AirAsia's Growth & Change Management
Added on 2020-03-07
12 Pages3319 Words483 Views
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Running Head: Business strategy 1Business strategy of Air Asia
Business strategy 2ContentsIntroduction......................................................................................................................................3Company background..................................................................................................................3Vision and mission statement..........................................................................................................3Key success factor analysis.............................................................................................................3Customers’ expectations..............................................................................................................3SWOT analysis................................................................................................................................4Porter generic strategy.....................................................................................................................5Cost leadership strategy...............................................................................................................5Differentiation..............................................................................................................................6Cultural web theory.........................................................................................................................7Example.......................................................................................................................................8Benchmarking..................................................................................................................................8Types of changes.............................................................................................................................9Examples....................................................................................................................................10References......................................................................................................................................11
Business strategy 3Introduction Air Asia is a very popular company in airlines industry across the whole Asia and isobviously the market leader in that industry. The company is famous for its low cost and goodquality services. To maintain its brand, Air Asia must be able to compete with its competitorsand new entrants of the industry. For this it has to adopt some kind of strategies. The companyused to have clear goals which enable the members of the company to work hard and achieve theshort term and long term goals of the company. Air Asia usually adopts planning and newstrategies to overcome the problems related to its operation (Shaw, 2012). Company backgroundInternal and external revaluation of Air Asia shows that the company is getting above 2.5score from both the evaluations. It clarifies that the company doesn’t affected by internal andexternal factors and which is really a very good sign for Air Asia. These external and internalfactors also help the company to decide its future plans and strategies. After identification andevaluation external and internal factors, the company adopts further steps of with matrixevaluation. Matrix evaluation involves five matrixes namely TOWS, space, Boston ConsultingGroup (BCG), Grand, internal- external and competitive profile matrix (Shuk & Waring, 2010). Vision and mission statement The vision of Air Asia is that it wants to be the largest low cost airline in Asia as it wantsto serve 3 billion people who are due to bad connectivity and high fares are underserved. Thecompany desire to provide world class services to its passengers at low cost and at same time itwants to encourage Malaysian hospitality and local food. The company decides to charge lowestfares from customers and to keep focus on its customers. The company’s mission is to becomethe world’s best employer with lowest cost budget and providing highest quality services to itscustomers.
Business strategy 4 Key success factor analysisCustomers’ expectations Due to the advancement of the technology, it is difficult for the Air Asia to get success inthe airline industry. The expectations of the customers are continuously changing. By analyzingonline shopping experience of the customers, airlines can be able to understand the needs andexpectations in the market (Clemes et al, 2008). If the customers do not shop online, then theairline will be able to meet their expectations. It means the airline will be able to expand itsbusiness anywhere in the world. For example, how long time the airline take to respond thequery of the customers. If the company is able to respond quickly, then company will get highlevel of profit (Ze & Ng, 2008). SWOT analysisFollowing are the strength, weakness, opportunity and threat of Air Asia. This analysiswill help to examine the present and future state of the company in global market place.Strength:The key strength of Air Asia is that the company has low organizational and upholdingcost due to the low cost fare model adopted by the company to enhance its satisfaction level ofthe customers. Online reservation systems, quick check, no frill are some of the elements whichhelp the company in reducing its operational cost. There is also very strong management team tomanage the business effectively. The operational activities of the business are managed by theex-director of Ryanair who has high level of knowledge of cutting the operating cost incurred inthe airlines. Further, the company has good technological environment and infrastructure that issupportive in operating the business of airline in the market of low prices. The key power of AirAsia is breakeven load factor of 52% and the low traveling cost in the world (Fifield, 2012). Weakness:The main weakness of the Air Asia is that there is the need huge amount of investmentsfor the implementation of latest technology. Along with this, increased fuel prices are also majorhazard for the airline because it will impact the various cost incurred in the airline. Because ofthe low cost approach, company has fewer numbers of employees as compared to other
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