Established on 12 December , AirAsia has been such a big phenomenon in airline industry especially in Asia. The decision in outsourcing has several benefits such as cost, competency, control, and also competitive advantage. The lengthy process for obtaining the operating license for the aircraft is the major bottle neck that new entrants would face in the Aviation sector especially in the Asian region. Based on the statement, the complexity and unique of the airline industry, AirAsia need to come out with the greatest strategy to compete with their rival in the same industry. As more low-fare airlines enter this promising market, itwill become more competitive, with price dominating all other criteria in consumerdecisions and choices. As a result, by using this yield management system, AirAsia can understands the behavior of their customer and offering the effectives and efficiency strategy and also can allocate capacity to maximize the expected revenue.
It includes Internet; call center, airport departure control and more. This is the most distinct and unusual strategy amongst all the three strategies discussed above. To make this strategy successfully implemented: Opportunities It can be seen that there are about 2 major events that are taking place now or going to take place in less than 6 months from now. What SWOT analysis explains? This is because, strategic management becomes important in AirAsia due to the following reasons.
The Aviation industry still has lot of scope to control the noise pollution and carbon emission issues for the benefit of the environment. Finally, in Asia, low-fare airlines are less likely to compete with more expensive providers for the same customers, and are more likely to target individuals who would otherwise not travel by air.
Furthermore, based on the environmental scanning performed, the demand for low cost carrier LCC industry will keep growing rapidly. Weaknesses The increase in the Air traffic is resulting in the major congestion at several leading Airports across Asia.
On the other hand, AirAsia is an imitator in a market with limited competition and growing demand from a previously non existent market segment. This may result in increased brand loyalty among the customers.
The most effective approach for Stduy is likely to be capitalizing on the above advantagesto the maximum, rather than attempting to create hostile competition, especially withincumbent carriers. Costs that do not add value must be contained, reduced and even eliminated. The continuous government support and minimum migration restrictions are also a key strength that has supported the operational functioning of the brand.
Case Analysis: Air Asia Berhad–126903
On this paper, I would like to identify and analyze the AirAsia Company strategic tsudy Furthermore, the second reason why AirAsia need to consider a strategic management because in a company nowadays, general management which is the process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling may not sufficient and supportive for the organization succeed in the world of complex environments.
To make this strategy successfully implemented: Threat of the new entrants The Threat of the new entrants for the brand Air Asia Berhad is currently assessed as very low. This will definitely increase the competition among the regional airlines. Harvard Business School Stud.
Airasia Strategic Management Report
By implemented outsourcing in the IT field, AirAsia also can reduce cost in IT system activities which is can make possible more cost in their business. The Increasing regional urbanization, increasing medical tourism destinations and cawe educational institutions across the Asian continent is expected to create new stidy destinations for Air Asia Berhad.
The achievement that AirAsia received in on the last awards and recognition is the best low cost airline in the world. Environmental Analysis The technological research pertaining to manufacturing more fuel efficient aircrafts have to be carried out by the Aviation Industry. Bargaining power of the suppliers. The lengthy airzsia for obtaining the operating license for the aircraft is the major bottle neck that new entrants would face in the Aviation sector vase in the Asian region.
The control in this strategy also gives benefits because AirAsia function only to be a controlled a system that is AirAsia used. However, the rising fuel cost and fluctuations in the oil prices are the factors that are negatively impacting the growth prospects of the Aviation Industry.
(DOC) SWOT Analysis for Air Asia | dee tee –
Examples of complaints are around flight delays, being charged for a lot of things and not able to change flight or get a refund if customers could not make it. The cost leadership in AirAsia Company is already approving because AirAsia more focused and concentrated in the lowest cost carrier in airplane industries. Alliance with Galileo GDS that enables studh agents rom around the world to check flight details and make bookings have also contributed to their string brand name.
Steps to conduct Now Everybody Can Fly: Bargaining power of the suppliers The Bargaining power of the suppliers for Air Asia Berhad is currently assessed to be very strong.
(PDF) The ascendance of Air Asia | nik Bomen –
The workforce is very flexible and high committed and very critical in making AirAsia the lowest cost airline in Asia. Managers have to be certain if the weakness is present because of lack of strategic planning or as a result of strategic choice.
The internal factor can take a look into strength and weakness in a company, and for the external factor, a company can look at opportunities and threats in the external environment. PorterCompetitive Strategy New York: Strategic capabilities of AirAsia Berhad Using SWOT Analysis and Races Model Understanding the strategic capabilities of an organization is the primary step before evaluation of the strategic choices to fight back market competition.
It concerns about the process to manage the company internally but do not concentrate more on creating competitiveness regarding environments affecting the organization. The Aviation Industry has to stufy invest in the latest technology equipments for providing better flying experience to its consumers and also to enhance the safety arrangements of the customers on board.