entrants. The degree of barriers to entry depends on the strength of:- • Customers have a little bit of brand loyalty. If customers of AirAsia do not have brand loyalty, then the threat of new entrants will be very high. But the higher numbers
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Porter Five Forces Of Air Asia Porter’s Five Forces Threat of new Entrants Threat of new entry is moderate, because it requires high capital to support and government barrier is high such as the air service agreement can build barriers to those new entrants. The degree of barriers to entry depends on the strength of:- • Customers have a little bit of brand loyalty. If customers of AirAsia do not have brand loyalty, then the threat of new entrants will be very high. But the higher
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two aircrafts operating to one destination with 250 staff (AirAsia 2015a) into the number one LCC operating in Asia. Today it operates on 132 routes, connecting 65 destinations in 18 countries with over 8,000 staff (AirAsia 2015b). The group services almost 12 million passengers per year with 171 aircrafts (AirAsia 2015c). This report provides a comprehensive strategy analysis of Air Asia. First the mission, vision and core values of AirAsia are presented. Next the external environment of the company
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5 2.0 General Environment Analysis 9 2.1 Politic Factors 9 2.2 Economic Factors 10 2.3 Social Factors 10 2.4 Technology Factors 11 2.5 Legal Factors 11 2.6 Environmental Factors 12 3.0 Task Environment Factor 13 3.1 Porter Five Forces Analysis 13 3.1.1 The Threat of the Entry of New Competitors 13 3.1.2 The Threat of Substitute Products or Services 13 3.1.3 The Bargaining Power of Customers 14 3.1.4 The Bargaining Power of Suppliers 14 3.1.5 The Intensity of
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Introduction Business SegmentsFedEx ExpressFedEx GroundFedEx FreightFedEx ServicesCorporate Strategy“Compete Collectively, Manage Collaboratively” • 3. Brand Planning AssessmentThe FedEx PositionWho is the target market?“anyone who needs to send something anywhere in the world. Whether it’s the one and only package you'll ever ship in your life or you have 1000 packages to ship every day.” • 4. Brand Planning AssessmentThe FedEx PositionWho are the main competitors?UPS • 5
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defend against the five competitive forces. Such protected from powerful customers and suppliers, because customers cannot find lower prices elsewhere, and other buyer or potential new entrants occur, surely get more market share. Also acts as a barrier against new entrants and products. 2) Porter’s Competitive Forces and Strategies Porter M. E. proposed that business-level strategies are the result of five competitive forces in the company’s environment. Five Competitive Forces: a) Potential
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summary Air Asia Airline is one of the companies that once facing a critical financial crisis situation within the organisation. However Air Asia has successfully overcome this problem and expand this nearly bankrupt organisation to become million valued company within a short period of time. Air Asia only used 4 years times to change from a heavily debt organisation and become a high profit company that earn a net profit of RM112 million during 2004 (Air Asia 2005). This has illustrate that Air Asia
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