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Marketing and Sales of AirAsia Company - Case Study Example

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This paper under the title "Marketing and Sales of AirAsia Company" focuses on the performance of AirAsia since it has started using e-commerce in its business. First, the SWOT analysis of AirAsia will be performed using a well-known Porter’s Value Chain Model. …
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Marketing and Sales of AirAsia Company
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Download file to see previous pages Many airlines have been able to reduce their costs by using E-commerce technologies. Customers are able to find complete information online and do not have to go through the hassle of contacting and visiting travel agents. Hence the intermediary costs are eliminated and the airlines are able to cut cost and provide cheaper tickets to the customers. In low-cost airline carriers, E-commerce is of greater importance because the airline is able to eliminate the admin. Another major factor for the importance of E-commerce in the airline industry is that they are able to closely monitor the activities of the consumers and are able to conduct market research and collect customer data.
AirAsia has been able to develop a competitive advantage in the industry by offering its customers a level of value that is exceeded by the cost of activities. This results in a large profit margin for the AirAsia. The value-generating sequence of activities introduced by Michael Porter is found in every firm and using these activities, AirAsia’s value chain has been analyzed.
This is one of the primary value chain activities of a firm introduced by Michael Porter. In the case of AirAsia, the inbound logistics is related to the aircraft that AirAsia has booked for the anticipated growth in customer demand. AirAsia also has been able to build a strong relationship with Microsoft, the providers of Vista Gadget. AirAsia recognized the branding and commercial worth of innovations such as sidebar gadgets on Windows Vista.
Operations are the primary activities that are required in order to develop the products, in case the activities those are required to provide travelling services to the customers successfully. AirAsia has also been able to master the activities that are required to give travelling services to its customers. AirAsia operates from six hubs in Asia and has increased the capacity by a continuous rollout of Airbus fleet. This has facilitated AirAsia to engage in a strategic expansion program by adding new routes and increasing the number of flights per day.   ...Download file to see next pagesRead More
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