...Introduction……………………………………………………………………. 2 Air Asia Current Business Strategies…………………………………………..3 Possible Alternative Strategies Evaluation……………………………………. 7 Air Asia Resources Evaluation………………………………………………. 11 Possible Future Strategies For Air Asia Indonesia…………………………… 12 Air Asia Indonesia vs. Adam Air…………………………………………….. 14 Targets For Achievements of The Strategies………………………………… 16 Appendix……………………………………………………………………... 17 Bibliography………………………………………………………………….. 18 2 Introduction Air Asia Indonesia is an originally Malaysian airline company, which started to operate in Indonesia in year 2006. The report is about Air Asia Indonesia and strategies to make it a major player in the Indonesian airline market. 3 Air Asia Current Business Strategies Air Asia wants to be the lowest short-haul airline in every market it goes in. To achieve the goal, it has some strategies such as lean cost structure, different ways of promotion, keeping safety, satisfying guests, and developing human resources (AirAsia.com, 2007, Internet) . Air Asia always tries to keep the operations simple and efficient to keep the costs low, for example by simple and efficient online ticket booking. According to Fu Sen, an ex employee of Awair – the airline company bought by Air Asia , the tickets that have been booked online can printed by the customers or the customers can just remember the booking code and show their identity card for checking-in, so Air Asia can also save...
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...constantly facing several challenges, such as, overcapacity, commoditization of offerings, cut throat rivalry exacerbated by the entry of low cost carriers, and intermittent periods of disastrous under-performance (Costa et al., 2002). Several macro-level socio-economic factors such as rising oil prices, the SARS (Severe acute respiratory syndrome) crisis, frequent concerns about the eruption of bird flu, the Asian tsunami, and rising terrorism concerns have further impacted profitability, adversely. In 2006, the global airlines industry suffered a net loss of $500m, or 0.1% of revenues, accumulating net losses of $42bn between 2001 and 2006 (International Air Transport Association, 2007). In 2007, the airline industry made a modest net profit of $5.6bn on revenues of $490bn, equivalent to less than 2% margin (International Air Transport Association, 2008). The outlook from 2008 onwards remains bleak. Not surprisingly, the industry is regularly rated as one of the worst performing industries in the Fortune Global 500 rankings. In this industry environment, Singapore Airlines (SIA) has consistently outperformed its competitors (Heracleous & Wirtz, 2009). Copyright ‚ 2014 Shri Dharmasthala Manjunatheshwara Research Centre for Management Studies (SDMRCMS), SDMIMD, Mysore The case writer(s) Nilanjan Sengupta, Professor –HRM & OB and Mousumi Sengupta, Professor –HRM & OB may be reached at nilanjan@sdmimd.ac.in and mousumi@sdmimd.ac.in respectively. Author(s) have prepared this case as...
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...under the respected FedEx brand. FedEx Mission Statement (Excerpt) We serve the evolving distribution, logistics, and commerce needs of our customers worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners. UPS Mission Statement (Excerpt) UPS hubs in China as of 2009: Shanghai and Shenzhen FedEx hubs in China as of 2009: Guangzhou Figure [ 1 ] - Source: http://www.travelchinaguide.com/map/ Introduction June 18, 2004 marked the start of an important international trend in logistics and carrier services. The U.S. and Chinese government came to an agreement that allowed the development of air cargo hubs and landing rights for commercial airlines in China. This pact not only opened up extensive new opportunities for the airborne market in general, but gave FedEx and United Parcel Service (UPS) exclusive cargo transportation rights (Bruner & Carr, 2010). At the time, FedEx was winning the battle for China, with its Chinese volumes nearly doubling from 2003 to 2004. Despite this, rival UPS still held the title as the world’s largest package-delivery company, and had been active in China since the late 1980’s (Bruner & Carr, 2010). FedEx had only done business in China since 1995 (Roth). Because of the importance of China to the shipping and logistics industry, this paper uses the degree to which both FedEx and UPS achieved...
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...AND TACTICS………………………………………..………….24 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 6.7 Market Segmentation………………………………………..………….26 6.8 Target Market Profile……………………………………………………30 6.9 Positioning………………………………………………………….…….32 6.0 MARKETING STRATEGIES AND EVALUATION OF MARKET PROGRAM ELEMENTS………………………………………………………………………..33 Refferences…………………………………………………………………………………………………………….36 1.0 INTRODUCTION AND HISTORY a. Introduction of the product Name of the company: Air Asia Berhad ABOUT THE PRODUCT Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia’s largest low fare, no frills airlines. Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai Air Asia and Indonesia Air Asia fly from Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively. The airlines established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB –...
