Air Asia Assessment - Case Study Example

Abstract Air Asia is a Malaysia based airline which operates as a low cost provider. The airline has grown over a period of time and has ensured high customer satisfaction. The company has looked to ensure customer satisfaction through proper communication with the stakeholders. The airline uses different forms of communication like face to face communication, internet, travel agents, and employees, phone, SMS and all other form of marketing that helps to pass on the message from the company. The company also accepts information from the stakeholders and incorporates it in the planning process. Air Asia needs to ensure that they improve the communication process by reducing the time for communication and developing new mechanism which helps to pass on the information. Table of Contents Introduction 3 Purpose of the report 3 Communication 4 Communication with Customers 4 Communication with outsiders 7 Communication with society 8 Communication with Stakeholder 9 Most Effective form of communication 10 Recommendations 12 Conclusion 12 References 14 Company Background Air Asia is a Malaysian airline and operates as a low cost provider. The airline started its business in 2001 and with the passage of time has grown its presence to over 100 domestic and international destinations (Claret, 2008). The company has worked on the philosophy of being a low cost provider and is first successful low cost airline which ensures ticketless travelling (Claret, 2008). The airline has sustained the tough competition being witnessed by the airline sectors and having “no frills” has ensured that the cost is low (Claret, 2008) The company has also looked towards fulfilling its responsibilities by ensuring that corrective steps are taken in all directions. The airline has ensured that the communication with the staff, customers, stakeholders, government agencies and other associates is clear so that information is clearly transmitted. The airline has looked forward to integrate the working environment in such a way that it ensures that the process is simple and has revolutionized the airline industry. Purpose of the Report To identify the different forms of communication used by Air Asia to communicate with the stakeholders To identify the best form of communication out of the different form of communication media used by Air Asia To provide recommendations on the way Air Asia can improve the communication process both ways i.e. from the company to the stakeholders and back Communication Communication defines a success for any organization, activity and any measure which involves two or more person. Organizations have to look into ways that ensures that the communication process is clear and the information passed from one stage to another brings best results. This makes it important that when a message is passed to the stakeholders or customers the message gets correctly interpreted by the customer or stakeholder as it can has an effect on the outlook of the company. Communication helps to shape the manner in which a process is carried out and determines the path of success. This helps to define communication as a process where the message is passed on from the speaker to the listener and the listener is able to understand the complete message by using different signs, gestures and body language (Emmert, 1994). The process is complete only when the listener is able to react and respond in the same manner as the speaker wanted to. This makes it important that organizations are able to understand the importance of communication is all directions and devise ways to improve it. Communication with Customers Air Asia looks to communicate with its customers through different mediums which ensure that the correct message is passed on. Air Asia looks towards communicating with the customers through travel agents. Air Asia has travel agents all around the world who look to provide the basic information regarding the flights, bookings, cancellation, timings and all other question associated with the airlines. This ensures that the customer is guided through and provided the information which will help to improve the understanding and ensure that complete message is passed through. The airline also looks towards providing valuable information to the customer through their websites. The airline uses Media Ads to help ensure that a customer while booking tickets or gathering information regarding the flight is ensured satisfaction (Har, 2007). Using Media Ads and communicating with the customer through the website helps to keep the authenticity and reliability of the information that is communicated to the customer. This medium also ensures that the customer can revert back to the company for any information and quick process from the end of the company ensures that the customer is satisfied. The process of communication helps to build “trust, respect, reduces tension and creates conducive environment” (Nicholas, 2003) which ensures that the organization is able to build long term relationship with its associates and develop a good relationship with the stakeholders. Communication gets affected by different factors like the medium which is used to transmit information. An example in this direction is that a face to face communication involves better communication as both the listener and communicator comes in face to face contact which ensures that the doubts and problem gets solved at the same time. This helps to ensure that there is no discrepancy in the information that is passed thereby ensuring better communication. This is demonstrated by a finding which states that using better and developed form of communication media ensures that the information is transmitted in a better way (Anne & Bochner, 1977). To ensure that the communication process is effective and the customer is satisfied with the services the airline has looked towards incorporating a plan which ensures that the complaints are solved quickly. Customers who face a complaint or want to receive some information about the company can communicate with the company through two medium Directly through the website by filling in the online inquiry form which is under the contact us page in the Air Asia website. This