...STRATEGIC ANALYSIS OF AIRASIA THE BEST LOW-COST CARRIER AIRLINES IN THE WORLD ASSIGNMENT FOR MICROECONOMICS FACULTY OF ECONOMICS AND BUSINESS NATIONAL UNIVERSITY OF MALAYSIA BY: IWAN BUDHIARTA P-46048 MALAYSIA – 2009 I. INTRODUCTION A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates all “non-essential” services. The typical low-cost carrier business model is based on: * a single passenger class * a single type of airplane (reducing training and servicing costs) * a simple fare scheme (typically fares increase as the plane fills up, which rewards early reservations) * free seating (which encourages passengers to board early) * direct, point to point flights with no transfers * flying to cheaper, less congested secondary airports * short flights and fast turnaround times (allowing maximum utilization of planes) * "Free" in-flight catering and other "complimentary" services are eliminated, and replaced by optional paid-for in-flight food and drink. Simple Product A typical low cost airline product is extremely basic. It focuses on getting passengers from point A to B, cutting out all the “extras”. This means there are no meals, drinks or snacks served free on board. In certain airlines, these may be purchased on request. The aircraft have Narrow seating to permit greater capacity. Low cost airlines offer all-economy flights, with no additional space requirements...
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...FREE ONLINE RESEARCH PAPERS Navigation Sign In Create Account Forgotten Password About Us Subscription Cancelation SIWES Project in Computer Science CHAPTER 1 INTRODUCTION 1.1 Overview of SIWES SIWES refers to the employment of students nearing under-graduation in firms or organizations, which operate on activities related to the respective student’s major subjects. The course, CSC 3299 as offered in Ajayi Crowther University is a compulsory subject offered by every computer science student in the 2nd semester of the third academic year with the objective of enabling students to come into contact with real life applications regarding the knowledge and skills gained in both theoretical and practical courses of the university. The core courses of Computer Science offered by ACU are both theory and laboratory practical -based and aid in providing a theoretical concept or ‘base’ to the students so that they are equipped with sufficient knowledge for joining the work force after completion of under-graduation. SIWES on the other hand helps the students familiarize themselves with the experience of being employed in their field and effectively learning and applying the knowledge required by carrying out their activities in the offices and fields. 1.2 Objectives of SIWES The general objectives if SIWES are outlined as follows: Helping students break free from the theoretical world of textbooks and class courses and leap into...
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...Information & Management 41 (2004) 805–825 eAirlines: strategic and tactical use of ICTs in the airline industry Dimitrios Buhalis* Centre for eTourism Research (CeTR), School of Management, University of Surrey, Guildford, England GU2 7XH, UK Received 16 June 2002; received in revised form 26 April 2003; accepted 6 August 2003 Available online 13 November 2003 Abstract Information Communication Technologies (ICTs) have revolutionised the entire business world. The airline industry in particular has fostered a dependency on technology for their operational and strategic management. Airlines were early adopters of ICTs and have a long history of technological innovation, in comparison to many other travel and tourism businesses. This paper discusses comprehensive research, including exploratory research with airline executives, using qualitative methods to examine the use of ICTs in the contemporary airline industry and to discuss recent developments in the industry. The work demonstrated that the airline industry was using the Internet to improve its distribution strategy and reduce costs; it also used Intranets and internal systems to develop tactical and strategic management. In addition, Extranets were being gradually used for communicating with partners and to support business-to-business (B2B) relationships. The effort demonstrated that ICTs will be critical for the strategic and operational management of airlines and will directly affect the future competitiveness...
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...Analysis is the Political, Economic, Social culture and Technology analysis that a company does to determine the overall business environment. A PEST analysis is a look at the external environment of a company or a business that plays an important role in managing and decision making of a company. It is crucial for a company to consider its environment before relating with the public or customers. The PEST analysis examines the impact of each of the factor on the company. Thus, political factor considers the impact of legislatives changes, stability of the economy and event that related with the government and politics that may affect the business. Influence of economy, such as interest rate, stability of economy, inflation levels and such helps the company make better decision on how to operate their company effectively. Besides that, the social drive is a crucial part on PEST analysis. Creating and developing a social culture takes time and effort and a new motive driven company such as Air Asia has to develop me method on how to connect with the society's lifestyle, demographics, and media. Technological point of PEST analysis relates with competing technology development with other competitors and effective information and communication between the market and the company. Political Analysis Political Analysis mainly states about the aviation acts and regulation which needed by aviation company such as Air Asia to operate their business. The political arena has a huge influence...
