AIr Asia using IT
BIS 541 MANAGING INFORMATION SYSTEM
TMA 1
Executive Summary
The use of Information technology is important to build the strategic and operation management of airlines, and help to build the future airlines successfully. The emergence of the Internet in the mid1990s as well as the development of Intranets and Extranets forced airlines to refocus their strategy on technological innovations in order to enhance their competitiveness. (Buhalis 2004). AirAsia believes in the low fare business concept and feels that keeping cost low requires high efficiency. The major threat and challenges which AirAsia is facing right now are competitive environment due to industry rivalry and the need to create differentiation to gain competitive advantage among other low cost carriers.
Based on SWOT analysis, we can see that the company has been using an extensive of IT systems in their value chains. It has gain strengths in operations by implementing YMS, CRS and ERP systems. Analysing with Porter 5 Force on external environment, we could see that the major threats are increasing competition from other airlines and increase in operation cost. AirAsia needs to maintain its competitive advantage by maintaining low operation cost but also provides sufficient customer service in order to gain differentiation in the industry.
Few solutions are proposed to address the threats and challenges. The solutions are to implement mobile applications and the ‘Roving Agent’ system. Customer Relationship Management (CRM) is highly recommended as one of the strategic IT implementation. The recommendation for AirAsia is to apply CRM strategy to develop new ways to manage both customer relationships and suppliers or partners to optimize customer loyalty, supplier relationship and revenue.
Statement of Problem
This study is conducted with the objective to identify the challenges faced by AirAsia in aviation industry using SWOT analysis and Portal 5 forces. It will look into how
TMA 1
Executive Summary
The use of Information technology is important to build the strategic and operation management of airlines, and help to build the future airlines successfully. The emergence of the Internet in the mid1990s as well as the development of Intranets and Extranets forced airlines to refocus their strategy on technological innovations in order to enhance their competitiveness. (Buhalis 2004). AirAsia believes in the low fare business concept and feels that keeping cost low requires high efficiency. The major threat and challenges which AirAsia is facing right now are competitive environment due to industry rivalry and the need to create differentiation to gain competitive advantage among other low cost carriers.
Based on SWOT analysis, we can see that the company has been using an extensive of IT systems in their value chains. It has gain strengths in operations by implementing YMS, CRS and ERP systems. Analysing with Porter 5 Force on external environment, we could see that the major threats are increasing competition from other airlines and increase in operation cost. AirAsia needs to maintain its competitive advantage by maintaining low operation cost but also provides sufficient customer service in order to gain differentiation in the industry.
Few solutions are proposed to address the threats and challenges. The solutions are to implement mobile applications and the ‘Roving Agent’ system. Customer Relationship Management (CRM) is highly recommended as one of the strategic IT implementation. The recommendation for AirAsia is to apply CRM strategy to develop new ways to manage both customer relationships and suppliers or partners to optimize customer loyalty, supplier relationship and revenue.
Statement of Problem
This study is conducted with the objective to identify the challenges faced by AirAsia in aviation industry using SWOT analysis and Portal 5 forces. It will look into how
References: Buhalis, Dimitrious. 2004. eAirlines:Strategic and Tactical use of ICTs in the Airlines Industry. University of Surry . M.Burn, Janice. n.d. "Intro to MIS and Global Concept of Electronics Business." In Managing Information System, Unit 1 page 32. Wawasan Open University. M.Burn, Janice. 2002. "Unit 2 - E-business and Market Competitions ." In Managing Information System, 7. Wawasan Open University.