Distribution define as strategy of pass the products to the customer, looking at location and where a service is delivered. The way of their management is rare but still can easily imitate by competitors which lead temporary competitive advantage to AirAsia. AirAsia Strategic Management 1. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps’ and SWOT analysis. Strategic capabilities of AirAsia Berhad ... 2009, Formulation, Implementation & Control of Competitive Strategy, 11th edition McGraw-Hill International Edition. AirAsia should keep manage linkages which can benefit both firms and in turn their shareholders. AirAsia has exploited it resources and capabilities, which is reflected in their financial performance. AirAsia’s strategic positioning and competitive advantage within the industry. How is it similar to and different from the strategies of those carriers? It engages in an anchor pricing strategy in its marketing mix, which creates a base for pricing all operations carried under the AirAsia umbrella. As what the slogan says now everyone can fly which actually attract thecustomers to buy the … AirAsia Also has very good relations with Government which a very rare capability to have. Thus, AirAsia has a great opportunity to capture some of the existing customers of full service and other low cost airline’s customers. Journal of Applied Sciences Research 9(4), 2505-2512. The New Strategic Direction and Development of the School: Key Frameworks for School Improvement Planning. While such a strategy may help AirAsia onboard new and small restaurants, the question is if it is sustainable enough to retain them. 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. 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. At a basic level this involves the sharing of corporate management functions and certain business services. Strategic management has played a key role in the success of many business organizations in the world including AirAsia airline. With the threat of bankruptcy with most airlines in the Asia-Pacific region and globally, merger and acquisitions are becoming prominent to Apart from Virgin Blue in Australia, Asia has yet to produce a genuine low–cost carrier. The current issues in AirAsia Company are more focused in the competition of the cost among an airplane industry. Resources and capabilities helps to create competence in the market. 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. It also explains the threats of new entrants and already existing firms. General Strategy of AirAsia No-frills, low-fare. flight business? 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. AirAsia Price/Pricing Strategy: Following is the distribution strategy of AirAsia: AirAsia stands for low pricing and a no frills policy. Porter, M.E., 2004, Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York Free Press. Airasia continues to expand worldwide through the innovation, efficient, passionate and right strategy. The company can be considered as an innovator in the sphere of air traveling in Asia. Porter has identified five competitive forces that shape every industry and every market. 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. Type Essay Pages 4 pages Word Count 659 words School ... How do you evaluate AirAsia’s strategic direction to enter the long-haul/international . Competitive Market of Air Industry and Competitive Advantages for Customer Satisfaction through Pricing Strategy of Air-Asia. It is known for its cheap and affordable price to various destinations. Currently, AirAsia flies to 12 destinations in Malaysia, using a … 3. Commencing in 1996, within fifteen years, AirAsia managed to expand its operations into another ten countries. 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. a. 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. Airasia has been expanding rapidly ever since and become the leader of low cost airline in Asia and the pioneer of low cost. AirAsia and her leadership have displayed a targeted and definitive strategy since their acquisition of the struggling AirAsia company in the early 2000s. The recent hike in airport tax has let AirASia to suspend flights to certain location such as Delhi, Mumbai. 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. Insegnamento. 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. As what the slogan says now everyone can fly which actually attract thecustomers to buy the … Air Asia had been established on 12 december 2001 with Dato Sri TonyFernandez as the CEO. 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). In simple terms, resources are what you have and capabilities is what you do with those resources. Compare AirAsia’s generic strategy (cost leadership, differentiation, focus) with the strategies of other incumbent carriers and with Southwest and Ryanair. Marketing mix 7 Ps’ and SWOT analysis can improve the brand value of AirAsia and identify the strengths and weaknesses of AirAsia … 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. Air Asia was originally set up in November 1996 by conglomerate DRBHicom. 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 What marketing strategies does Airasia use? Especially, competitive strategy should base on and understanding of industry structures and the way they change. 2014/2015 Get traffic statistics, SEO keyword opportunities, audience insights, and competitive analytics for Airasia. Lecture notes - Case study - Air Asia - Strategy Organization and Marketing Case study. This Strategy of AirAsia is hard to imitate and makes them less vulnerable to new entrants. AirAsia’s fundamental product strategy is based on low-cost services. Currently AirAsia is employing a less risky organic growth strategy though Indonesia AirAsia and the presence of the AirASia Group nerve centre AirAsia Asean. Threats AirAsia would usually set an extremely low price for flights to new destinations in order to capture a large mass of market share. competitive advantage. Home > Essays > Competitive Advantages AirAsia. • To be able to provide affordable airfares, at the same time promoting Malaysian hospitality and the local food. Università. The third service marketing mix used by AirAsia to achieve their target market is distribution or place. DOES AIRASIA HAVE A COMPETITIVE EDGE? The company implemented no-frills, low-fare concept by offering prices that were nearly 50% lower than the prices of the competitors. Politecnico di Torino. 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. 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. These forces determine the intensity of competition and hence the profitability and attractiveness of … (Spreading its wings ,2012) 2.5.4 India. 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. Air Asia had been established on 12 december 2001 with Dato Sri TonyFernandez as the CEO. Psychology Press. 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. 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 … The paper "The Competitive Advantage of AirAsia Strategic Operations Management" discusses the corporate strategic development of AirAsia… Strategy Organization and Marketing (01QGHPH) Anno Accademico. Competitive Advantage Of Business Strategy 790 Words | 4 Pages. The global financial crisis and recession has impacted tremendously on the airline industry. 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. This thesis explained in detail the AirAsia‟ strategy and whole operations that keep the cost low through the value chain analysis. Sharing of activities as a corporate strategy focuses on exploiting economies of scope where commonalities exist. The general strategy of AirAsia is based on the no-frills, low-fare concept. 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 . AirAsia has gradually increased its performance throughout the years. Davies, B. and Ellison, L. (2003).