Business Strategy of Airasia Business Strategy Air AsiaCompany BackgroundAir Asia is one of the companies that very successful in adopting the cost leadership strategy as one of their competitive advantages. (Spreading its wings ,2012) 2.5.4 India. The third service marketing mix used by AirAsia to achieve their target market is distribution or place. AirAsia approaches to prevent this occurring and to generate continued growth is to frequently re-assess its strategy so that they build strong businesses in the attractive industries of the future Company overview – Air Asia Berhad AirAsia’s leading airline was … AirAsia is unable to apply this strategy in Mala ysia as there are no secondary airp orts in all the destinations it serves, with the single except ion of the natio nal capital. Competitive Market of Air Industry and Competitive Advantages for Customer Satisfaction through Pricing Strategy of Air-Asia. There is also some opportunity to partner with other low cost airlines as Virgin to tap into their existing strengths or competitive advantages such as brand name, landing rights and landing slots. Especially, competitive strategy should base on and understanding of industry structures and the way they change. It also explains the threats of new entrants and already existing firms. Strategy Our ir-vision To continue to be the lowest cost short-haul airline in every market we serve, delivering strong organic growth through offering the lowest airfares at a profit. Porter, M.E., 2004, Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York Free Press. DOES AIRASIA HAVE A COMPETITIVE EDGE? AirAsia would usually set an extremely low price for flights to new destinations in order to capture a large mass of market share. The current issues in AirAsia Company are more focused in the competition of the cost among an airplane industry. Strategy Organization and Marketing (01QGHPH) Anno Accademico. It is known for its cheap and affordable price to various destinations. General Strategy of AirAsia No-frills, low-fare. The company implemented no-frills, low-fare concept by offering prices that were nearly 50% lower than the prices of the competitors. Airasia has been expanding rapidly ever since and become the leader of low cost airline in Asia and the pioneer of low cost. AirAsia’s fundamental product strategy is based on low-cost services. While such a strategy may help AirAsia onboard new and small restaurants, the question is if it is sustainable enough to retain them. In this case study, AirAsia’s business plan and strategy, sustainability, cost and competitive advantage it has and its management style has been discussed in details. Besides that, AirAsia’s management has a very good strategy by educating their staffs to work hard to fulfil the mission and vision of the company. AirAsia and her leadership have displayed a targeted and definitive strategy since their acquisition of the struggling AirAsia company in the early 2000s. AirAsia has exploited it resources and capabilities, which is reflected in their financial performance. Currently AirAsia is employing a less risky organic growth strategy though Indonesia AirAsia and the presence of the AirASia Group nerve centre AirAsia Asean. Business Strategy of Airasia Business Strategy Air AsiaCompany BackgroundAir Asia is one of the companies that very successful in adopting the cost leadership strategy as one of their competitive advantages. Threats AirAsia’s s net profit for the 3rd quarter of 2009 totalled RM130 million ($38.4 million) which is sustained by rising passenger numbers and income from add-on services. a. AirAsia, being a world class leading low cost airline firm has developed a wide range of strategies and plans to help its customers benefit from quality services. Get traffic statistics, SEO keyword opportunities, audience insights, and competitive analytics for Airasia. Compare AirAsia’s generic strategy (cost leadership, differentiation, focus) with the strategies of other incumbent carriers and with Southwest and Ryanair. Air Asia had been established on 12 december 2001 with Dato Sri TonyFernandez as the CEO. Davies, B. and Ellison, L. (2003). As what the slogan says now everyone can fly which actually attract thecustomers to buy the … The Strategic Analysis of Air Asia, can be done with the help of Michael Porter’s five forces.It describes the internal affection of the industry with elaborating competitive rivalry amongst the firms in the industry to the bargaining power of customers and suppliers. This is about to change in Malaysia, where Air Asia has been transformed by its CEO, Tony Fernandes, and now uses the tag–line quoted in the title above . Resources and capabilities helps to create competence in the market. AirAsia has gradually increased its performance throughout the years. Journal of Applied Sciences Research 9(4), 2505-2512. Air Asia was originally set up in November 1996 by conglomerate DRBHicom. The paper "The Competitive Advantage of AirAsia Strategic Operations Management" discusses the corporate strategic development of AirAsia… Politecnico di Torino. Lecture notes - Case study - Air Asia - Strategy Organization and Marketing Case study. 