------------------------------------------------- Image via Wikipedia . I read an article about Tony Fernandes‚ the CEO of AirAsia‚ in The Economist today that got me thinking. Thinking about the last few articles I’ve written about United Airlines‚ RyanAir and Southwest Airlines – on how they make money off their customers – what what works and what doesn’t. There’re a lot of airlines in the US and Europe can learn from Tony Fernandes and AirAsia (+ Azran and AirAsiaX). Here’s how the article in The
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Air Asia: Strategic management report Intoduction Air Asia was founded in 1993 and has since grown to be one of the biggest airlines in the world. It initially operated in Malaysia and currently operates in over 25 countries (Ricart and Wang 2005). It began operations in October 1996‚ operating out of Kuala Lumpur as its central location (Ricart and Wang 2005). The airline was bought by Tune Air in 2001 for one ringgit‚ the equivalent of 0.26 US cents‚ at a time when the company had $10.5 million
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AIR ASIA Case Study Report 12509501267460 Core concepts : Porter’s 5 forces‚ SWOT Analysis ‚ Analysing the internal environment‚ Porter’s Value Chain‚ Competitive advantage within International context(cost analysis and differentiation) 1.0 Porter’s Five Forces: 6197601720215 1.1 Threat of new entrants- There is a need of high initial investment to run an airline industry business. This high capital requirement is in the form of buying of aircrafts‚ staff hiring‚ pilot hiring‚ etc. Thus‚
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[online]. Available at: URL:http://www.investopedia.com/terms/o/organicgrowth.asp [Accessed 20 December 2008] • KEEFE‚ L.‚ 2004. Encouraging employee communication [online]. Available at: [Accessed 4 January 2009] • MANAGE 12‚ 2009 • REUTERS‚ 2009. Ryanair rebuffed by Aer Lingus investors [online]. Available at: [Accessed 7 January 2009] • REYNOLDS‚ T.‚ J.‚ 2006. Methodological and strategy development implications of decision segmentation. Journal of advertising research. December. • THOMPSON‚
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to drill holes. Become exclusively low customer cost provider No synergies possible between existing enterprise and low cost unit. A major portion of customer segment is price sensitive. You are willing to acquire new business capabilities. Ryanair Firms can either attack‚ co-exist uneasily or become low cost plays themselves. It is easy to fight traditional rivals due to similarities in their game plans and prowess but most companies overlook the threats from disruptive‚ low cost competitors
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Business Model Design: An Activity System Perspective‚ Long Range Planning 43(2e3)‚ 216e226 (2010); see also C for papers for this Long Range Planning Special Issue on Business Models (19 March 2008). London (1985). 8. J. W. Rivkin‚ Dogfight over Europe: Ryanair (C)‚ Harvard Business School case 700-117 (2000). Management Review 123‚ 50e59 (2006). 14. M. Johnson‚ C. Christensen and H. Kagermann‚ Reinventing your business model‚ Harvard Business Review 86(12) (2008); C Harvard Business School Note 9-610-019(2009);
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Regional Science Association Porter‚ ME 1980‚ Chapter 1: the structural analysis of industries in competitive strategy: techniques for analyzing industries and competitors‚ New York‚ Free Press‚ pp.3-33 Ottink‚ F 2004‚ EasyJet will soon be bigger than Ryanair‚ Yeald
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demand for particular flights to price the tickets accordingly. This has been particularly prevalent in recent years for airlines‚ particularly low cost carriers such as Ryanair whose prices for a flight vary greatly.. Aircraft acquisition airlines must negotiate deals with aircraft manufacturers to acquire planes. For instance Ryanair use a standardized airplane which allows them to reduce their staff training costs‚ as well as their maintenance costs. Support activities Firm infrastructure
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com/article/104394-when-will-the-recession-end accessed on Ritzer‚ G Russel‚ B. (1932) In praise of Idleness Smith‚ P.B.‚ and Misumi‚ J Sportswear firms to investigate Oxfam sweatshop claims http://www.guardian.co.uk/globalisation/story/0‚7369‚1161734‚00.html Thomson Reuters‚ 2009) Ryanair to cut all airport check-in desks http://uk.reuters.com/article/allBreakingNews/idUKLL53874020090221 accessed on UK National Statistics‚ (2009) Willsher‚ K.‚ (2007)‚ Heading for a Breakdown‚ The Guardian‚ 10th March‚ 2007 (http://www.guardian.co.uk/money/2007/mar/10/careers
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individuals; it also expects businesses to abide similar standards. Business ethics is therefore the application of ethical values to business behaviour. It applies to all aspects of business conduct from boardroom strategies and how companies treat their suppliers to sales techniques and accounting practices. Ethics goes beyond the legal requirements for a company and is therefore a matter of choice. Business ethics applies to the conduct both individuals and to the organisation. It is about how a company
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