2.0 Planning and Strategic Management
2.1 SWOT Analysis
Low cost operations
AirAsia Berhad is the first airline company that offered a low cost flight in Asian market. By operating the low cost principle, AirAsia Berhad aim to maximize their sales and minimize their operating cost. Based on their slogan “Now Everyone Can Fly” have fulfilled the wants for those passengers who choose to fly with low cost airlines especially students, those family with lower income and low income earners. Therefore, it can increase the demand of travelling. Extensive of E-Commerce
AirAsia Berhad has the benefit for selling off their seats through internet network and telephone booking. AirAsia uses Navitair’s Open Skies computer reservation system (CRS) which is a web-based sales and inventory system linked to AirAsia’s call centre and allow the customers to print out the boarding pass. This shows that they are efficient and effective towards their company. Since AirAsia has limiting the agents’ commission, so about 85 per cent of AirAsia flight ticket is sold through online booking .Therefore, they can reduced the cost by promoting their organization hence it can be reduced the intermediary cost. Flexible Air Schedules
AirAsia Berhad increases the frequency of their flight every year to fulfill the needs of passengers. The organization will give an incentive to those pilots who take for short flight which they can reduce the duration of flights. Therefore, it is suitable for business passengers who travel often. Strong Management
Every staffs in AirAsia Berhad are the contributors. Everyone is focused on their work and concern about their organization. To have a strong management, they must have an extensive set of skills by planning, making decisions, solving problems, selecting and developing the right people, communicating and motivating their employees.
4 Economy of scale
The advantage of...
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