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...Sector Report No. 8 / 2006 ICT and e-Business in the Tourism Industry ICT adoption and e-business activity in 2006 European Commission Tourism About e-Business W@tch and this report The European Commission, Enterprise & Industry Directorate General, launched the e-Business W@tch to monitor the growing maturity of electronic business across different sectors of the economy in the enlarged European Union, EEA and Accession countries. Since January 2002, the e-Business W@tch has analysed e-business developments and impacts in manufacturing, construction, financial and service sectors. All results are available on the internet and can be accessed or ordered via the Europa server or directly at the e-Business W@tch website (http://ec.europa.eu/comm/enterprise/ict/policy/watch/index.htm, www.ebusiness-watch.org). This document is a sector study by e-Business W@tch, focusing on the tourism industry. Its objective is to describe how companies in this industry use ICT for conducting business, to assess the impact of this development for firms and for the industry as a whole, and to indicate possible implications for policy. Analysis is based on literature, interviews, case studies and a survey among decision-makers in European enterprises from the tourism industry about the ICT use of their company. Disclaimer Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information...
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...Introduction: In modern world tourism plays an integral part on the economy of a destination. Increase in tourism has given rise to many airline companies to provide the best service and safety to an individual to make his journey a memorable one. Airline companies are constantly upgrading with technology and other services for competing in this ever-growing airline industry. Malaysian airlines is one of the prestigious passenger airline carrier owned and run by the government of Malaysia also known as MAS in short. Malaysian airlines operates in more than 60 destinations around the world. Product and Experience Analysis: Malaysia Airways is one of the mid cost airline company and operates from the homeland base Kuala Lumpur. Malaysian airlines has established itself in the South East Asia region and travelling around the world. Malaysian airlines is one of the few airlines to be awarded with the 5 star airline status by Skytrax. Malaysian airlines also operates 2 airline subsidiaries Firefly and MASwings which operate internally within Malaysia. Other services offered by MAS include things like architectural operation, resort management, catering, digital booking companies, transportation and warehousing companies. MAS is an international carrier operating in 117 domestic destinations and 115 international routes in six continents. MAS offers 3 different classes first, business and economy class to suit the customer needs and compared to other 5 star airlines the prices offered...
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...2 1.3 Responsibilities of the organization and strategies to meet them 3 2.1 Economic system and allocation of resources 4 2.2 Impact of fiscal and monetary policies on the British Airways 4 2.3 Impact on regulatory and competition policies on the BA 5 TASK 2 7 3.1 Role of the market structure of the airline industry 7 3.2 Role of market forces in shaping the organization shape 7 3.3 Impact of the business and cultural environment on BA enterprise 8 4.1 Significance of the International trade for the BA organization 8 4.2 Analysis the impact of the global factors on BA 9 4.3 Impact of polices on the European Union on the BA 9 CONCLUSION 9 REFERENCES 11 INTRODUCTION British Airways is a multinational airline of the UK and it is the second largest firm in the world which carries highest number of passengers from one destination to other. It was established by the United Kingdom government in 1972 but after facing losses in 1987, it converted into private sector organization and now provides various services like carriage of freight and auxiliary service in compatible price etc. The research report explored the business environment of British Airways and evaluates the impact of competition, monitory and fiscal policies on the performance of the enterprise. Along with this, the project report also explained the impact of the market structure in determining the pricing and output decisions of BA business. TASK 1 1.1 Purpose of different types of the...
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...Talent Solutions Case Study AirAsia Business Challenge Company Profile AirAsia, the leading and largest low-cost carrier in Asia, services an extensive network of 85 destinations. Within 10 years of operations, it has carried over 152 million guests and grown its fleet from just two aircraft to 106. The airline today is proud to be a truly ASEAN (Association of Southeast Asian Nations) airline with established operations based in Malaysia, Indonesia, Thailand, Philippines and Japan. This is complemented by AirAsia X, its low-cost long-haul affiliate carrier that currently flies to destinations in China, Australia, Taiwan, Nepal, Korea and Japan. AirAsia was named the World’s Best Low Cost Airline in the annual World Airline Survey by Skytrax for four consecutive years, from 2009 to 2012. Since 2001, AirAsia has swiftly risen to become one of the leading low-cost carriers in the world. In Malaysia where its headquarters and other key corporate functions are based, one of its key human resource challenges has been to stay ahead of the growth curve by sourcing for quality candidates to fill critical high-level positions within the company. AirAsia had been advertising on social media networks such as Facebook and Twitter as well as other job portals to fill non-executive or executive roles. However, while this approach worked well for positions such as Flight Attendants and Guest Service Assistants, it was less successful when it came to filling...
