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 Strategic Management Report |[pic] | |[pic] |[pic] |[pic] | SWOT analysis of AirAsia Strengths Firstly‚ Air Asia has indeed a strong management team. This is clearly known as it has very strong links with the governements and
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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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Business-Level Strategy of Air Asia Introduction: Aviation‚ an industry where it is full of fluctuations‚ has always been affected by various factors. It is not uncommon to see aviation-related companies keep changing their own strategies to make ends meet. Overall the air industry in Asia has continuously growth recently and maintains a high level of ranking. Among the explosive growth in budget airlines market‚ Air Asia is obviously the typical example for further study with the most fleet sizes
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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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you all know‚ MAS and AirAsia now are fighting over who has the best and cheapest campaign. Everyday we can see on newspaper MAS offering flying to various locations at RM0. The next days AirAsia shoot back with other location with free seats or 99 cents fares. AirAsia flight offers out with a special promotion Now Everyone Can Fly n 2010. AirAsia also offer flight and tour packages.. The price of flight fares between MAS and AirAsia‚ AirAsia is cheaper than MAS. AirAsia wants to be the lowest
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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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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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Nowadays‚ the competition among airplane industries is very tough. According to Daniel Chan (2000)‚ with just about two years to go to the turn millennium‚ air wars over Asia are hotting up‚ with some of the world’s biggest 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
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