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Space Matrix Airaisa

This document analyzes Airasia using the SPACE matrix, a management tool. [1] It rates Airasia's financial position, competitive position, industry position, and stability position on scales of 1-7 or -7 to -1. [2] The results show Airasia has a coordinate of (4,2.21), indicating it is in a high growth industry with a fair financial position. [3] In summary, the SPACE matrix analysis finds that while Airasia faces some challenges, overall it is well-positioned for growth in its industry.

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2K views7 pages

Space Matrix Airaisa

This document analyzes Airasia using the SPACE matrix, a management tool. [1] It rates Airasia's financial position, competitive position, industry position, and stability position on scales of 1-7 or -7 to -1. [2] The results show Airasia has a coordinate of (4,2.21), indicating it is in a high growth industry with a fair financial position. [3] In summary, the SPACE matrix analysis finds that while Airasia faces some challenges, overall it is well-positioned for growth in its industry.

Uploaded by

malikldu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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3.

1 SPACE MATRIX

The SPACE matrix is a management tool used to analyze a company. It is used to

determine what type of a strategy a company should undertake. Below are SPACE

Matrix for Airasia.

NO INTERNAL ANALYSIS RATING


+1 (WORST) TO +7
(EXCELLENT)
FINANCIAL POSSITION (FP)

Return on investment

Airasia had explore new routes for their long-

1 haul flights. They fly Exclusively to Japan, 6

Northern China, Northern India, South Korea,

Saudi Arabia and Australia

Leverage

Launched Bigpay in 2018, which aim to

democratize financial services in Asia by


2 5
building a digital bank that offers consumers e-

wallet service,

remittance and lending

Liquidity

COVID-19 had give major impact to Airasia

operation. They have take action to sell 10 per


3 4
cent of the company's shares to SK Corp, South

Korea''s third largest conglomerate


NO INTERNAL ANALYSIS RATING
+1 (WORST) TO +7
(EXCELLENT)
Capital required/capital available

Group Airasia Bhd had presented with

proposals from a number of investment bankers,


4 5
lenders, as well as potential investors to help

the company weather the storm caused by the

COVID-19 pandemic.

Cash flow

Airasia continues to generate strong cash flow,


5 4
reflected by the positive operating cash flow

(post operating lease) before COVID -19 occurs

Ease of exit from market

Cost-efficiency, low complexity and profitability

are always the cornerstones of building a strong


6 4
business. Besides restructure Airaisa operation

during COVID -19 impact had its maintain in the

Airlines industry

Risk involved in business

Airasia have diversify his business such as


7 5
Hotel,telecomunication ,and financial (bigpay)

had reduced its risks

Total 33

Average 4.71
NO INTERNAL ANALYSIS RATING
-7 (WORST) TO -1
(EXCELLENT)
Competitive Position (CP)

Market share

AirAsia.com as a all-in-one travel and lifestyle


1 -3
marketplace. Airasia estimate had ~10%

market share of the online travel space.

Service quality
2 -4
AirAsia have been rated by skytrak for 3 stars

Product Life Cycle

AirAsia is in the growth phase position of Product

3 Life Cycle (PLC) stage. AirAsia products and -3

services can be taken up by the customer base

very quickly and achieve rapid growth.

Customer loyalty

AirAsia big loyalty the award-winning loyalty


4 -2
programme which allow members to redeem

AirAsia flights to over 150 destinations

Competitor's capacity utilization

The largest Low cost carrier (LCC) in Asia The

5 fourth largest airline in Asia and leader to make -2

air travel the most simple, convenient and

inexpensive form of transportation in the world.


NO INTERNAL ANALYSIS RATING
-7 (WORST) TO -1
(EXCELLENT)
Technological

Introduces AirAsia.com - All-in One Travel and


6 -2
Lifestyle Marketplace. New enhanced

homepage UX/UI on web & mobile

Total -16

Average -2.67

NO EXTERNAL ANALYSIS RATING


-7 (WORST) TO -1
(EXCELLENT)
Stability Position (SP)

Technological changes

Wide digital reach via AirAsia.com, mobile app

1 and social media. Achievement Over 560 million -2

annual unique (web&app) visitors and Over 40

million mobile app download

Price range of competing products

Competitors from other LCC airlines such as


2 -3
Malindo Air,Tiger Airways

Barriers into entry to market

Improved performance by Philippines’ AirAsia


3 -2
(PAA) & Indonesia AirAsia (IAA)
NO EXTERNAL ANALYSIS RATING
-7 (WORST) TO -1
(EXCELLENT)
Demand variability

4 Growth planning in Market,Logistic,Digital Bank -3

and insurance, and Life style & Entertainment

Total -10

Average -2.5

NO EXTERNAL ANALYSIS RATING


+1 (WORST) TO +7
(EXCELLENT)
Industry Position (IP)

Growth potential

1 Opportunity to expand their services by adding 5

new routes

Resource utilization

2 Lower than budgeted fuel price giving some 3

cushion

Financial stability

Stringent cost control internally. Hiring freeze for

the airline business. No extending expiring leased


3 4
aircraft. Discussing with lessors on lease

reductions. Negotiating lower fees with

maintenance service providers.

Profit potential
4 4
Domestic campaign of which resulted in
NO EXTERNAL ANALYSIS RATING
+1 (WORST) TO +7
(EXCELLENT)
30% incremental revenue and 30% discount

promotion across the network.

Barriers of entry into market

Undertaking proactive mitigating actions to limit

5 downside impact from Covid-19. They have 3

actively managed their capacity for Airsia

Philipenes and Airasia Indonesia

Technological

Expand their market thru upgrading their Data to


6 5
drive ecosystem expansion BIG Data and Real-

time Insights

Total 24

Average 4

Therefore for

x-axis: Competitive Position (CP) + Industry Position (IP)

= -2.67 + 4

= 4

y- axis: Stability Position (SP) + Financial Position (FP)

= -2.5 + 4.71

= 2.21
Thus Coordinate is (4,2.21)

The SPACE MATRIX for Airasia

From this Space matrix can conclude that AirAsia is high growth industry with fair

financial position.

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