...Introduction Air Asia has successfully been xpositioned itself in the market as one of the leaders in the airline industry in Asia with its technical strategies. It has a route network that spans through over 20 countries and is one of the low cost aviation services in Asia. The Business level strategy adopted by air Asia is cost leadership strategy. To gain its market share they focused on specific markets like domestic services, short and long haul regional services and selling their products below the average industry prices. Air Asia adopted a number of actions to compete in the industry. It launches the values added services which are to provide ticketless travel and implement a free seating policy. In 2007 air-Asia became the first airline in Malaysia to offer internet checking services that allowed all the passengers to print their own boarding passes and pay extra money to board first. So, by doing this the passengers can choose their seats easily. In addition, they can also pre-book their checked baggage and meals. This paper describes Air Asia’s each xstrategies that maintain its effective control of low cost/focus business level strategy. Air Asia’s structure, cultures and systems that are used to create loyalty of the customers and satisfied them to lead the organisation to be profitable. SWOT analysis is conducted to focus aspects of Air Asia and business sector. It also evaluates the current business, future prospects and the economic climate. Porter's five force...
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...international joint ventures conducted by one of the world best low cost airlines, Air Asia, through their operation years. In particular, Air Asia Indonesia, Thailand, Expedia and Air Asia Japan are being chosen to probe into This research put priority on the factors that turn Air Asia Indonesia, Expedia and Air Asia Thailand into a success throughout their operational year. The Successful International Joint Ventures of Air Asia have gained themselves the benefits from acquainting the right market orientations, in which they have secured a great amount of customers respectively. This leads Air Asia Indonesia and Air Asia Expedia to gain a massive profit and become the dominant airline being in their respective nations. Besides, the commitment is also one of the main contributing factors to the success of Air Asia IJV as well as Economy conditions of host countries had been a major factor to success in IJV. In depth analysis of local GDP of Thailand had granted Thai Air Asia to achieve their business objectives. Throughout the research, it shows that Air Asia Expedia and Thai Air Asia and Indonesia Air Asia have spared no efforts in order to succeed in the aviation industry. Conversely, this research also identified a failed IJV in Air Asia operation with Japan. The main reason behind this failed IJV was usage difficulties found in online booking website of Air Asia. These factors have led to Air Asia Japan to suffer losses throughout their operation. Moreover, misunderstanding...
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...Management Information System Case Study Report Name : Angela Tanasha Class : BA XIV-52 Student ID : 13.53.01.0017 Table Of Content 1. Introduction 1 1.1 Objective of the report 3 1.2 Scope of the report 3 1.3 The Importance of Computerized MIS on Budget Airline 3 2. Body 4 2.1 PEST (International, Demographical) Analysis 4 2.2 SWOT Analysis 11 2.3 Porter’s Value Chain 13 2.4 Competitive Analysis / Porter’s 5 Forces 14 2.5 Online Reservation System 18 3.0 Recommendation 20 4.0 Conclusion 21 Reference 22 1. Introduction An organized approach to the study of the information needs of an organization's management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner. In a management information system, modern, computerized systems continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose. The main purpose of the MIS is to give managers feedback about their own performance; top management can monitor the company as a whole. Information displayed by the MIS typically shows "actual" data over against "planned" results...
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...Evaluation of air asias response to tourism Executive summary Air Asia, the market leader of low cost carriers in Asia, shown on the good record of bringing about innovative idea into the industry. The industry itself, especially in the Asian region, is observing a higher growth rate of passenger and profitability. The report examines the organization’s key business structure and operation, products and provides summary analysis of its key revenue lines and strategy. The analysis looks at the impact of external and internal factors on the organization, and evaluate it responses. Essentially SWOT and PESTLE analysis provide a simple framework through which strategic options can be identified in which Air Asia operate. The SWOT process will start by examining the strengths of the Air Asia of today. One of the most dominant strengths possessed by Air Asia is the adding of new Airbus A320 aircraft to its fleet. Airbus A320 gives Air Asia the largest, youngest and most modern fleet in the region. Another strength of Air Asia is the upgrading of the online booking system, in which will offer the ability to passenger to check in online and printing out boarding passes. An opportunity available to Air Asia is fastest growing market in China and India. Both countries give a huge opportunity for Air Asia to expand its business in the region. In the threat part of the analysis is concerned with identifying parts of the Air Asia that might affect its business performance. In recent years...
