Question 1 Discuss the growing demand for logistics. (10m) The reason for the rapid growth of the logistics industry can be attributed to the fact that a majority of the companies dealing in logistics operations target clients of medium size instead of targeting the stalwarts of the logistics industry. Nowadays‚ the advance IT technologies had make the internet retail or online shopping is growing rapidly and this will be an increasing source of demand for both large and smaller logistics units
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efficiency. The major threat and challenges which AirAsia is facing right now are competitive environment due to industry rivalry and the need to create differentiation to gain competitive advantage among other low cost carriers. Based on SWOT analysis‚ we can see that the company has been using an extensive of IT systems in their value chains. It has gain strengths in operations by implementing YMS‚ CRS and ERP systems. Analysing with Porter 5 Force on external environment‚ we could see that the
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{text:bookmark-start} {text:bookmark-start} Background {text:bookmark-end} {text:bookmark-end} A successful example of a Malaysian no frills airline is Air Asia. Revolutionized and Reinvented by Tony Fernandez in 2001. It is based on the low-cost‚ no-frills model of the US carrier Southwest. The concept of Air Asia is based on the belief that demands for short-haul air transport is price flexible. That means‚ if prices for flights are being reduced‚ more people will fly. Traditionally‚ airline concepts are based
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SWOT : AIR ASIA Strengths 1. low cost operation 2. target mass customers 3. efficiency workforce 4. Staffs have multi skill to do their job. 5. single type fleet to service the customer‚ it easies to maintenance. 6. lowest fare more than others. 7. Sell the ticket direct to the customer. Weakness 1. Limited service to the customer. 2. charge every things except the ticket 3. A lot of competitor. 4. Brand positioning lower than other brand. 5
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INTRODUCTION Air Asia is a Malaysia Low Cost Carrier Airline Company which was founded in 2001 by Tony Fernandes. The company provides a totally different type of service in line with the nation’s goal which is to benefit all people and worldwide travellers. The main service takes the form of no frills. Before 2011‚ it is a money losing airlines operated by the government which after that became a successful airline company after being taken over by Tony Fernandes. It can be said it is a remarkable
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Contents Table of Content Background Information........................................................................................................... 2 Company Analysis.................................................................................................................. 2 I. Segmentation………………………………………………………………………………2 II. TOWS…………………………………………………………………………………….3 Marketing Challenge…………………………………………………………………………7 Recommendation……………………………………………………………………………..7 I. Tap into
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several years‚ AirAsia failed to attract enough passengers to establish its own niche market due to the demise of Tan Sri Yahaya Ahmad and financial crisis. Hence‚ AirAsia was heavily indebted. In 2001‚ Tony Fernandes’s company‚Tune Air Sdn Bhd bought this airline from DRB-Hicom with estimation of RM 40 million debts. There are many continuous transformations that Air Asia makes in order to become outstanding‚ to accomplish its strategic mission and vision and maintain sustainability in the industry. Using
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cultural‚ political and economic factors. However‚ these factors may vary depending with the company. In this study case of Air Asia‚ low price was the smartest marketing strategy Air Asia used. The company has done its research and found that there were a huge mass middle-class people that love to travel by plain. They targeted these people and offered them convenient and affordable air travel experience. By this approach‚ the company has satisfied its slogan “Now everyone can fly”. Second factors
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Malaysia Airline (MAS) and Air Asia is the main air transport in Malaysia. The passengers of this two flight company are increasing every year. Their have also creates a lot of destinations to let the customers choose. I have chosen three articles for my reference. The first article is about interview of new Malaysia Airlines chief executive Azmil Zahruddin. “We are constantly monitoring our network and focusing on the religion that we feel will have high demand‚ and allow us to increase
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be achieved by maximizing passenger number per flight • MAS‚ under Idris Jala cut several unpopular flight routes due to irregular number of passengers and increased number of flights in high demand routes to cut unnecessary expenses and costs • Air Asia benefits from the lowest flight cost‚ USD$0.02 ASK* (Southwest Airline [US LCC] – USD$0.04‚ MAS - $0.41‚ Cathay Pacific $0.59) b. Technological Change i. Technology is a key determinant however change is not very rapid ii. Releases of new aircraft
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