PORTER’S FIVE FORCES 4 Power of Suppliers Criteria Level Effect on Power Effect on Profit Difference of Inputs High Increases Decreases Cost of Switching Suppliers High Increases Decreases Threat of Forward Integration High Increases Decreases Supplier Concentration High Increases Decreases Difference of Inputs Product differentiation within inputs in the tech industry is largely dependent on how recently the input has been developed (the extent of which it is considered
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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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infusion sets‚ disposable syringes‚ and corrugated cartons. Some of these products are also being exported. Printing and packaging industries and even the advertising agencies consider pharmaceutical industry as their major clients and a key driving force for their growth. The pharma sector has created job opportunities for highly qualified people. Many of the leading entrepreneurs of today had started with pharmaceutical companies in the country. Pharmaceutical
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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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Michael Porters competitive force model is used to displays how information technology can upgrade the competitiveness of a corporation. It is also used to develop strategies to increase competitive edge. Competitive strategy must grow out of a sophisticated understanding of the structure of the industry and the industry is constantly changing. Regardless of the industry‚ Michael Porters five forces will bring forward your strengths and weakness. The five forces are: The threat of new entrants‚
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AIR ASIA Company profile: Air Asia needs no introduction in ASEAN‚ where it is the leading low-cost carrier‚ connecting people and places across 132 routes‚ 40 of which are offered by no other airline. In 2010‚ the Group‚ which includes affiliates Air Asia Thailand and Air Asia Indonesia‚ reinforced its leadership position with two remarkable milestones: flying its 100 millionth guest and breaking the RM1 billion(ringgit) profit barrier. From an airline with two aircraft plying six routes in Malaysia
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Porter’s 5 Forces Analysis- Need to include one consistant example-The conclusions/improvements that can be drawn from Porter’s 5 Forces-Every force should have a fancy quote and reference Introduction Developed by Michael E. Porter‚ “Porters 5 Forces” have shaped a generation of academic research and business practice. Intense forces lead to less attractive returns on investment as can be seen in the airline textile and hotel industries. Benign forces exist in industries such as software‚ soft
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Links: below). Air Asia is currently the largest and the most successful budget airline in the whole of Southeast Asia‚ pioneered by Malaysian entrepreneur Tony Fernandes. He privately bought Air Asia‚ then an ailing government-linked airline and turned it around as a no-frills budget airline until it was profitable and publicly listed. Possibly the only
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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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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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