Friday, January 10, 2014

AirAsia - Now Everyone Can Fly Case Study.



1) Identify five (5) of competitive advantages used by AirAsia.
  • Pioneered low cost traveling in Asia. 
  • The first airline in the region to implement fully ticketless travel and unassigned seats.
  • Operates with the world's lowest unit cost.
  • Has a crew productivity level that is triple that of Malaysia Airlines and achieves an average
    aircraft utilization rate of 13 hours a day.
  • AirAsia has a crew productivity level that is triple that of Malaysia Airlines and achieves an average aircraft utilisation rate of 13 hours a day.


2) Which of the Porter's generic strategies were applied by AirAsia in the case study and explain with examples.


  • AirAsia applied the focused strategy which concentrate on differentiation. This is said because it is also the first airline in the region to implement fully ticket-less travel and unassigned seats. Futhermore, AirAsia pioneered low cost travelling in Asia and operates scheduled domestic and international flights and is Asia's largest low fare.


3) Based on Porter's Five Force Model, analyze AirAsia's buyer power and supplier power.

  • Buyer Power
In this situation, the buyer power is high due to buyers having many choices whom to buy from. The buyers can purchase low fare tickets from various airline that offer low cost fare such as Lion Air, Jet Star and many more.

  • Supply Power
The supply power is low due to buyers having many choices to choose from. Since AirAsia is not the only airline that offer low cost fare, its supply power is low as customer can choose which airline they would like to fly with that offer the same or cheaper price than AirAsia.

No comments:

Post a Comment