Past year october 2009 - PART D CASE STUDY : AIRASIA - NOW EVERYONE CAN FLY

QUESTION 1

Five (5) of competitive advantages used by AirAsia

1)  Air Asia is a largest low fare.
2) Air Asia the first airline in the region to implement fully ticketless travel and unassigned seats.
3) Air Asia will strengthen and enhance its route network by connecting all the existing
4) Air Asia 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 and has flown over 55 million guests
5) AirAsia operates with the world's lowest unit cost and a passenger break-even load factor.

QUESTION 2

Which of the Porter's generic strategies were applied by AirAsia in the case study and explain with examples.

  

-Cost leadership are strategies that applied by AirAsia because it requires lower cost, broad market and satisfy customer's requirement.

-AirAsia promoting their slogan ''everyone can fly'' with lower cost to fly everywhere we want.So, everyone with different level now can go travel to anywhere they want with lower price of ticket they offer.

-They focus this strategies to broad market for example 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 and India. The airline will focus on developing its hubs in Bangkok and Jakarta through its sister companies, Thai AirAsia and Indonesia AirAsia.

-They satisfy customer's requirement with offer that they provided. For example they give good services to customer in term of price ticket, online booking ticket, treat customer with fair and equitable. So, they satisfy what customer want and need.

QUESTION 3

Based on Porter's Five Force Model, analyze AirAsia's buyer power and supplier power.

AirAsia's buyer power

•  buyer power high when there many choices of whom to buy from and low when their choices are few. For example the buyer power is high when customer get many choice from other airline to travel and lower the buyer power when customer not have choice from other airline to travel.To reduce buyer power, AirAsia need do the loyalty program. For example, appreciate their regular customer by giving reasonable discount or prize holiday.

AirAsia's supplier power

• high when buyers have few choices of whom to buy from and lower when their choices are many. For example AirAsia have high supplier power when they are the only airline that offer ticket at lower cost and lower supplier power when they have competition from other airline.Through market B2B marketplaces, the supplier power can be reduced. AirAsia use private exchange because they are currently the main customer of the Airbus A320. The company has placed an order of 175 units of the same plane to service its routes.