1) Identify five (5) of competitive advantages used by AirAsia
-Launching
new routes from its hub in Kuala Lumpur International Airport at breakneck
speed.
-Undercutting
former monopoly operator Malaysia Airlines with promotional fares as low as RM1
(US$0.27).
-Operates
scheduled domestic and international flights and is Asia's largest low fare, no
frills airlines
-Pioneered
low cost travelling in Asia which is then followed by Tiger Airways, Jetstar
Asia, Nok Air, Lion Air and Cebu Pacific.
-The
first airline in the region to implement fully ticket less travel
and unassigned seats
2) Which of the Porter's generic strategies were applied by AirAsia in the case study and
explain with examples.
- The
Porter's generic strategies that was applied by AirAsia is cost leadership. Air
Asia is becoming a low-cost producer in the industry that allows the
company to lower prices to customers. AirAsia is pioneered low cost
travelling in Asia which is then followed by Tiger Airways, Jetstar Asia, Nok
Air, Lion Air and Cebu Pacific. Also, AirAsia operates in broad market.
It operates scheduled in domestic and international flights and is Asia's largest
low fare, no frills airline. In the plan, AirAsia will strengthen and enhance
its route network by connecting all the existing cities in the region and
expanding further into Indochina, Indonesia, Southern China (Kun Ming,
Xiamen, Shenzen) and India. The airline will focus on developing its hubs in
Bangkok and Jakarta through its sister companies, Thai AirAsia and Indonesia
AirAsia.
3) Based on Porter's Five Force Model, analyze AirAsia's buyer power and supplier power.
Buyer
power
Air Asia
assessed by analyzing the ability of buyers to directly impact the price to pay
for an item. As an example Air Asia giving a low cost travelling to their
customers and also with the world's lowest unit cost of US $0.023 (ASK).
Usually airline industry has high buyer power because of customer have many
choices.
Supplier
power
Air Asia
assessed by the suppliers' ability to directly impact the price they are
charging for suppliers. For example Air Asia is currently the main customer of
the Airbus A320. The company has place an order of 175 units of the same plane
to service its route network by connecting all the existing cities in the
region and expanding further. Usually airline industry has high supplier power
as there are limited plane and engine manufactures to choose from
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