message is directly delivered to the help desk team which process the information and communicates back with the customers in the shortest possible time (Air Asia, 2011) Directly by calling the help line number which helps to solve the queries raised by the customer at that point (Air Asia, 2011). This helps that the communication process passes clearly and without any obstacle so that the customer is able to drive out maximum satisfaction and the purpose for which the communication is made is achieved in the shortest span of time Air Asia has also looked towards improving communication with the customers by making use of SMS. The airline has allowed customers to communicate and book their tickets through SMS. The company also provides details to the customers regarding the timing, seat availability and other important points relating to the flights via SMS. The customers can also choose this medium to communicate back with the airline. The development of new tools and mediums to communicate with the customer has helped Air Asia to improve its marketing strategy at he same time ensure that they are able to target the correct customer. The airline has also ensured that the doubts and problems pertaining to any matter is solved quickly. On this front Air Asia has looked to ensure that any one associated with the company can solve their queries through the call centers which have over 180 telephone lines so that people have to wait for a minimum time in queue (Claret, 2008). The airline on this front has ensured that the lookers for information are provided the information at the shortest possible time and they need not wait for long interval of time to ensure that the communication process is clear. Communication with outsiders The company has also looked towards communicating with people associated with the company by using different forms of media which ensures that the message is passed on to the desired people (Phillip & Gary, 2001). The company on this front has looked towards advertising the product and branding it as “now everyone can fly” (Clarte, 2008). This message has been clearly communicated by the airline industry and any steps taken by the airline is directed towards achieving it. The airline has ensured that the airline is able to pass on a simple message to the company and look to mould the wishes of the customers by helping them fly. This has helped the airline company to pass on the message very clearly and has resulted in creating a halo effect around the brand. Using this strategy has helped Air Asia to be simpler and communicate their vision statement clearly. This has been one of the factors which have resulted in the market for the airline player to grow and the company needs to ensure similar ways to ensure higher customer satisfaction. Communication with society Air Asia has looked towards communicating to the society by providing the ways they are looking towards improving the brand image of the company. The company has looked towards donating towards the society which has helped them to ensure that the society is able to receive the correct communication from every direction. The airline on this front has looked towards providing more than 10,000 seats in the various airlines free of cost to different section of the society (Clarte, 2008). The airline has highlighted this while communicating with the society and shows the manner in which it has looked towards showing the society that they care about them and the way they have done it has helped to develop the brand image. The airline also looks towards having a two way communication with the stakeholders by involving them in the decision making process. The airline asks its stakeholders to provide inputs on the new developments that have to be done so that the services are better (Opinion, 2006). Air Asia on this front has ensured that the communication is a two way process which allows the company to pass on information at the same time gather valuable information from the stakeholders so that the changes can be accommodated in the planning process and services improved. Communication with Stakeholder Air Asia looks towards communicating with the stakeholders by providing all valuable information to the stakeholder. Air Asia communicates with the stakeholders by providing information that they belong to “ONE people, ONE culture, ONE Air Asia, ONE family” (Air Asia, 2006) so that every stakeholders feels a part of the common unit and the efforts are directed towards ensuring that the goals of the organization is achieved. Air Asia looks to communicate with the share holders by having an annual general meeting where the past performance of the company is highlighted (Air Asia, 2006). The company also presents the future course of action and the new initiatives the company is working on. During this period the company also invites proposal or suggestions from the stakeholders that will help to improve the performance of the company. Communication also gets influenced by the process which gets involved in the communication. It is important that the communication should adopt a two way communication i.e. where the message is passed from the sender to the listener and from the listener to the sender (Allen, 2001). This process will ensure that the message passed is cleared and the doubts can be resolved on the spot. This is ensured during the meetings as the shareholders are able to solve their queries and ensure that the entire process provides the maximum results. Air Asia looks towards communicating with its shareholders by publishing the annual reports which contains all materials facts. This helps the airline to ensure that the message that has to be communicated is passed on to the stakeholders in a written way so that no discrepancies remain in the passing of information (Lim, Mohamed, Ariffin & Guan, 2009). This medium of communication ensures that the information to be passed on to the stakeholders is verified and after all the mistakes have been removed the correct message is passed on. Air Asia by adopting this way ensure that there is no misleading information that is communicated and the stakeholders based on the report can raise questions and provides suggestions that helps to improve the future performance