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...PEST and SWOT analysis of AirAsias international business operations 1.1Background AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our philosophy of ‘Now Everyone Can Fly’, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As AirAsia continuously strives...
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...Business STRATEGIC 1. How can a company overcome the limitations of being in a fragmented industry? Fragmented industry consists of many small and medium sized companies or firms. There is few scale economies and hence large company cannot have advantage overall advantage. Furthermore the lack of scale economies low barriers to entry characterize many fragmented industries and new entry keeps the industry fragment.. Similarly transportation cost may keep the industry fragmented. Entrepreneurs are eager to gain the cost advantage of pursuing a low cost strategy of a fragmented industry. The required rate of return from consolidating industry is often huge. A fragmented industry is a sector of business without a distinct industry leader to control market trends. This business phenomenon happens frequently in local markets with small businesses, including restaurants, auto repair shops and construction companies. A small business owner can use several proactive strategies to overcome industry fragmentation and begin to distinguish her company in the minds and wallets of consumers. A fragmented industry is an entrepreneur's dream, and offers unbelievable opportunity compared to more homogeneous industries. Restaurants, Home Improvement Outlets and Homebuilders, and other Mom-and-Pop endeavors are good examples. Tons of small competitors and no consistent supply chain. Compare this to the a handful...
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...asia------------------------------------------------- the AirAsia Company strategic management: “ How AirAsia can be a leader in the lowest cost carrier in the airplane industry” August 31, 2009catatanraufmenduniaLeave a commentGo to comments 1.0 Introduction “Without a strategy the organization is like a ship without rudder, going around in circles”. (Joel Ross and Michael Kami) Nowadays, the competition among airplane industries is very tough. According to Daniel Chan (2000), with just about two years to go to the turn millennium, air wars over Asia are hotting up, with some of the world’s biggest airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their competitors. To compete with their competitor in the business environment, a company needs to make a strategy to achieve their long terms objective and can be successful for doing their business. Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management, because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their business. Regarding this issues, the strategic management becomes important due to the following reason such as globalization to survival their business, and...
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...Company Background and analysis of AirAsia This report conducts an analysis of AirAsia, the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom, a government owned- conglomerate. On 2 December 2001, the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest Airlines and proposed to start a Low-Cost Carrier but the government refused to issue a new license and requested Tony to buy an existing airline. Hence Tune Air set up by Tony and his investors bought Air Asia for a token sum of RM1. Before 2001. AirAsia failed to attract enough passengers from Malaysia Airline to establish its own stand in the market. The turning point for AirAsia was in 2001 subsequent to its purchase by Tony Fernandes. Tony Fernandes enrolled low-cost airline experts to restructure the business model of AirAsia. He invited Connor McCarthy, formerly the director of the group operation Ryanair, to join his executive team. In the late 2001, AirAsia airline was re-launched in Malaysia as trendy, no-frills operation with three B737 aircraft as a lowfare, low-cost domestic airline. AirAsia’s simple slogan “Now Everyone Can Fly” has won the heart of customer’s. AirAsia’s profit for the second quarter (i.e.,ending 31 december 2004) was reported RM 44.4 million, which is a 323 %...
