Tangible and intangible resources of air asia

With the execution of this strategy, AirAsia was able to counter competitive entry, maintain the company's reputation as a product innovator, exploit new technology, and to protect overall market share David, In other words, AirAsia can expect to face stiff competition in time to come even though market participants understand that price war is destructive and thus will try to avoid any direct price competition.

However, the consistent growth and the expanding route network of AirAsia over the years, indicates the bargaining power of buyers to be moderate. An in-depth analysis using a wide array of academic resources, relevant financial, legal and management resources and authorized websites, including face-to-face interviews were used to provide a more consequential comprehension on the varied business and international strategies that were implemented by AirAsia Berhad. The introduction of widely available low air fares in Southeast Asia greatly reduces the cost barrier to air travel and creates a competitive transport substitute for the ASEAN population. Eliminate defects. Additionally, it creates a platform to ensure the brand image of the group remains relevant through its website and varied social media networks. II — Statement of the Problem Finding a way to develop and to improve the capacity of the air Asia, and At 29 U. Communications Program Employee stock ownership. However, there is a strong degree of rivalry in this industry. To ensure the safety standards of all aircrafts are maintained. Enhance IT tools for marketing and IT functions.

A standard configuration has only seats. On 2 AprilMAL took to the skies with its first commercial flight as the national airline. Like all other LCCs, AirAsia also positions itself as an airline that provides short-route ferry for non-business and price-conscious business passengers as shown in Diagram 2.

air asia strategic

Of late, projections by economists had placed Asia at the top of global economy growth charts in the coming years. Additionally, the international strategies that were implemented exhibit the foresight of the airline.

Technological Change i. AirAsia implemented flexible work rules and streamlined administrative functions which allowed employees to perform multiple roles.

what are the sources of airasia?s cost advantage?

Efficiency creates savings that are then passed on to guests so that affordable air travel can become a reality. With in seven months of operation they all repaid all its debts.

Air asia case study

This is partly contributed by the diverse background of With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. This will then increase the shareholders wealth and company value in the long term. Furthermore, exit barriers are high in this industry, as divestment of specialised assets would be required, as implemented by Malaysian Airlines in its Business Turnaround Plan in This may prove to be enticing for new LCCs to penetrate the market. The effective firm strategy and efficient industry structure are the key market driver for the aviation industry as it is driven by the economic growth within the Asian region. Physical - Operated a large fleet of Boeing aircraft Resources - Continued to invest heavily in acquiring more fuel-efficient aircraft so that the company has sufficient capacity to meet the growing needs and demands of their customers while continue to keep costs low. Zero accidents. For instance, although Thai AirAsia managed to launch its services between Singapore and Individual Assignment 2 Page 16 of 31 BUS Strategy - T01 Thailand in successfully, the company still could not expand beyond the Singapore- Thailand routes because it could not acquire landing rights elsewhere. The company also strives to maintain good relationship with other suppliers that provide aircraft maintenance and airport services. Their tangible and intangible resources are also comparable to that of AirAsia. Although the diversification strategy involves venturing into unknown territories and parameters for an organization, the risks of diversification can be minimised by moving into related markets Ansoff, as executed by AirAsia. AirAsia operates a single-class service with no amenities such as complimentary in-flight meals and entertainment, loyalty programs and airport lounges. For instance, although the company operates aircraft that were built by Boeing, it also acquired the new A aircraft from Airbus.
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(PPT) AirAsia: The World’s Lowest Cost Airline