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...SUSTAINABILITY AT TELSTRA Bigger Picture 2014 Sustainability Report Sustainability at Telstra Contents CONTENTS About us Chairman and CEO message Sustainability scorecard Sustainability highlights Our approach Strategy infographic 03 04 05 06 07 08 Stakeholder engagement Key issues 09 10 11 Click on page links Transparency and accountability Bigger Picture 2014 Sustainability Report 2 Sustainability at Telstra About us ABOUT US Our business Telstra is Australia’s leading telecommunications and information services company, offering a full range of communications services and competing in all telecommunications markets. We employ close to 32,000 people directly, facilitate access to more than 1,900 points of presence across the globe and have one of Australia’s largest shareholder bases, with 1.4 million shareholders. We have a diverse range of customers, including consumers, small business, large enterprises and government organisations, and we strive to put them at the centre of everything we do. In Australia, our services are offered through 362 Telstrabranded retail stores, 90 Telstra Business Centres, 127 Telstra business and enterprise partners and are distributed by over 15,000 retail points of presence managed by our partners. In Australia we provide 16 million mobile services, 7.5 million fixed voice services and 3.7 million fixed data services. Telstra’s international businesses...
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...airlines industry since 2001 as a low cost carrier and with its strategic planning had determined and maintained the airlines profitability and good relationship with the customers, which is the main reason behind their success. Mission Simple, Honest, Great Fun and Inspirational being The Mission of Kulula.com has contributed to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit. (Source : Jowell (2002); VOL 1 NO1|emerald emerging markets case studies|pg 19) Strategy Marketing strategies developed by Kulula.com has developed product differentiation and this creation has intimated a good relationship with the customers and has led to quality service at affordable price. Policies The policies of Kulula.com were formulated, keeping in mind to attain customer loyalty of present and potential customers and has successfully established its image in both the corporate and the commercial world, which has resulted with achieving 10% - 15% of the domestic market share in the aviation industry of South Africa. Philosophy Kulula.com’s committed philosophy of ‘Now anyone can fly in South Africa’ to achieve its goals and objectives and ensure uncompromising standards of safety, comfort, reliability & service to its valued Customer & partners. PESTEL (International, Demographical) Analysis As airline industry is a large and growing industry, “PESTEL Framework Analysis” offers the analysis of political, economic...
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...history of AirAsia that despite the challenges that they have faced, AirAsia continues to defy the odds. Since December 8, 2001, when the company was taken over by the new Air Asia management, AirAsia has grown to become the largest low-cost carrier in Asia. Today the airlines are operating in Malaysia, Thailand and Indonesia. With more than 6,000 talented, hardworking and committed employees and a market capitalization in excess of RM2billion, Air Asia has earned a reputation as a consistent performer no matter what the external environment. They have seen a future in which their success is not constrained by resources or opportunity. ORGANIZATIONAL ANALYSIS Company Background AirAsia is Malaysia’s second national airline was incorporated in 1993 as a full-service regional airline under DRB-Hicom. They started their operations on 1996. After starting their operations for few years, AirAsia failed to attract enough passengers to establish its own niche market. AirAsia was also facing problems such as the demise of Tan Sri Yahaya Ahmad and 1997-1998 Asian financial crisis. Due to 1997-1998 Asian financial crisis, AirAsia was heavily indebted. On 8 December 2001, music mogul Dato’ Seri Tony Fernandes decided to retire from music industry and purchased 99.25 per cent equity (51.68 million shares) in shares from DRB-Hicom via his company Tune Air Sdn. Bhd. with a token sum of one ringgit. Without looking back, Tony Fernandes transformed AirAsia as a low fare airline together...
