The organization will give an incentive to those pilots who take for short flight which they can reduce the duration of flights. Tony was inspired by the Low-Cost Carrier business model of Southwest. Power of the suppliers is important as it will affect the industry. By operating the low cost principle, AirAsia Berhad aim to maximize their sales and minimize their operating cost. In conclusion, by using this system effectively, efficiency, customer satisfaction, fast and secure in buying a ticket already met.
Because of this reason, AirAsia need to consider a strategic management as the important things in their company. Rivalry among existing competitors In every industry, there is positive or negative trend to industry growth rate. Therefore, this capability is a short-term sustainable competitive advantage as AirAsia expands, with overdependence on key staff and possible shallow decision-making. As an air operator, Asia concerned is the air worthiness of it airplane. Air Asia Porters Five Forces Model Analysis Threat of Entry There is a high barrier entering airlines industry since it requires high capital to set up everything such as purchase or lease air craft, set up office, and hire staffs. This then enabled many budget airlines to lease their aircraft at a cheaper rate, which resulted in cheaper ticket prices for their customers AirAsia 2009.
Bilateral agreement is one of the obstacles in the way of Asian budget carriers. The reason of the airline industry is a unique and complex industry, not just how to reduce cost and make the operational activities running effectively. The Business Times Singapore, 2013 By the 2013, it owns 117 aircrafts and 87 per cent of them are in a balance which is the highest rate among all the airlines in Asia. References AirAsia 2008, AirAsia wins Airline Strategy Award: Finance Category Real 5 Star carrier gets Real 5 Star honour! AirAsia, Airline, AirTran Airways 1279 Words 5 Pages 1. Furthermore, flyers onboard have a receptive mindset which is due to the fact that they are excited about the new destination that they would be heading to therefore advertising to such a target audience would bring forth more responsive results Leslie n. Its focus on innovation, cost efficiencies, safety, technology and superior quality customer service and employee satisfaction has allowed it to add value to its offerings and activities undertaken in its pursuit of establishing itself as a low-fare, no-frills airline.
In the Asia region, other competitors that dominate the airline industry include Scoot, Jetstar, Tiger Airways and in Malaysia itself, Malaysian Airlines Wassener 2012. Manufacturing planning and control for supply chain management. He is so dedicated towards Claudius that he even spies on the people he cares about most. AirAsia must strive to improve its technology and resources to make safety their number one priority instead of low prices. AirAsia wanted to become a company that worked on the basis of the average man in the street being able to afford our air fares, and people who would not have considered flying, or would not fly as often as they as do now. AirAsia 2008 Use of Secondary Airports AirAsia typically operates from secondary airports which mean that they would benefit from lower parking, landing and ground handling fees. This will affect the operating of human resources in a company.
Another risk would be the fact that if you are using edible crops to produce biofuel, food prices may go up. Flexible Air Schedules AirAsia Berhad increases the frequency of their flight every year to fulfill the needs of passengers. Traffic was up 40% in the fourth quarter, although it did not keep pace with the capacity increase of 44%. Conclusion Air Asia has clearly highlighted how a keen and critical strategic movement may drive a company towards phenomenal success. This saves me time and allows me to accomplish more. A high portion of AirAsia costs was the salaries and benefits for its employees.
This is because, strategic management becomes important in AirAsia due to the following reasons. However, this proved to be an opportunity for budget airlines. His hate for his uncle and the. For example, Shin Corp formerly owned by the family of former Thai Prime Minister - ThaksinShinawatra holds a 50% stake in Thai AirAsia. Faculty of Economics and Commerce University of Melbourne : 3.
Given the chance I would go straight from A to C and would skip the B without a moments' hesitation. Airline, Business terms, Customer service 886 Words 3 Pages AirAsia company analysis AirAsia is the leading low-cost airline company in Asia. These are potential travelers specially with the joint venture already in place. Being able to speak out loud, make friends easily, talk to anyone, anywhere at anytime and not be a dull person is a good quality to withhold because it has helped me in school and eventually will help me in my future career. This is partly contributed by the diverse background of the executive management teams that consists of industry experts and ex-top government officials.
To learn how the companies create strategies and put them into action, the executives or strategists should examine carefully an aspect of strategic management. Although salaries offered to employees were below that of rivals, all employees were offered a wide range of incentives such as productivity and performance-based bonuses, share offers, and stock options. This method is ideal compared to the more expensive ideas that would require mass media for advertising purposes. I love working with people and enjoy the challenge of judging whose skills are best suited to different aspects of the job. In order to sustain its competitive advantage, AirAsia needs to leverage its competency in creating cost advantages across multiple value chains. Many governments have been instrumental in dabbling in the success of airline companies in Asia. The capabilities and core competencies of the firm would be explained in greater detail towards the latter part of the report before a series of analysis would be done to segregate the more influential ones from the rest.