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Quantitative Strategic Planning Matrix (QSPM) For Airasia

The document presents a Quantitative Strategic Planning Matrix (QSPM) analysis for AirAsia to evaluate two potential strategic alternatives: 1) Increasing flight offers and promotions on domestic routes due to border closures during the COVID-19 pandemic, and 2) Diversifying their business operations beyond airline operations. A list of opportunities, threats, strengths, and weaknesses is provided and each factor is given a weight and attractiveness score for the two alternatives. The total attractiveness scores are calculated as 5.33 for alternative 1 and 5.96 for alternative 2. Therefore, the analysis shows that diversifying business operations has the highest score and AirAsia should implement this second strategic alternative to survive the economic crisis from the pandemic.

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1K views

Quantitative Strategic Planning Matrix (QSPM) For Airasia

The document presents a Quantitative Strategic Planning Matrix (QSPM) analysis for AirAsia to evaluate two potential strategic alternatives: 1) Increasing flight offers and promotions on domestic routes due to border closures during the COVID-19 pandemic, and 2) Diversifying their business operations beyond airline operations. A list of opportunities, threats, strengths, and weaknesses is provided and each factor is given a weight and attractiveness score for the two alternatives. The total attractiveness scores are calculated as 5.33 for alternative 1 and 5.96 for alternative 2. Therefore, the analysis shows that diversifying business operations has the highest score and AirAsia should implement this second strategic alternative to survive the economic crisis from the pandemic.

Uploaded by

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

Growth of middle income 0.07 3 0.21 3 0.21


consumers
0.04 3 0.12 4 0.16
Increasing traffic from Asia
0.07 3 0.21 4 0.28
Technological advances in
airlines industries
Ancillary source of revenues in 0.08 2 0.16 3 0.24
the airline industry
0.05 3 0.15 3 0.15
Tourism: One of the world's
fastest growing industry
0.05 3 0.15 4 0.2
Industry shifts
0.06 - - - -
Long haul flights
0.04 3 0.12 3 0.12
Higher fuel costs
0.05 3 0.15 4 0.2
New route expansions
Strategic Alternatives
Key Factors Increase flight offers Diversifying
and promotions business operation

Threats Weight AS TAS AS TAS

0.07 3 0.21 4 0.28


Global pandemic
0.05 - - - -
Alleged corruption and scandal
0.04 3 0.12 3 0.12
Rising fuel costs
0.07 2 0.14 4 0.28
Rising labour costs
0.07 3 0.21 3 0.21
Internet transparency
Rise of other LCC's in the 0.05 2 0.1 2 0.1
market
0.06 3 0.18 4 0.24
Political risk
Accident, terrorist attack and 0.08 3 0.24 4 0.32
natural disaster
Total 1.00 2.47 3.11

Strategic Alternatives
Key Factors Increase flight offers Diversifying
and promotions business operation
Strength Weight AS TAS AS TAS

0.06 3 0.18 4 0.24


Attractive business model - LCC
with lean, simple and efficient
operations
Well established LCC with 0.07 3 0.21 3 0.21
international subsidiaries
0.05 3 0.15 3 0.15
Broad destinations
0.05 3 0.15 - -
Mass fleeting
Strategic Alternatives
Key Factors Increase flight offers Diversifying
and promotions business operation
Strength Weight AS TAS AS TAS

0.06 3 0.18 4 0.24


Strong promoter
0.08 3 0.24 3 0.24
Powerful brand
Up to date with technology and 0.05 3 0.15 4 0.2
innovation
0.06 3 0.18 3 0.18
Outstanding stakeholders
0.07 2 0.14 3 0.21
Strong financial performance
0.07 3 0.21 3 0.21
Good return on ancillary sales
Weaknesses

0.07 2 0.14 - -

No heavy maintenance facility


0.07 3 0.21 3 0.21
Challenge in balancing service
quality with pricing
0.05 3 0.15 2 0.1

Difficult in sustaining costs


0.04 3 0.12 3 0.12
Less routes provided as compared to
market leaders in Asia
0.04 3 0.12 4 0.16

Stiff competition in its sector


0.05 3 0.15 4 0.2

Difficult in retaining loyalty


0.06 3 0.18 3 0.18
No government intervention on the
regulation of airport deals
Strategic Alternatives
Key Factors Increase flight offers Diversifying
and promotions business operation
Total 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 COVID-

19.

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