Case Study: Air flow Asia

 Case Study: Surroundings Asia Dissertation

Problem Declaration

AirAsia's efforts to spend its services offering in long-haul travel arrangements and increasing additional reputation and business is according to owner Tony a2z Fernades' organization goal; yet , the strategy changes necessary to be a successful long-haul flight significantly vary from and turmoil with its current resource bottom (i. electronic. aircraft types, hubs, worker skills) and core competencies and features (i. e. cost and efficiency optimization/utilization) as a cheap carrier (LCC) airline. Research

The aircarrier industry overall is quite competitive with multiple players and various factors effecting the industry environment. AirAsia has created a specific set of resources and core competencies that it provides exploited in order to be the leading short-haul LCC in South East Asia. AirAsia's strategy uses cost and efficiency marketing by utilizing its key solutions; thus, owning capabilities necessary for success.

AirAsia's tangible assets, including their fleet and hubs, improve the company's inexpensive capabilities. Because of AirAsia's selectivity in the type/model of aircrafts it purchases, both cost and effectiveness can be capitalized. By constraining the variability in aircrafts, AirAsia is able to obtain financial systems in getting, its pool for aftermarket is simplified, thus minimizing costs; technicians and pilots' specialized familiarity with the planes increases allowing for greater effectiveness and reduced cost in protection, repairs, and flying. Though this strategy is ideal for AirAsia being a short-haul LLC, it is not transferrable to long-haul flights. Simply by expanding into the long-haul market, AirAsia is necessary to increase their resource basic adding newer, larger airplane models in return requiring development of spare parts, loss of getting economies (until sufficient growth has been achieved), additional teaching and lack of specific specialised knowledge possessed by pilots and technicians resulting in increased costs and reduced efficiencies. AirAsia's expansion and expansion has led to adding hubs in densely populated Southern East Aisan cities. Nevertheless , as a cost benefits measure AirAsia utilizes extra airports making competitive benefits. This strategy is usually transferrable to long-haul plane tickets; however , it can be reasonable to presume (based on AirAisa's proposed development plan on site 628) AirAisa's long-haul travel arrangements will be needed to fly into larger airfields and rental terminals in order to accommodate customers' needs, thus increasing costs. Additionally , even more risk revolves around the fact that expansion into long-haul flights would cause a significant increase in competition with reputable and established global airlines. Furthermore, such enlargement places AirAsia in immediate competition with government reinforced Malaysian Flight companies (pg. 627). Although the idea of expansion in long-haul foreign flights can be appealing, the hazards involved with strong industry competition as well as the unsustainable low cost strategies should be a prevention to AirAsia's long-haul growth. Additional clashes exist between LCC approaches and long-haul success elements. AirAisa offers thrived as an LLC based on the reduction of extrenious costs, thus an elimination of " frills” or amenities. The " no frills” technique is very lasting for short-haul flights (under 3. a few hours) mainly because customers' demands are little and therefore expectations are achieved, meanwhile adding superior customer satisfaction to the mix flyers leave extremely satisfied. Yet , on for a longer time flights, insufficient " frills”, amenities and comforts can result in flyers' negative understanding of the flight. Although a flyer may well initially believe a low cost, lengthy flight with no amenities is definitely palatable, it's likely the flyer will end up disappointed with lack of options while in the air; once again a low cost strategy that is not likely to remain environmentally friendly in the long-haul market. With AirAsia's execution of point-to-point flights,...


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