air asia

Topics: AirAsia, Strategic management, Management Pages: 3 (805 words) Published: December 2, 2013
Air Asia’s local presence in few countries such as Indonesia (Indonesia AirAsia) and Thailand (Thai AirAsia) has successfully “elevated” the brand to become a regional brand beyond just Malaysia. The links with Manchester United (one of the world’s most famous football teams) and AT&T Williams Formula One team have further boosted their image to a greater extend beyond just the this region

1. Operation effectiveness and outstanding efficiency
One of the Air Asia strategies to solve the current issues/problem in the lowest carries competition among the LCC airline industry is to make operation effectiveness and outstanding efficiency. How Air Asia implemented this strategy to make operation effectiveness and outstanding efficiency? To make this strategy successfully implemented:

•Air Asia move from the traditional business into modern business by implementing E-commerce and maximize the information technology (IT) in their business. The implementation of E-commerce can reduce the cost of travel agents, and less of ticketing paper cost.

•Air Asia also chooses the route by adjusting prices for routes/destinations that have a higher demand when compared to others. •And than Air Asia also trying to reduce by using better maintenance management. According to Gloker (2002), by using the better maintenance management, AirAsia can save large proportion of its maintenance cost contributes approximately 9% to the overall cost of an airline[21].

In conclusion, those are the Air Asia strategy to make Operation effectiveness and outstanding efficiency in their business. With this strategy, AirAsia can achieve their goals and objective into the lowest carrier airplane in the world.

1.Implemented outsourcing in their business
To make the lowest carrier in airplane industry, AirAsia also face with challenged to make a decision in terms of efficiency in their business how it will acquire the system. AirAsia have two options in this strategy: in house building or...
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