Air Asia analysis summary - Case Study Example

AirAsia Case Analysis Summary AirAsia Case Analysis Summary Issues in the Case The number one low ticket airline in the Asia – AirAsia has been growing swiftly since the new millennium, to become the largest low cost and an award winning carrier in Asia. AirAsia, with a fleet of 72 planes, flies to over 61 international and domestic destinations with over 100 routes. The airline operates over 400 flights every day from hubs located in Thailand, Indonesia and Malaysia (Kami, n.d). Started on December 12th, 2001, the carrier has been such a huge occurrence in the airline industry mainly in Asia.

The airline, with its average icon, but with a strong trademark, “now everyone can fly” these days has been an influential matter in the Airline industry. The firm is one of the airline organizations who are more centered on the strategy of how to decrease inefficiency and incorporate the lowest fare in the world as possible. With low complexity, cost-efficiency and productivity, the company has the cornerstone elements of building a strong business (Porter, 2007). In addition, according to Rhoades & Jr. (2005), the most flourishing carriers came to control their hub markets permitting them to exert greater control over capacity and pricing.

Founded on this statement, the present issues in AirAsia organization are how to accomplish being the least expensive carrier in the world and still make their profits. In relation to these issues, Rhoades & Jr. said that AirAsia the most thriving carrier in the airline industry permitting them to exercise greater control over capacity and pricing (Porter, 2007).SolutionsA critical solution to AirAsia achieving its dreams is through utilizing IT and employing E-commerce in their business. These days, E-commerce is becoming a commerce instrument.

Also, E-commerce has turned into a vital strategic management technique, which allows a company to advertise, sell products, purchase supplies, track inventory, bypass intermediaries, share information and eliminate paperwork. All in all, electronic commerce is reducing the cumbersomeness and expense, higher profitability and improved products. According to this report, E-commerce can transform the manner of doing business these days. E-commerce becomes a key success to a company to make efficiency and effectively in their industry.

AirAsia is one of the organizations, which is employing E-commerce and utilizing their IT usage to make the effectively and efficiency in their company, which will lower the cost of operation of the carrier.How Has Air Asia Achieved Cost LeadershipAirAsia has an extremely strong management staff with strong relations with airline industry leaders and governments (Chan, 2000). This is partially contributed by the various backgrounds of the executive management staff, which consists of top ex-government officials and industry experts.

According to Woo (2009), without the security of national airlines caused by deregulation, erecting alliances as an approach became essential for many airlines to remain competitive and gain entrée to the global market. The well-built links with the airline industry leaders, as well as governments, is one of the ways that AirAsia Company has achieved cost leadership in their operations (Chan, 2000). Also, the management team is extremely good in strategy execution and formulation and the company’s brand name is well recognized in Asia Pacific.

In conclusion, the present issues in AirAsia firm are more centered in the struggle of the cost among the aviation industry. In order to achieve this, they could try doing a SWOT analysis of their organization, which will show them their weaknesses. After that, it is up to the firm to decide on how it manages its weaknesses in order to bring success to the company. ReferencesChan, D 2000, “Air wars in Asia: competitive and collaborative strategies and tactics in action,” Emerald Management and Development Vol.19, No. 2, pp.

473 – 488.Kami, M n.d., Management of technology: It’s all about management & technology! Viewed 23rd January 2013, http://itsaboutmymot.wordpress.com/2009/08/31/the-airasia-company-strategic-management-%E2%80%9C-how-airasia-can-be-a-leader-in-the-lowest-cost-carrier-in-the-airplane-industry%E2%80%9D/Porter, M 2007, Competitive strategy: Creating and sustaining superior performance, The Free Press, New York.Rhoades, D & Jr., W 2005, “Strategic imperatives and the pursuit of quality in the Asia airline industry,” Emerald journal Vol. 6, No. 4, pp. 344.Woo, C 2009, AirAsia: Flying low-cost with high hopes, The University of Hong Kong, Hong Kong.