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...1.0 Introduction to analysis of British Airways on ICT task Information Communication Technologies (ICTs) have revolutionized the entire business world. The airline industry in particular has fostered a dependency on technology for their operational and strategic management. Airlines were early adopters of ICTs and have a long history of technological innovation, in comparison to many other travel and tourism businesses. British Airways (BA) is one of the world’s leading global premium airlines. It operates a worldwide air cargo business, largely in conjunction with our scheduled passenger services. The use of Information Technology and the Internet are key factors in BA’s strategy, success and efficiency of the organization. BA recognized this opportunity and turned it into one of its strengths. Today, 76% of all its bookings are carried out via its e-ticket system giving customers the possibility of on-line/Kiosk check-in and seat bookings options. (Buhalis, D. 2004) BA is always implementing effective IT solutions and is considered today a market leader as is the case for the fare-explorer booking engine and the in-flight entertainment system which was awarded the ‘Best in Europe’. (2009/10 Annual Report and Accounts) BA is always keeping step forwards on the way of ICT enhancement and development: (2009/10 Annual Report and Accounts) * 2002 BA introduced first "calendar selling" of flights * 2004 Ability to change bookings added to web site * 2006 On-line...
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...Question 1 Discuss three major drivers that motivate organizations to introduce green IT initiatives. The idea of green technology has been around for many years following the trend of green movement which has been raising its hype over the past decade. Green IT refers to the study and practice of using computers and IT resources in a more efficient and environmentally responsible way (McCabe, 2009). It focuses on reducing the environmental impact of industrial processes and innovative technologies caused by the Earth’s growing population. Mainly this means creating fully recyclable products, reducing pollution, proposing alternative technologies in various fields, and creating a center of economic activity around technologies that benefit the environment (Gingichashvili, 2007). Molla (2008) identified three generic forces that can influence the adoption of Green IT — economic forces, regulatory forces, and ethical forces. Economic forces refer to the need for pursuing internal efficiency and market performance (Molla, et al., 2009). A research reveals that cost is the overriding factor for 70% of small businesses IT decision makers to invest in green technologies (Silcock, 2010). Green technology offers the same functionality as traditional technology, and for much the same up-front price. However, it also adds a host of additional benefits in terms of costs, technology and its influence on the organization. For example, green networking switches use less energy and so generate...
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...Improvement 5.3. SWOT………………………………………………………………… 6. References…………………………………………………………………. 7. Appendices………………………………………………………………… Appendix 1 Porter’s 5 Forces Model………………………………………….. 1. Abstract This report consists of an internal and external analysis of AirAsia using various methods including a PEST, Organization analysis, SWOT analysis and Porter’s 5 forces model. The main outcomes of the report are: 1.1 Conclusions reached: 1.2 Recommendations reached: 2. Introduction The company chosen for this report was AirAsia. The assignment required that: • A management report of 3,500 to 4,000 words is written on an organization. The report should describe, analyze and assess the impact of external and internal factors on the organization and evaluate the organization’s responses • In relation to technological change, analyze how it influences policies and decision making, critically evaluate the effectiveness of the organization and recommend areas for improvement in response for the organization. The company has been analyzed using the aforementioned procedures...
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...analysis and Porter’s 5 forces model. The main outcomes of the report are: 1.1 Conclusions reached: 1.2 Recommendations reached: 2. Introduction The company chosen for this report was AirAsia. The assignment required that: • A management report of 3,500 to 4,000 words is written on an organization. The report should describe, analyze and assess the impact of external and internal factors on the organization and evaluate the organization’s responses • In relation to technological change, analyze how it influences policies and decision making, critically evaluate the effectiveness of the organization and recommend areas for improvement in response for the organization. The company has been analyzed using the aforementioned procedures and tools; and conclusions and recommendations have been reached from these tools. 3. Background to AirAsia 3.1. Organization Definition A ‘no-frills’ airline is defined as one “That uses charter and/or scheduled flights to offer bargain-basement fares. Budget airlines usually land at and take-off from secondary airports, do not provide in-flight meals or refreshments, and may not even offer numbered seat allocation. Their ticket prices are fixed and non-refundable in case of a cancellation or no-show”. (i) 3.2. Looking at the Organization AirAsia is one of the fastest growing airline companies in the world, with a reputation as a low-cost, ‘no frills’ airline. It was originally a government owned business; yet, due to heavy debt, it was bought...
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