A strategic service vision for Air Asia Bhd.3
Target Market Segment3
Service Delivery System3
Winning Customers in Marketplace.5
Cost leadership in the budget hotel industry and Air Asia Bhd.6 References8
A strategic service vision for Air Asia Bhd.
The major purpose of a strategic service vision is to serve as the vision of a place and purpose of the company as well as to link the entrepreneur’s idea and the unmet needs which will eventually allow the company to achieve its goals. (Fitzsimmons and Fitzsimmons 2010) Service vision includes main categories: target market, service concept, operating strategy, and service delivery system. Target Market Segment
Air Asia creates values through vision and mission. First of all, vision of Air Asia is to be the largest low cost airline and serving the 3 billion people who are currently underserved with poor connectivity and low fares. It is clear that, the Air Asia is selling the airline service company. Hence, characteristic of the Air Asia’s target audience is the all people who salaries are fall in the middle or lower earnings in Malaysia. That is the reason why the Air Asia always use the low price strategic to place it is always cheaper than their competitors. Secondly, it also target to the age group who are young adult and above because this kind of age group have the ability to spending and may be always need a flight to other far destination in shorter time. So, they will easily attract and influence by the promotion doing by the Air Asia which only RM0.99 for a flight. This kind of target market will easily shift to other competitors who also offer the lowest price or doing a sales promotion. In terms of service concept, Air Asia is the one of the largest airlines in Asia. Thus, Air Asia has short flights with frequent departures, and uses inner-city or low traffic airports to avoid congestion, plus carry-on luggage. In fact, Air Asia’s major target section is originally geared towards low-middle revenue earners, budget travelers and regular short-haul flyers such as overseas workers, contractors, and students. (Onwutalobi 2008) Service Delivery System
Well, how Air Asia delivers service? It is clear that, Air Asia has fostered a depency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. Furthermore, Air Asia hire cabin crew based on attitude and use a vast amount of aircrafts to control maintenance and operational cost. In addition, the key objective of low cost carriers is to increase their reach and provide the services to a large segment. Hence, in the terms of service delivery, Air Asia mostly uses technology and it allows them to provide barriers to entry by competitors and differentiate the service from competitors. At all, E-ticketing seemed to be a ‘win’ solution for Air Asia. It offered the company a chance to make considerable savings in both trade terms as well as in invoicing and internal accountancy procedures. Secondly, it was very attractive to customers, who may benefit from a service offer both technologically advanced and of high intrinsic value. Air Asia produces important cost savings by sending information using Internet, rather than by post or fax. To sum up, Air Asia mostly uses modern technology to operate and deliver service. Air Asia put into practice lean allocation by relying on internet as a main method of distribution while reducing the dependence on travel agents and sales offices, as opposed to full service airlines which usually used all distribution channels. (Air Asia 2011). Operating Strategy
Next point is operating strategy of Air Asia. Marketing and operations are significant elements of operating strategy of Air Asia. So, most effort...