Question 1 Discuss the growing demand for logistics. (10m) The reason for the rapid growth of the logistics industry can be attributed to the fact that a majority of the companies dealing in logistics operations target clients of medium size instead of targeting the stalwarts of the logistics industry. Nowadays‚ the advance IT technologies had make the internet retail or online shopping is growing rapidly and this will be an increasing source of demand for both large and smaller logistics units
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cultural‚ political and economic factors. However‚ these factors may vary depending with the company. In this study case of Air Asia‚ low price was the smartest marketing strategy Air Asia used. The company has done its research and found that there were a huge mass middle-class people that love to travel by plain. They targeted these people and offered them convenient and affordable air travel experience. By this approach‚ the company has satisfied its slogan “Now everyone can fly”. Second factors in
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rise. It thus announced a plan to build its own airport which it claims will be built on time and to keep expenses low. There has been frustration by AirAsia in the poor performance of the KLIA operators. AirAsia has also list down the justification of choosing the site for the airport.[9] Among them are:- Location - The new location is cost efficient‚ good connectivity to highways and railway lines‚ and a readily available land. The land is
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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
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Malaysia Airline (MAS) and Air Asia is the main air transport in Malaysia. The passengers of this two flight company are increasing every year. Their have also creates a lot of destinations to let the customers choose. I have chosen three articles for my reference. The first article is about interview of new Malaysia Airlines chief executive Azmil Zahruddin. “We are constantly monitoring our network and focusing on the religion that we feel will have high demand‚ and allow us to increase
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passengers to establish its own niche market due to the demise of Tan Sri Yahaya Ahmad and financial crisis. Hence‚ AirAsia was heavily indebted. In 2001‚ Tony Fernandes’s company‚Tune Air Sdn Bhd bought this airline from DRB-Hicom with estimation of RM 40 million debts. There are many continuous transformations that Air Asia makes in order to become outstanding‚ to accomplish its strategic mission and vision and maintain sustainability in the industry. Using the catchy and effective slogan of "Now everyone
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fares are often the deciding factors for budget-conscious travelers in Southeast Asia. This region represents a huge population‚ which offers low-fare airlines a vast market with promising profits. China’s huge population alone offers a great market for low-fare airlines. Demand may differ for low-fare services between the South East Asian region and in North America and Europe. In Europr and America customers the Asia Pacific region low airfare is the main driving force for choosing an airline carrier
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SWOT : AIR ASIA Strengths 1. low cost operation 2. target mass customers 3. efficiency workforce 4. Staffs have multi skill to do their job. 5. single type fleet to service the customer‚ it easies to maintenance. 6. lowest fare more than others. 7. Sell the ticket direct to the customer. Weakness 1. Limited service to the customer. 2. charge every things except the ticket 3. A lot of competitor. 4. Brand positioning lower than other brand. 5
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be achieved by maximizing passenger number per flight • MAS‚ under Idris Jala cut several unpopular flight routes due to irregular number of passengers and increased number of flights in high demand routes to cut unnecessary expenses and costs • Air Asia benefits from the lowest flight cost‚ USD$0.02 ASK* (Southwest Airline [US LCC] – USD$0.04‚ MAS - $0.41‚ Cathay Pacific $0.59) b. Technological Change i. Technology is a key determinant however change is not very rapid ii. Releases of new aircraft
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Market………………………………………………………..7 II. Capitalize on the corporate business………………………………………………………13 Conclusion……………………………………………………………………………………15 AirAsia Background Information AirAsia is Malaysian low-cost airline that provides both domestic and international flights. AirAsia started operating on 18 November 1996‚ it pioneered low cost travelling in Asia. In 2001‚ the airline which was heavily indebted was purchased by Tony Fernandes’s company Tune Air Sdn Bhd. Under his charge‚ AirAsia has become one of
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