Advantages of air asia

Jenis pesawat air asia

While market conditions should improve at least slightly some competitors are likely to continue to respond aggressively. In total, electronic commerce is minimizing the expense and cumbersomeness, improved products, and higher profitability [15]. Higher fuel prices could change the economics of routes that are now profitable. Hence, the airline was able to penetrate and stimulate potential markets by maximizing media coverage: brand awareness promotion without incurring high sales and marketing expenses. Furthermore, the other system that AirAsia implemented is customer reservation system CRS ; it is an integrated web-based reservation and inventory system. To be a leader in the low cost carrier, firstly, AirAsia need to consider about their strategic management. To be successful in the company management, a company needs to consider the company ability and how to integrating it with the as well as main factor in the internal and external factor.

As a rough benchmark, five years ago when oil was priced around USD70 per barrel, AirAsia X not only operated European services with the fuel-hungry Abut was also planning service to the US west coast.

Malaysian government support The Malaysian government supported the establishment of AirAsia in to help boost the under-used Kuala Lumpur International Airport.

Web air asia

The globalization consideration impacts virtually all-strategic decisions in a company. They also have, during the past two years, worked to improve operational efficiency, slashing unprofitable domestic routes, increasing flights on busy routes, strengthening yield management and controlling costs. The capability to utilize information technology, and other distribution channels e. However, there will be also some reduction in overall travel especially by casual or budget travelers. Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management, because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their business. Any shorter route can only be pursued with permission from AirAsia. This creates a larger market and a huge opportunity for all low cost airlines in this region including AirAsia. It means the lowest cost can possibly achieve. Therefore, this is a valuable, rare, non-substitutable capability and difficult to imitate by competitors , which creates sustainable cost competitive advantage for AirAsia. It includes Internet; call center, airport departure control and more.

However, it cannot be the cost leader if it offers customized features or comprehensive support which will result in increasing operational cost. Analysing the external environment particularly the industry is a starting point for firms to develop a strategy.

Airasia cost structure

However, AirAsia had some advantages over its competitors by the advantage of experience and its brand enjoyed good recognition. From 3 routes in Malaysia in early , AirAsia quickly expanded its route network in Malaysia, covering all major destinations in Malaysia by end of Moreover, the strategic management becoming important due to the following reason is because the rapid development in E-Commerce. As a rough benchmark, five years ago when oil was priced around USD70 per barrel, AirAsia X not only operated European services with the fuel-hungry A , but was also planning service to the US west coast. By implementing this package AirAsia is looking to successfully maintain process integrity, reduce financial month-end closing processing times, and speed up reporting and data retrieval processes, Microsoft Malaysia [19]. The underpinning of strategic management hinge upon managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders, and customers worldwide. Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management, because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their business. However, Singapore quickly quashed that idea. Porter, M. LCC business is viable and there is healthy profitability provided AirAsia continuously improves itself and is flexible in the challenging market. In late , AirAsia was re-launched in Malaysia as a trendy, no-frills operation with three B aircraft as a low-fare, low-cost domestic airline. In airline industry nowadays, customer not only looks at the service that airline company offered to them, but the price of the airline ticket also can influencing the customer to use an airline company. Furthermore, based on the environmental scanning performed, the demand for low cost carrier LCC industry will keep growing rapidly. There is some overlapping ownership and there are synergies which clearly benefit both companies. Operational savings point-to-point services and uniform fleet 3.

The population of Asian middle class will be reaching almost million by Combining the load factor benefit and beneficial distribution cost, low cost airline's cost per passenger can reduce price by one-third of conventional airline.

Furthermore, the other system that AirAsia implemented is customer reservation system CRS ; it is an integrated web-based reservation and inventory system.

Consequently there is not much competition in terms of pricing occurring between the two companies so an airline carrier will have to accept an offer from one of the suppliers.

cost leadership strategy airline industry

However, focus on a specific customer may avoid straddling. From the view of managers in a company, the emphasis is on the word planning; ERP represents a comprehensive software approach to support decisions concurrent with planning and controlling the business [18].

In addition, AirAsia business strategy also centered on cost leadership. This is partly contributed by the diverse background of the executive management teams that consists of industry experts and ex-top government officials.

airasia destinations

The achievement that AirAsia received in on the last awards and recognition is the best low cost airline in the world.

Rated 5/10 based on 21 review
Download
Competitive Advantage of Air Asia