of the organization. Air Asia also looks towards communicating with the stakeholders by advertising through company employees who are present at the spot. Having this ensures that the employees come in direct contact with the stakeholders and are able to communicate and solve the problems of the stakeholders on the spot. To ensure that the communication process is clear it is important that surrounding environment is looked into. Having proper ventilation, lighting and proper sitting facility ensures that the communication is better as it provides the required comfort which will help the process to bet better (Nelson, 2010). This is achieved at the airport and other centres where the stakeholders are able to get the relevant information and use it to solve their problems. Most Effective form of communication The different medium used by Air Asia to communicate with customers, outsiders, employees, and stakeholders has ensured that the communication process is faster and relevant. The different methods of communication used by the company has made it possible to create a different perception about the company and is able to ensure that using the different forms the company is able to communicate with people even at far of distance. The different methods of communcation has helped the organization but out of all the methods used by th company the following two are the most effective way of communicating. Direct face to face communication with the stakeholders ensures that all the problems can be solved at the same instance. Face to face communication involves better communication as both the listener and communicator comes in face to face contact which ensures that the doubts and problem gets solved at the same time. This method of communication ensures that Air Asia is also able to use non verbal form of communication which increases the relevance of communication. Non verbal communication ensures that the person is able to understand gestures, signs and body language which facilitate the communication process (Maguire, 2002). This ensures that the communication from Air Asia to the stakeholder and back to Air Asia is better. This is a strategy which we see Air Asia using during the general meetings, annual general meetings and the employees who come in direct contact with the stakeholders. This form of communication ensures that the stakeholders have a higher satisfaction level and there is no loss of information while transmitting the same as the stakeholders can revert back with questions. Another form of communication which has helped Air Asia immensely and is used widely by them is the use of internet. The company has developed an interface which is user friendly and simple thereby ensures that the stakeholders are the company is able to communicate effectively. Internet enables the stakeholders to gather information at a click and Air Asia has ensured that the stakeholders are responded back in the shortest possible time so that they communication process reaps maximum rewards. Recommendations Air Asia needs to ensure that they are able to develop their process of communication and ensure that the process becomes simpler and faster. Air Asia needs to ensure that that the stakeholders are answered quickly and the information provided is true and relevant. Air Asia needs to ensure that the move from their present stance where the information is communicated within 3 days and needs to ensure that it is done within 24 hours. This will help the organization to improve the brand image and will act as long term strategy for growth. Air Asia also needs to ensure that they provide regular circulars and notices to the stakeholders which contain all information that the organization wants to communicate and this should be done on a regular basis. This will help Air Asia to receive continuous suggestions and will act as a link between the stakeholders and the company. This will help Air Asia in the long run and will result in effective ways to provide complete information Conclusion Air Asia has ensured that they communicate with all the stakeholders like customers, staff, employees, outsiders, shareholders and everyone associated with the company through different ways. Using a variety of ways like internet, website, annual report, direct contact with travel agents, employees and others have ensures that Air Asia is able to pass on the correct and relevant information to the users. This has helped Air Asia to improve their brand image and needs to develop the communication strategy further so that customer satisfaction gets enhanced and the company is able to have a link with all. This will help the organization in the long run and will result in increased profits and customer loyalty over a period of time. References Anne & Bochner, 1977. Beyond integration: factor effecting the communication of interpersonal evaluations, Communication Quarterly, Volume 25, Issue 2, page 11-17 Air Asia. 2011. Air Asia’s Complaint Process. Retrieved on September 1, 2011 from http://airasiareviews.blogspot.com/2009/03/air-asias-complaints-process.html Allen, M. 2001. Positive influence by effective listening. Innovative Leader, Volume 10, Number 2, page 515 Clarte, A. 2008. Understanding Marketing Mix in Air Asia Airline. Codewit. CSN: 31217-2008-22-15 Emmert, 1994. A definition of listening. The Listening Post, Volume 51, Issue 6 Har, A. 2007. Direct Marketing within Malaysian Airlines & Air Asia. Retrieved on September 1, 2011 from http://www.topix.com/forum/business/direct-marketing/TFUUG86G7QA996LK2 Lim, K., Mohamed, R., Ariffin, A. & Guan, G. 2009. Branding an Airline: A Case Study of Air Asia. Malaysian Journal of Media Studies, Volume 11, Number 1, pp. 35-48 Maguire, T. 2002. Barrier to communication: how things go wrong, Continuing professional development Nicholas, R. 2003. Factors in listening comprehensions. Speech Monograms, Volume 15, Issue 3, page 435-441 Nelson, L. 2010. Factors effecting effective communication. The New York Times Company Phillip, K. & Gary. A. 2001. Principles of Marketing, 9th ed. Upper Saddle River, NJ: Prentice Hall, p.245 Opinion. 2006. Passenger Opinion about Air Asia. Retrieved on September 2, 2011 from http://www.airequality.com/forum/thai-air_asia.html Read More