Brand Air Asia Berhad has managed to provide aviation services to the undeserved masses belonging to the middle income group segment. Maintaining the low pricing strategy and reducing the total travel time The cost effectiveness and the affordable pricing structure offered by the Air Asia Berhad have attracted several customers to the brand. AirAsia has the advantage of being first-to-market, which gives it an edge overcompetition in terms of brand image, customer loyalty, and government support. Joel Ross and Michael Kami Nowadays, the competition among airplane industries is very tough. Furthermore, the second reason why AirAsia need to consider a strategic management because in a company nowadays, general management which is the process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling may not sufficient and supportive for the organization succeed in the world of complex environments.
However, airline accidents and the liquidation of major airline carriers has countered this monopolisation. According to Johnston , without the protection of national airlines brought about by deregulation, building alliances as strategy became necessary for many airlines to stay competitive and gain access to a global market too huge for any existing airline to dominate. But, AirAsia needs to come out with the strategy that can make competitive position that the company performs different activities from rivals or performing similar activities in different ways to achieve their business successfully, the third reason because a globalization and implementing E-commerce. According to this Matrix there are four possible combinations that provide the organizations with possible progressive opportunities. The organization managed to improve its service levels and product quality still offering competitive rates in the existing market.
Bargaining power of the suppliers. AirAsia builds and sustains its competitive advantage by providing services at a price that simply lower than competitors price. It has put additional competitive pressures on players such as Airasia Asia. Joel Ross and Michael Kami Nowadays, the competition among airplane industries is very tough.
Good customer service xase management is critical especially when competition is getting intense. The cost leadership in AirAsia Company is already approving because AirAsia more focused and concentrated in the lowest cost carrier in airplane industries.
(PDF) The ascendance of Air Asia | nik Bomen –
MIT Press, L. Act — Air Asia also manages to reach to its target Sfudy through its interactive website and leading social media platforms. Introducing loyalty programs may increase the brand loyal customers. Whatlessons can be sdot from the North American and European experience?
Rail and Road Transport are attractive substitutes available for domestic Air travel in the Asian countries. According to Pultorakwhen the business strategy and IT are aligned, the IT infrastructure can continuously sense the changing business needs and respond by provisioning or redeploying resources to match the demands of the business.
Airasia Strategic Management Report
This can be accomplished through ccase motivating goals so that AirAsia can be perceived as a contributor to the nationaleconomy, rather than a destroyer of the established carriers.
Try to substantiate the strengths, weaknesses as objectively as possible in terms of what the Airasia Asia does, how it does it, and where are there scope of improvements. Furthermore, according to Daniel Chanthe airline industry is a unique and fascinating industry.
This would include their brand name, landing rights and land timings. Threat of the Substitutes.
This section will discusses the importance of developed and consider strategic management in AirAsia Company, and identify of current issues in AirAsia Company. In total, electronic commerce is minimizing the expense and cumbersomeness, improved products, and higher profitability. This creates a larger market and a huge opportunity for all low cost airlines in this region including AirAsia.
Case Analysis: Air Asia Berhad–126903
It includes Internet; call center, airport departure control and more. The workforce is very flexible and high committed and very critical in making AirAsia the lowest cost airline in Asia. Recommendations for Air Asia Berhad to go through turbulent times ahead of hyper competitiveness in the airline industry.
It is important to note that the Asian markets are substantially more sensitive to fare differentials than the North American market due to the competition from high speed rail.
Firstly, it is the ever increasing oil prices. However, there will be also some reduction caee overall travel especially by casual or budget travellers.
Solved SWOT: Now Everybody Can Fly: AirAsia SWOT Analysis / Matrix
It has managed to hold a leadership position airasi the low cost Airlines industry in Asia. Without the right strategic management, its possible AirAsia could not be able be compete with the complex business environment in the airline industry.
The increase in the Air traffic is resulting in the major congestion at several leading Airports across Asia. Krisflyer, Jetstar and Tiger Airways makes competition very vigorous around the region.
In total, electronic commerce is minimizing the expense and cumbersomeness, improved products, and higher profitability. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals medical tourismCitibank AirAsia Citibank card has created swog very unique image among travellers.
Efficiency creates savings that are then passed on to guests so that affordable air travel can become a reality. It must be cost-efficient and profitable, and it must create value. The cost that they have to running there must be efficient and reliable.
With the help of AirAsia Academy, AirAsia has successfully created a workforce which is veryflexible and high committed and very critical in making AirAsia the lowest cost airline in Asia. The strategy that AirAsia was implementing to make they are being a successful in low cost carrier and can compete with other competitors in this field of business are: