Thus, in order to expand, Air Asia has to steal the market share from its competitors. With more and more experts visual aspect in Asia, rivals in the field of air hose are able to contrive new things to cut down cost to win in the conflict, if AirAsia wants win eventually, the key is to ask for more professional experts to fall in them.
To make up for revenue lost in decreased ticket prices, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc. With an increasing fleet this is a competitive disadvantage.
HafsahBinti Ahmad Submission Date: The low cost model works best on short-haul point-to-point traffic with high frequencies. Recognizing that price and convenience are most important to their target audience, Air Asia achieved cost leadership through innovative strategies such as single class services and lower fares without preferable seats, meals, entertainment and other utilities.
Technology AirAsia provides online service that combines air ticketing with hotel bookings, car hire and travel insurance.
But when a company already established creates its own low cost firm, the key inputs are not a problem anymore. While the analysis of the current mission statement of AirAsia is includes in the Appendix Exhibit 2.
AirAsia gain cost advantage in this category by utilizing just one kind of aircraft. Moreover Air Asia ordered large amountsfrom Airbus in order to expand its routes to international routes.
Economically, the current global crisis has affected Asia less severely than the West so far. This creates a larger market and a huge opportunity for all low cost airlines in this region including AirAsia.
To enter this industry not only is requiredhigh capital but also brand image. Travelling from, for example, Jakarta to Kuala Lumpur would be a time-consuming exercise.
The company favors the employees by giving them incentives and in return demands for staff loyalty and credibility. Simple Products A typical low cost airlines product is extremely basic. For example, Singapore Airlines has created a low cost carrier Tiger Airways.
Hopefully Air Asia has always been close to the governments in South Asia. This is managed by the company by searching for cost reduction areas continuously including its value chain. This is one challenge that may affect AirAsia negatively and may lead to losses.
Customer Focused They care and treat everyone in the same manner that they want to be treated.
Buyer power is reasonably high because potential customers have access to price information through the internet and mobile technology; thus, they can find cheaper prices easier. If this was not a problem before when they only startedin Malaysia, now with three hubs and an important fleet of aircraft, it might be too expensive.
With their effective sales and marketing strategy, Air Asia can simply beat their competitors in airlines industry. Opportunity is the golden word where AirAsia is concerned.
Essay The new mission statement that created to AirAsia is brief and memorable, in other words it is easy to understand by most of the mark audience. Bilateral agreement is one of the obstacles in the way of Asian budget carriers.
Alternatively of offering high and attractive wage to its rivals, AirAsia urge its ain policy which are more motivated. The organizational structure of AirAsia has no ranks and there are no levels of hierarchy observed in the company.
Air Asia introduce the value-added services which is to provide ticketless travel and implement a free seating policy. Some Navitaire key functions that have helped AirAsia leverage on IT for its business model: 1) Navitaire operation management systems help AirAsia plan, schedule, tracks, measure and report on operations for aircraft and crew, from initial plan to day-of flight.
Executive sum-up The current state of affairs of Air market is non steady and could fulfill demands of clients, more and more negative intelligence appear to demo depression of AirAsia.
AirAsia is a Malaysian-based company which owns air hoses in Asia with low cost and supply flight lines over 25 states, the AirAsia. Essay on 7s Airasia Words | 3 Pages.
values The common shared value of AirAsia is to be the largest low cost airline in Asia by continually insisting on the development of the low-cost carrier model. Abstract This report consists of an internal and external analysis of AirAsia using various methods including a PEST, Organization analysis, SWOT analysis and Porter’s 5 forces model.
The main outcomes of the report are: Conclusions reached: Recommendations reached: 2. The AirAsia opted for various cost-effective, customer-oriented and highly innovative strategies to shape its business model to reach its ultimate missions and objectives.
With its innovative low-fare, no-frills concept it highly reduced the cost of air ticket such as by having just a single standard cabin, paid meals instead of pre-paid free meals, etc. We will write a custom essay sample on The Vision And Mission Of Airasia Business Essay specifically for you for only $ $/page.
Order now As reference earlier, developing a vision statement is a cardinal to direct a company and to assist procure the company ‘s hereafter.Airasia business model essays for composition