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...1) Introduction to the leader (autobiography or biography) Tan Sri Anthony Francis Fernandes CBE (born 30 April 1964; also known as Tony Fernandes) is a Malaysianentrepreneur and the founder of Tune Air Sdn. Bhd., who introduced the first budget no-frills airline, AirAsia, to Malaysians with the tagline "Now everyone can fly". He has since founded the Tune Group of companies. He rose to prominence by turning AirAsia, a failing government-linked commercial airline, into a highly successful budget airline public-listed company. Fernandes was also instrumental in lobbying the then-Malaysian Prime Minister, Tun Dr. Mahathir Mohamad in mid-2003, to propose the idea of open skies agreements with neighbouring Thailand, Indonesia, andSingapore. As a result, these nations have granted landing rights to AirAsia and other discount carriers. Early years Born in Kuala Lumpur to a Goan father, and Kristang mother, Ena Dorothy Fernandes.[2] At a young age, Tony used to follow his mother, a businesswoman, to Tupperware dealer parties and conventions. He was educated at Epsom College 1977-83 and then graduated from the London School of Economics in 1987. He worked very briefly with Virgin Atlanticas an auditor, subsequently becoming the financial controller for Richard Branson's Virgin Records in London from 1987 to 1989.[3] Tony was admitted as Associate Member of the Association of Chartered Certified Accountants (ACCA) in 1991 and became Fellow Member in 1996. Upon his return to Malaysia...
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...Background Anthony Francis Fernandes was born on the April 30th 1964 to a Goan father and a Kristang mother and raised in Kuala Lumpur. He graduated from the London School of Economics in 1987. He worked very briefly with Virgin Atlantic as an auditor, subsequently becoming the financial controller for Richard Branson's Virgin Records in London until 1989. Tony became the youngest managing director of Warner Music (Malaysia) Sdn Bhd and in 1992, became the Southeast Asian regional vice-president for Warner Music Group. When Time Warner Inc. announced its merger with America Online Inc. in 2001, Tony left to pursue his dream of starting a budget no-frills airline which AirAsia with the tagline “Now everyone can fly.” He also founded the Tune Group companies Tony Fernandes is a true visionary. For all the business that Tony was involved, he showed a clear picture into the future of these industries. Moreover, he exercised great judgment in decisions that change the situation, usually following at the most appropriate. When he was six years old, he announced that he will start an airline and his father who was a physician quoted to him "if you make past the doorman of Hilton Hotel, I will be happy". He did make past the doorman of Hilton and then did not stop there. Marketing is in his blood as his mother ran a successful direct-selling Tupperware business in Malaysia. Venturing into the AirAsia Business When he was studying in Epsom, a boarding school in southern...
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...Table of Content 1.0 INTRODUCTION 2 2.0 IN- DEPTH EVALUATION OF AIRASIA 3 2.1 Strategic Objectives of AirAsia. 3 Table 1: Objective evaluations of AirAsia 3 2.2 Strategic fit of Air Asia. 4 3.0 COMPETITIVE SITUATION 5 Table 2 AirAsia and its competitors’ profile 5 4.0 MARKET POTENTIAL & MARKET ATTRACTIVENESS 8 Table 3: Market attractiveness from a macro perspective 8 Table 4: Market attractiveness from a micro perspective 9 Table 5: Porter’s Five Forces for AirAsia 9 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 11 5.1 Market Segmentation 11 Table 6: Market Segmentation of AirAsia 11 5.2 Target Market Profile 14 Table 7: Target Market Profile of AirAsia 14 5.3 Positioning 15 Figure 1: AirAsia’s Perceptual Map 15 6.0 CUSTOMER ANALYSIS 17 7.0 INTERNAL CAPABILITIES & CORE COMPETENCIES 19 Table 8: Comparison of Malaysia’s Top Players in Low Cost Carriers’ Marketing Program 20 9.0 FINANCIAL AND MARKETING EVALUATION OF AIRASIA 23 9.1 Evaluation of AirAsia’s financial status using 2007 and 2008 annual reports 23 Table 9 : AirAsia’s financial status in 2007 and 2008 23 9.2 Financial Evaluation for AirAsia as compared to Malaysia Airline [MAS]. 24 Table 10 : AirAsia’s financial status as compared to MAS in 2007 and 2008 24 9.3 Marketing Metrics 25 Table 11: Marketing metrics 25 10.0 PROBLEM IDENTIFIED AND THE ALTERNATIVES 25 11.0 REFERENCE LIST 27 1.0 INTRODUCTION AirAsia is a low cost carrier...
