Air Asia A. Introduction 1. Objective and scope This paper will analyze the internal and external environment of Air Asia and will look into how it uses Management Information System ( MIS )‚ specifically its online reservation system to gain competitive advantage. And also discuss why and how important is MIS to Air Asia in running its business. 2. The Important of MIS Low Cost Carriers (LCC) business model is based on no frills service. This means that cost savings is a critical success factor
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OUMM2103 1.0 INTRODUCTION TO AIR ASIA AirAsia 1 : The AirAsia Logo AirAsia was established in 1993 by DRB-Hicom‚ a Government-owned conglomerate. It started operations in 1996. Tune Air Sdn Bhd‚ Tony Fernandes’s company purchased this heavily indebted airline business from DRB-Hicom in 2001. AirAsia managed to become profitable and world renowned low-cost airline through visionary leadership and innovative business approach. Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International is AirAsia’s
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Wal-Mart: The High Cost of Low Price The Industrial Revolution was a period in the late 1700s and early 1800s where changes in agriculture‚ manufacturing‚ mining‚ transportation‚ and technology had a large effect on economic‚ social‚ and cultural conditions. The first industry to be industrialized was the textile industry in Britain. However‚ not everything resulting from the industrial revolution was good. In fact‚ the pollution‚ poor working conditions‚ and poor living conditions in the industrial
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CRM Air Asia is using Customer Relationship Management (CRM) as their performance measurement system. This performance measurement system is putting customer at the heart of the business. It satisfies the customer needs and wants. It is strategy and process of acquiring‚ retaining‚ and partnering with selective customer to create superior value for company and the customer. This will then increase the shareholders wealth and company value in the long term. According to the Chairman of Air Asia
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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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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
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of new low-fare airlines. Analyst revealed that low 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
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3) Ryanair was introduced as a low-cost airline in 1991‚ CEO Michael O’Leary used the low-cost American‚ SouthWest airline model to plan their tactical direction. Ryanair has set values‚ which they want to succeed in such as: product leader‚ operationally excellent and being intimate with their customers. ( Dbuccellato2011‚ 2012) As for Southwest airlines‚ it is a people-oriented company and uses that orientation to leverage its advantages. It cuts costs by having employees who work for a company
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Low cost airlines have revolutionised flying – but at what price ? Low cost airlines are ideal for the difficult days we are going through with the financial crisis. However‚ these airline companies’ services have many advantages and disadvantages that deserve to be debated. If one want to travel for a very short time‚ then booking a ticket with such a company is the best deal to make. On the contrary to what one might think‚ a low cost flight is not more dangerous than a regular one‚ because
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Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit. Fernandes proceeded to engineer a remarkable turnaround‚ turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US $0.27). AirAsia has been expanding rapidly since 2001‚ to become an award winning and the largest low cost carrier in Asia. Organization A new budget
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