Value Chain Analysis of AirAsia The value chain analysis is used to evaluate the value of each particular functional activity that is added to the organisation’s products or services as seen in Diagram 1 [pic] a) Logistics This involves all areas of receiving‚ storing of inputs when producing outputs. So far‚ AirAsia only operates on a single type of aircraft‚ the Boeing 737-300. Based on a report published by Aero Connections in 2004‚ that particular model was the best selling commercial
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AirAsia was initially launched in 1996 as a full-service regional airline offering slightly cheaper fares than its main competitors. Unable to stimulate the market or attract enough passengers‚ the company was beset with major financial troubles. In 2001‚ Tony Fernandes reinvented the airline to model Southwestern’s no-frills/low cost design and with only three B737 aircrafts was able to quickly create one of the most profitable airlines in the world. Economies of Scale – Economies of scale exist
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The third micro environment is Marketing Channel. AirAsia has cultivated a reliance on Internet innovation for its operational and vital administration‚ and gives an online ticket booking administrations to explorer on the web. Air Asia is utilizing Customer Relationship Management (CRM) as their execution estimation framework. This execution estimation framework is putting client at the heart of the business. It fulfils the client needs and needs. It is technique and procedure of obtaining‚ holding
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Introduction AirAsia Berhad is the leading airline in Asia which offers the largest low fare for domestic and international flights. It was established as a low cost airline as a dream by making flying is possible for everyone. It is just like their company slogan ‘Now Everyone Can Fly’. It scheduled to travel up to 78 destinations across to 25 countries domestically and internationally. AirAsia was a company originally owned by Malaysian government which was later bought by Anthony Francis
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5.1.1 Low Operating Cost As we all know‚ AirAsia Berhad (AirAsia) is famous of its low-cost airfare. AirAsia is controlling excellently for parts of operation and distribution which both helping with keeping costs. Low cost principle that applied by AirAsia by eliminating provision of in-flight services that will definitely reduce the burden of high facility and overhead costs (Zhu‚ 2015). For instance‚ no frill or no luxury products will be installed inside the aircraft which means no free food
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the form of buying of aircrafts‚ staff hiring‚ pilot hiring‚ etc. Thus‚ the threats of new entrants for AirAsia are very low. AirAsia uses a very simple and effective strategy of selling tickets. People have to buy tickets from AirAsia’s website which they do very easily. Thus‚ through this process‚ AirAsia saves a lot of money by not being liable to pay any travel agent. This Strategy of AirAsia is hard to imitate and makes them less vulnerable to new entrants. It also provides facilities to people
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Module title: Information Systems Development Trends (CT037-3-3ISDVT) Assignment title: AirAsia Airlines Student name: EBRAHIM HAMID HASAN SUMIEA Student No: TP023669 Intake Code: UC3F1208SE Hand out date: 26 FEBRUARY 2013 Hand in date: 31 MAY 2013 Lecturer name: AHAD JAWWAD Table of Contents No. Content Page 01. Introduction to the Organization 3 02. Executive Summary 4 03. Assumptions 4 04. Organisation Analysis 5 05. Implemented Methodology
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2014)‚ AirAsia had no fatal crashes in its history for more than a decade of operations. However‚ after thirteen years the business had run‚ AirAsia QZ8501 carrying 162 passengers went missing as it lost contact with air traffic control on its way from Surabaya‚ Indonesia to Singapore on 28th December 2014 (Bruton‚ 2015). Since the bad weather was the cause of the missing flight‚ on 29th December 2014‚ Indonesian officials declared that the flight was likely at the bottom of the ocean (“AirAsia QZ8501:
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airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their competitors. To compete with their competitor in the business environment‚ a company needs to make a strategy to achieve their long terms objective and can be successful for doing their business. Moreover‚ to be successful
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INTRODUCTION AND HISTORY AirAsia is a very successful low cost carrier. In a very short time‚ it became a market leader in the Asia region. The company successfully adopted cost leadership through operational efficiency and effectiveness. Using the slogan “Now Everyone Can Fly‚” AirAsia positioned itself successfully in the niche LCC market. AirAsia was the creation of former music publisher Tony Fernandes. After watching a television show in a pub about easyJet successfully competing against British
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