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...nationally and internationally. Qantas’ business is mainly constructed by the transportation of customers using both their airline brands Qantas and Jetstar as well as operating in other subsidiaries such as Q catering, frequent flyer, freight enterprises as well as other airlines (Qantas, 2013). It employs 33,000 people with 93 per cent of these employees being based in Australia (Qantas, 2013). Recently, Qantas has undergone changes that have threatened and seen Australians question if Qantas will remain an Australian brand. Reports have demonstrated 1000 jobs being cut due to restructuring of international arms as well as the decision to move Australian jobs offshore. Qantas has implemented plans to strengthen international ties particularly in Asia by funding start up airlines internationally. The global market is continuously evolving and as Bernard et al. stated ‘firms that are engaged in international trade are larger and more productive than the ones that serve only domestic markets’ (2007). However, the Federal transport Minister Anthony Albanese has stressed that “it is very important that Qantas reassure the Australian public that it regards itself very much as the Australian icon” (ABCnews, 2011). Qantas is an Australian company that has increased their operations in the global world. Therefore, macro-environmental factors such as political, economic and environmental factors impact Qantas’ product, price, place and promotional strategies....
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...Situation 3 2.1. External Environment Analysis 3 2.2. Internal Environment Analysis 5 2.2.1. The Market 5 2.3. Industry Analysis 5 3. SWOT Analysis 9 3.1. Implication of Analysis 10 4. Competitor Analysis 10 4.1. Brand Competitors 10 4.2. Strategic Group Matrix 10 5. Objectives 10 5.1. Short-Term 10 6. Growth Strategy 11 6.1. Ansoff’s Product/Market Matrix 11 7. Competitive Strategy 12 7.1. Branding Strategies 12 8. Implementation 12 8.1. Schedule – Time Line for Strategic Planning 12 9. Evaluation & Control 13 9.1. Balanced Scorecard Analysis 13 10. Bibliography 14 11. Appendix 14 1. Executive Summary Tiger Airway, a carrier offering budget air travels in aviation industry within Asia, faces imminent threat of maintaining sustainability with increasing competition from emergence of various budget carriers within the region and escalating fuel cost. The report will highlight the challenges affecting Tiger Airway by assessing Tiger Airways performance and analyzingthe external and internal factors influencing the performance of Tiger Airways. From the analysis, the report willrecommend on developing strategies and alternative strategies for Tiger Airway to adopt to address to the key challenges facedcurrently and to strategized for future growth and maintain sustainability. The report will then discuss on the implementation plans for the strategies recommended and suggest on evaluation parameters to...
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...associated problems of unemployment, poverty, inadequate health, poor sanitation, urban slums and environmental degradation pose a formidable challenge in many developing countries. Available statistics show that more than half of the world’s 6.6 billion people live in urban areas, crowded into 3 percent of the earth’s land area (Angotti, 1993; UNFPA, 1993). The proportion of the world’s population living in urban areas, which was less than 5 percent in 1800 increased to 47 percent in 2000 and is expected to reach 65 percent in 2030 (United Nations, 1990; 1991). However, more than 90 percent of future population growth will be concentrated in cities in developing countries and a large percentage of this population will be poor. In Africa and Asia where urbanization is still considerably lower (40 percent), both are expected to be 54 percent urban by 2025 (UN 1995; 2002). Although urbanization is the driving force for modernization, economic growth and development, there is increasing concern about the effects of expanding cities, principally on human health, livelihoods and the environment. The implications of rapid urbanization and demographic trends for employment, food security, water supply, shelter and sanitation, especially the disposal of wastes (solid and liquid) that the cities produce are staggering (UNCED, 1992). The question that arises is whether the current trend in urban growth is sustainable considering the...
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...consumers’ brand awareness is that of designer handbags. Each designer bag is made of high quality materials with all or some elements hand stitched by craftsmen, thus contributing to their fine workmanship and premium prices. According to the Louis Vuitton website, the company’s mission statement is as follows: “The mission of the LVMH group is to represent the most refined qualities of Western "Art de Vivre" around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy (Lagerfeld, Group Mission and Values)”. The company’s January 2014 press release showed a 4% increase in recorded revenue- €29.1 billion despite the 4% decrease in fashion and leather goods (LVMH, Press Release). Potential...