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...current situation facing MAS and Air Asia using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place. The goal of an organization is to reach and achieve optimal purpose. They want to make the most out of their atmospheres and existing environments in order to their accomplishment. External factors are the one that affect an organization indirectly, such as: •Political •Social-cultural •Technological •Economical •Legal External factor are the opportunities and threat to the company according to SWOT Analysis. There also Internal factors which need to be considered, that is which involves directly to an organization such as: • Customers • Competitors • Suppliers • Public • Employees • Shareholders and etc. Internal factors – The strengths and weaknesses to the organization. This business strategy theory is very useful to help aviation researchers to make sense the current competitive pressure under which airlines all around the world seem to be. Business Strategy is a formulation of how the business unit intends to compete in its given business sector. Let us look the comparison between Mas and Air Asia in terms of their Internal and External Factors. Malaysia Airlines (MAS) The Malaysian Airlines are tightly regulated by the government of Malaysia. Mas have won more than 100 awards in the past decade including the „Best Airline to Asia‟ and „World” Best Cabin Crew‟. It...
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...Financial statements identify for us a multitude of figures, for example, gross profit, net current assets etc. However, these figures do not mean very much unless we can compare them to something else. There are several ratios help analysts interpret financial statements by focusing on specific relationships, such as profitability ratio, liquidity ratio, efficiency ratio, ratio and market value ratios etc (Alexander & Britton, 2004). Profitability Ratios 1. Net Profit = (Net Profit / Sales) x100% Net profit margin has increased indicating benefit gained from control of expenses or increased sale prices volume of trade (Alexander & Britton, 2004). The higher, the better. | |2011 (RM) |2012 (RM) |2013 (RM) |2014 (RM) | |Net Profit |555,324 |1,831,338 |362,124 |82,836 | |Sales |4,495,141 |4,946,091 |5,111,822 |5,415,744 | |Net Profit Margin (%) |12.35% |37.03% |7.08% |1.53% | 2. Return on Capital Employed = (Net profit / Capital employed) x 100% Return on capital employed ratio identifies how much profit the business has made from the capital invested in it (Alexander & Britton, 2004).The higher, the better. | |2011 (RM) ...
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...and Law International Business Strategy Analysis Group Assignment (35%) INB70012 Global Business Strategy Semester 1, 2015 Strategy Analysis of AirAsia Convenor : Dr Aron Perenyi & Lecturer Students : Natalia Knets Emma Dalton Gautham Raju Markus Arian Shakoor (1704583) * Executive Summary * Content page Executive Summary II Content III Figures IV 1 Introduction 1 2 Mission, Vision and Core Values 1 3 External Environment Analysis 2 4 Internal Environment Analysis 4 5 Current Strategy Analysis 7 5.1 Corporate and International Strategy 7 5.2 Business Strategy 9 6 Strategy Fit 9 6.1 Financial Performance Analysis 9 6.2 SWOT Analysis 11 7 Strategy Recommendations 14 References 15 * Figures page Figure 1: Structure of AirAsia 8 Introduction AirAsia is a Malaysian low-cost carrier (LCC) and has been established in 1994 by DRB-Hicom. In 2001 Tony Fernandes took over the company and remains the CEO of the AirAsia Group. Fernandes turned the company from a small airline with two aircrafts operating to one destination with 250 staff (AirAsia 2015a) into the number one LCC operating in Asia. Today it operates on 132 routes, connecting 65 destinations in 18 countries with over 8,000 staff (AirAsia 2015b). The group services almost 12 million passengers per year with 171 aircrafts (AirAsia 2015c). This report provides a comprehensive strategy analysis of Air Asia. First the mission, vision and core values...
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...INTRODUCTION Qantas is the acronym of the Queensland and Northern Territory Air Services. Qantas is the world's second oldest airline and was founded in the Queensland outback in 1920. It is Australia’s largest domestic and international airline and is recognised as one of the world's leading long distance carriers. It has pioneered services from Australia to North America and Europe. The Qantas Group today employs approximately 32,500 people and offers services across a network spanning 182 destinations in 44 countries (including those covered by codeshare partners) in Australia, Asia and the Pacific, the Americas, Europe, the Middle East and Africa. [16] The Qantas Group’s main business lies in the transportation of passengers via two complementary airline brands – Qantas and Jetstar. The Sub-divisions of the brands are shown in the figure below: In addition to the airline brands, the Qantas Group operates Qantas Frequent Flyer and Qantas Freight. The Group has additional equity interests in airline and airline-related businesses. Qantas is also a partner with Australia Post in two jointly controlled entities: Australian air Express and Star Track Express, a national road freight business. [12] The Qantas Group’s long term vision is ‘to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.’ [13] To achieve this, the Group is focused on five key elements: * Safety is our first priority * Right aircraft, right...
