Porter generic strategies by airasia

One of the major pitfall against attempting to differentiate is by trying to combine low cost and differentiation strategy by starting to add frills in its business model. Having employees perform multiple roles enabled AirAsia to deploy fewer employees per aircraft i. In order to meet According to Michael Porter there are four Generic strategies: 1. What a Datuk Tony Fernandez said is very strong opinion about their company to running their business. Additionally, they perform only operational effectiveness but not strategy. For instance, its large purchase of As would make AirAsia on of the relatively few low cost airlines operating this aircraft. Online resources 1.

AirAsia was the creation of former music publisher Tony Fernandes. In Europe and early in Southwest's history, luggage is not automatically transferred from one flight to another, even if both flights are with the same company.

Airasia and the tune group diversifying across industries

By Michael Porter. Moreover, AirAsia realised the price is destructive and try to avoid direct price Low Fixed Costs AirAsia achieved low fixed costs through successful negotiations for low lease rates for its aircraft, low rates for its long-term maintenance contracts, and low airport fees. The effective method however is to combine these two levels for all flights, all routes so that both the seat and the route are effectively priced for all the flights. In conclusion, those are the Air Asia strategy to make Operation effectiveness and outstanding efficiency in their business. On this section, I will identify one by one the strength, weakness, opportunities and threats in AirAsia Company. Aruan, et al. On the next section, I would like to discuss about AirAsia business strategy: how to implement and achieve it. Yield management system as revenue management system it understands, anticipates, and reacts to the behavior of customer to maximize revenues for the organization. In total, electronic commerce is minimizing the expense and cumbersomeness, improved products, and higher profitability [6]. Established on 12 December , AirAsia has been such a big phenomenon in airline industry especially in Asia.

L, According to Daniel Chansince the s, the competition for the Asian air travel market has always been intense. Porter's five forces include the overall structure rather than focusing to any one element.

air asia cost advantage

Based on this statement, the current issues in AirAsia Company are how to achieve to be a lowest carrier in the world in Airplane industry.

After that, by using outsourcing, AirAsia can easily to control all the system that is outsourced to another vendor or company.

In order to make sense of what is going on around them, firms must undertake an analysis of their external and internal environment.

airasia flying low-cost with high hopes case analysis

Good customer service and management is critical especially when competition is getting intense.

Rated 6/10 based on 61 review
Competitive Advantage of Air Asia