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...Case Study This case study relates to the appointment of a new Chief Executive Officer (CEO) for the global logistics firm TNT Express. Copy of a Press Release statement: 25 February 2013 07:30 CET - Amsterdam, the Netherlands – The Supervisory Board of TNT Express has today announced the appointment of Tex Gunning as CEO. "Tex’s extensive business experience and track record in successfully turning around businesses and delivering results make him the ideal candidate in this critical time for the company," said Antony Burgmans, Chairman of the Supervisory Board. "He is also an inspiring leader and we look forward to Tex stepping into his new role and helping the company realise its improvement plans. Tex Gunning said: "I am honoured to be part of TNT Express and look forward to leading the company with others and, with support from the extended management team." The Business Courier Market The global business courier market is dominated by several large organisations, these include the often familiar names such as FedEx, DHL, TNT and UPS. All of whom operate across the globe and offer express delivery services primarily to business customers. On a national level many of these organisations will compete against the home country mail providers (e.g. Royal Mail in the UK, or Hong Kong Post in HK) and many smaller nationally based organisations (e.g. City Link in the UK) and the several thousand freelance, self-employed independent courier delivery services. Unless...
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...technological expertise has lent itself to many new products and applied technologies. Moving forward into the 21st century, LG continues to on its path to becoming the finest global electronics company, bar none. [pic] LG Electronics 50-year History [pic] Download (PDF, 21.0mb) [pic]1958 Founded as GoldStar [pic]1959 Produce Korea's first consumer radios [pic]1998 Introduce the 60-inch plasma TV [pic]1999 Forge joint venture with Philips [pic]2003 Enter UK GSM handset market [pic]2005 Develop 3G UMTS DMB handset [pic]2007 Launch HD disc-player and drive 1958 Founded as GoldStar 1960's Produces Korea's first consumer radios, TVs, refrigerators, washing machines, and air conditioners 1995 Renamed LG Electronics Acquires U.S.-based Zenith 1997 Introduces world's first CDMA digital mobile-handsets, supplied to Ameritech and GTE in the U.S. Achieves UL certification in U.S. Develops world's first IC set for DTV 1998 Unveils world's first 60-inch plasma TV 1999 Establishes LG Philips LCD, a joint venture with Philips 2000 Launches world's first Internet refrigerator Exports synchronous IMT-2000...
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...intercontinentally, using waterways such as rivers and inlets to transport people and goods from one destination to another without crossing over oceans. An example of this would be using the Mississippi River as a trade route to transport goods from Canada to the Gulf Coast. Though Short Sea Shipping has been around for centuries, today’s over-congestion of North American highway trade and travel has created a greater demand for this method of transportation. It has already proven to be a successful mean of shipping and is currently at the forefront of Europe’s transportation system. The use of this type of shipping has many benefits, including: the potential to alleviate air pollution, reduce accidents and congestion on our freeways, while also saving the shipping companies money. International trade between Asia and the United States’ West Coast ports, transiting through the ports of Los Angeles and Long Beach, is expected to double in volume in the next fifteen years (ESCAP 2010). These greater volumes of commercial traffic are adding to congestion and environmental pressures on landside transportation systems, particularly those associated with the major urban regions on the West Coast. Short Sea Shipping could be considered as a possible strategy for alleviating landside congestion from commercial traffic in Weston 2 urban areas. Short Sea Shipping is a viable strategy within a regional port system. Focusing on specific commodities and goods, a...
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...Hawaiian Air Case Preliminary Questions: Assessing Hawaiian Airlines’ Business 1. Factors to use to think about buying HA’s stock: Customers – 2014 marked the first year that Hawaiian carried more than 10 million guests in a single year which is 80% higher than 10 years ago. The most emerging tourism market for the airline is China which is the reason that the airline added a triweekly service from Beijing to the islands. Although this market seemed to be booming at the end of 2014, the decrease of economic growth in the country recently could hurt the tourism market from China. The customers of Hawaiian are not all identical which makes it critical that the airline’s business is not dependent upon a single or few customers and the loss of any one customer would not have a huge effect on Hawaiian’s business. Cost Structure – The greatest and most important cost for Hawaiian is the cost of airline fuel. Operations are significantly affected by the availability and price of jet fuel. The lower the fuel, the better for the airline as it is more cost effective, however, because of the binding hedging contracts that the company has to protect itself against low fuel prices, costs will not be cut as much as assumed. Recently, the appreciation of the US dollar, and extremely low oil prices (fuel prices) have cut costs for Hawaiian and other airlines nationwide, and in 2014 Hawaiian consumed more gallons of fuel than in 2013 or 2012 and still maintained lower fuel costs in both...
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