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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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
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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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INTRODUCTION Air Asia is a Malaysia Low Cost Carrier Airline Company which was founded in 2001 by Tony Fernandes. The company provides a totally different type of service in line with the nation’s goal which is to benefit all people and worldwide travellers. The main service takes the form of no frills. Before 2011‚ it is a money losing airlines operated by the government which after that became a successful airline company after being taken over by Tony Fernandes. It can be said it is a remarkable
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E-Commerce in AIR ASIA 11 3.2 Benefits of E-commerce to Air Asia 12 4 Data Management 13 5 Organizational ISs 15 6 Enterprise Systems 17 7 Management Decision Support 19 8 IT/IS for Competitive Advantage 20 8.1 Porter’s 5 Forces 20 8.2 Value Chain Analysis 20 8.3 Competitive Advantages using IT/IS 21 9 Recommendation and Conclusion 22 REFERENCES 23 APPENDIX A: AirAsia’s Marketing Strategy 24 APPENDIX B: Potential Suggestion for AirAsia 27 Organization – AirAsia 1 Overview Air Asia
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logistics markets‚ particularly the location of distribution centres servicing retail stores. Long-term‚ differential rates of demographic growth and ageing‚ and associated changes in incomes and spending‚ will have a dramatic impact on global supply chains. For many companies‚ this will drive significant change in their current logistics networks. As the United Nations report said‚ the world’s population has reached the 7 billion mark in year 2013.That mean ‚ the demand of product will increase due
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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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Michael Porter’s Value Chain History of Value Chain • Popularized by Michael Porter’s book best seller “Competitive • • Advantage” 1985 Creator of “5 Forces model” Helped Gereffi in the late 1990s develop Global Value Chain. Michael Porter’s Background • Born May 23‚ 1947 in Ann Arbor‚ Michigan • Received MBA in 1971 Harvard Business School • Competition and company strategy • 6 time winner of the McKinsey Award Value • The Value is the extent to which a good or service is perceived by
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edu/leadership-management/strategy/ceo-view-tony-fernandes-of-airasia-2108 Ong‚ Y. (2014). Fernandes Quits F1‚ Joins Other Asian Tycoons With Troubled Racing‚ Soccer Club Histories. Retrieved from http://www.forbes.com/: http://www.forbes.com/profile/anthony-fernandes Papars. (n.d.). Air Travel. Retrieved from www.answers.yahoo.com: https://answers.yahoo.com/question/index?qid=20070608233854AAwM19u Speaker Ideas. (n.d.). Tony Fernandes. Retrieved from http://www.speakerideas.com: http://www.speakerideas.com/tony-fernandes Times Internet
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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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