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...assignment, a well-known organisation within the hospitality, events and tourism industry – Shangri-La Asia Limited (SLA) is chosen to conduct a SWOT analysis and potential strategic through the use of TOWS matrix. To further accomplish the learning outcome of this assessment, external and secondary research had been carried out through the use of internet, books and journal in completing the report. The SWOT analysis of Shangri-La Asia Limited is further divided into sections. In strength and weakness, it described the brand reputation of the company and its difficulties in expansion on different culture market respectively. Moreover, opportunities and threats is further been analysed into the growing demand of market and increasing labour cost in Mainland China. Furthermore, a TOWS matrix is created and potential strategic is strongly analysed based on the SWOT analysis. As such, it also look into strategic for Shangri-La Asia Limited (SLA) in overcoming the difficulties in culture difference and taking advantage of its brand reputation for expansion. Lastly, strategic such as being cost effective and revising job description of position is been look into. Table of Contents Executive Summary 1 Introduction 3 Analysis 4 Company Overview 4 Company History 4 SWOT 5 Strength 5 Strong brand image and reputation 5 Business geographically diversified in Asia-Pacific 6 Weakness 7 Difficult in expanding market across different culture market 7 Increasing...
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...Executive Summary This report provides an analysis and evaluation of Air New Zealand. Method of analysis this report is SWOT analysis and five forces module. Other analysis includes deep investigation on company profiles. The report founds the weakness and strength in the company and examines internal and external factors that might influence the survivability of Air New Zealand. The report will explain how Air New Zealand handles the pressure from every competition they faced until today. All strategies will be discussed in evaluation section of this report. In addition to the conclusion of evaluation; this report will also answer the case studies that being related to Air New Zealand, they are: 1. Discuss how barriers to entry in the airline industry have changed in the past decade. 2. In light of such lowering of barriers, what opportunities are there for there for Air New Zealand to pursue? 3. Air New Zealand must consider different stakeholders in its pursuit of corporate strategies. Identify the key stakeholders and their concerns Introduction Air New Zealand Limited, is the national airline and flag carrier of New Zealand. Since the appointment of Ralph Norris as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. Structural changes in the marketplace made a new direction indispensable and Air NZ is now turning away from inflexible service offerings to align its route...
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...Unit 401 Marketing | Qantas Assignment | | | | | | | Table of Content: Subjects Page Introduction 3 Marketing Planning and Auditing 4 SWOT Analysis 5 Macro Environment 6 Micro environment 7 Marketing Research and Marketing Intelligence 8 Segmentation 9 Marketing Positioning 10 Buyer Behavior 11 References 12 Introduction: The Airline companies now a day are mainly depending on marketing to attract new customers and to maintain sustainable relationships with them by promotions, Rewards and Loyalty programs. Qantas is one of those biggest and oldest airlines in the world who managed to keep making profit out of their businesses but still need to keep this profit despite all the challenges and competitions they are facing. By Good planning, have a clear company objective and by Analysis Qantas will guarantee keeping its Group in constant level but the world is changing and buys are effected by those changes so Qantas has to keep between its eyes those variables and act based on it. Marketing Planning and Auditing: Marketing planning is a series of activities and systematic processes used after the setup the main objective for an organization and those steps guides how to achieve the organization goals. Marketing Auditing is part of marketing planning process and it is conducted in the beginning of the planning process and it continue analyzing while implementing the...
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