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. How is it similar to and different from the strategies of those carriers? In simple terms, resources are what you have and capabilities is what you do with those resources. The general strategy of AirAsia is based on the no-frills, low-fare concept. AirAsia Strategic Management 1. 3. The way of their management is rare but still can easily imitate by competitors which lead temporary competitive advantage to AirAsia. The company can be considered as an innovator in the sphere of air traveling in Asia. In particular, the author applies Porter‟s generic strategy especially Low-Cost Leadership strategy to competitive strategy, to argue that AirAsia‟s success that strict with low-cost. This Strategy of AirAsia is hard to imitate and makes them less vulnerable to new entrants. Apart from Virgin Blue in Australia, Asia has yet to produce a genuine low–cost carrier. Commencing in 1996, within fifteen years, AirAsia managed to expand its operations into another ten countries. Currently, AirAsia flies to 12 destinations in Malaysia, using a … Tags: Are AirAsia’s cost advantages imitable by other airlines?Why or why not?, Can AirAsia effectively compete in long-haul air travel given the nature of its existing strategy and the nature of the cost advantages that underpin AirAsia’s existing strategy?, Discuss how AirAsia achieves a cost advantage. Strategic capabilities of AirAsia Berhad ... 2009, Formulation, Implementation & Control of Competitive Strategy, 11th edition McGraw-Hill International Edition. As what the slogan says now everyone can fly which actually attract thecustomers to buy the … It engages in an anchor pricing strategy in its marketing mix, which creates a base for pricing all operations carried under the AirAsia umbrella. Distribution define as strategy of pass the products to the customer, looking at location and where a service is delivered. AirAsia should keep manage linkages which can benefit both firms and in turn their shareholders. These forces determine the intensity of competition and hence the profitability and attractiveness of … Air Asia had been established on 12 december 2001 with Dato Sri TonyFernandez as the CEO. Insegnamento. Airasia continues to expand worldwide through the innovation, efficient, passionate and right strategy. At a basic level this involves the sharing of corporate management functions and certain business services. Thus, AirAsia has a great opportunity to capture some of the existing customers of full service and other low cost airline’s customers. Home > Essays > Competitive Advantages AirAsia. Type Essay Pages 4 pages Word Count 659 words School ... How do you evaluate AirAsia’s strategic direction to enter the long-haul/international . Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps’ and SWOT analysis. • To be able to provide affordable airfares, at the same time promoting Malaysian hospitality and the local food. With the threat of bankruptcy with most airlines in the Asia-Pacific region and globally, merger and acquisitions are becoming prominent to Marketing mix 7 Ps’ and SWOT analysis can improve the brand value of AirAsia and identify the strengths and weaknesses of AirAsia … AirAsia Price/Pricing Strategy: Following is the distribution strategy of AirAsia: AirAsia stands for low pricing and a no frills policy. The global financial crisis and recession has impacted tremendously on the airline industry. MISSION To be the best company to work for whereby employees are treated as part of a big family Create a globally recognized ASEAN brand To attain the lowest cost so that everyone can fly with Air Asia Maintain the highest quality product, embracing technology to reduce cost and enhance service levels AirAsia Also has very good relations with Government which a very rare capability to have. What marketing strategies does Airasia use? Università. flight business? Competitive strategy relates to all the different strategies a company may do to: ... AirAsia’s mission: • A low cost airline carrier that offers five-star service with 95% of on-time performance. This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). The New Strategic Direction and Development of the School: Key Frameworks for School Improvement Planning. Sharing of activities as a corporate strategy focuses on exploiting economies of scope where commonalities exist. This thesis explained in detail the AirAsia‟ strategy and whole operations that keep the cost low through the value chain analysis. Strategic management has played a key role in the success of many business organizations in the world including AirAsia airline. Porter has identified five competitive forces that shape every industry and every market. It also provides facilities to people like they can themselves print their ticket or boarding pass and thus competitors cannot easily copy this strategy of AirAsia. Psychology Press. 2014/2015 competitive advantage. The recent hike in airport tax has let AirASia to suspend flights to certain location such as Delhi, Mumbai. AirAsia’s strategic positioning and competitive advantage within the industry. Competitive Advantage Of Business Strategy 790 Words | 4 Pages.