☆ بِسْــــــــــــــمِ اللهِ الرَّحْمَنِ الرَّحِيْـــــمِ ☆
CASE STUDY: AIRASIA - NOW EVERYONE CAN FLY
( October 2009 - Part D )
There are five (5) of competitive advantages used by AirAsia are:
1. Developing new products or services.
2. Entering new markets.
3. Increasing customer loyalty.
4. Attracting new customers.
5. Increasing sales.
Porters's generic strategies were applied by AirAsia in the case study and and examples is:
Cost Leadership
Cost leadership has a low cost and broad market. Air Asia competes by offering a broad range of products at low price. Its business strategy is to be low cost provider of goods for the cost-conscious consumer. For example, Air Asia operates scheduled domestic and international flights and Asia's largest low fare, no frills airline. Air Asia pioneered low cost travelling in Asia.
Buyer Power
Buyer power is the ability of buyer to affect the price they must pay for an item. For example, Air Asia operates with the world's lowest unit cost of US$ 0.023/ASK (available set per kilometer) and a passenger break-even load factor of 52% .
Supplier Power
Supplier power is the suppliers' ability to influence the prices they charge for supplies (including
materials, labour, and services). For example ,AirAsia currently the main customer of the Airbus
A320. The company has placed and order of 175 units of the same plane to service its routes.
No comments:
Post a Comment