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QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) FOR AIRASIA Current situation AirAsia best strategic alternatives being choose is increase flight offer and promotions especially for Domestic route due to all international border being closed due to Pandemic COVID-19. Second strategic alternatives being choose is diversifying their business operation not just focus to airlines industry. Nowadays AirAsia ecosystem comprises the Group’s core airline network operations, travel and lifestyle commerce platform, financial and insurance services, logistics services, as well as lifestyle & entertainment affiliate. Below are the QSPM for Airasia Strategic Alternatives Key Factors
Increase flight offers
Diversifying
and promotions
business operation
Weight
AS
TAS
AS
TAS
0.07
3
0.21
3
0.21
0.04
3
0.12
4
0.16
0.07
3
0.21
4
0.28
Ancillary source of revenues in the airline industry
0.08
2
0.16
3
0.24
Tourism: One of the world's fastest growing industry
0.05
3
0.15
3
0.15
0.05
3
0.15
4
0.2
0.06
-
-
-
-
0.04
3
0.12
3
0.12
0.05
3
0.15
4
0.2
Opportunities Growth of consumers
middle
income
Increasing traffic from Asia Technological advances airlines industries
in
Industry shifts Long haul flights Higher fuel costs New route expansions
Strategic Alternatives Key Factors
Threats
Increase flight offers
Diversifying
and promotions
business operation
Weight
AS
TAS
AS
TAS
0.07
3
0.21
4
0.28
0.05
-
-
-
-
0.04
3
0.12
3
0.12
0.07
2
0.14
4
0.28
0.07
3
0.21
3
0.21
0.05
2
0.1
2
0.1
0.06
3
0.18
4
0.24
0.08
3
0.24
4
0.32
Global pandemic Alleged corruption and scandal Rising fuel costs Rising labour costs Internet transparency Rise of other LCC's in the market Political risk Accident, terrorist attack and natural disaster Total
1.00
2.47
3.11
Strategic Alternatives Key Factors
Strength Attractive business model - LCC with lean, simple and efficient operations Well established LCC international subsidiaries
with
Increase flight offers
Diversifying
and promotions
business operation
Weight
AS
TAS
AS
TAS
0.06
3
0.18
4
0.24
0.07
3
0.21
3
0.21
0.05
3
0.15
3
0.15
0.05
3
0.15
-
-
Broad destinations Mass fleeting
Strategic Alternatives Key Factors
Strength
Increase flight offers
Diversifying
and promotions
business operation
Weight
AS
TAS
AS
TAS
0.06
3
0.18
4
0.24
0.08
3
0.24
3
0.24
0.05
3
0.15
4
0.2
0.06
3
0.18
3
0.18
0.07
2
0.14
3
0.21
0.07
3
0.21
3
0.21
0.07
2
0.14
-
-
0.07
3
0.21
3
0.21
0.05
3
0.15
2
0.1
0.04
3
0.12
3
0.12
0.04
3
0.12
4
0.16
0.05
3
0.15
4
0.2
0.06
3
0.18
3
0.18
Strong promoter Powerful brand Up to date with technology and innovation Outstanding stakeholders Strong financial performance Good return on ancillary sales Weaknesses
No heavy maintenance facility Challenge in balancing quality with pricing
service
Difficult in sustaining costs Less routes provided as compared to market leaders in Asia
Stiff competition in its sector
Difficult in retaining loyalty No government intervention on the regulation of airport deals
Strategic Alternatives Key Factors
Total
Increase flight offers
Diversifying
and promotions
business operation
1.00
2.86
2.85
AS = (Attractiveness Scores); TAS = (Total Attractiveness Scores) Attractiveness Scores is 1 = not attractive, 2 = somewhat attractive, 3 = reasonably attractive, and 4 = highly attractive. Therefore TAS for Strategic 1, Increase flight offers and promotion = 2.47+2.86 =5.33 Strategic 2, Diversifying business operation = 3.11+2.85 =5.96 Thus, analysis show that diversifying business operation for AirAsia had highest score about 5.96 of TAS and in others word AirAsia should implement this alternatives strategy No.2 to survive in this economic crisis due to Pandemic COVID19.
