Air Asia Strategic Management Recommendations

5772 words 24 pages

MGMT 3347

Table of Contents:

1.1 Industry Identification
1.2 General Environmental Analysis
1.3 The Industry Environment
1.4 The Competitive Environment
1.5 Opportunities and Threats

2.1 The Firm’s Resources: Tangible and Intangible
2.2 Capabilities Identification
2.3 Core Competency Analysis
2.4 Value Chain Analysis
2.5 The Firm’s Weaknesses
2.6 SWOT Analysis

3.1 Current Strategies
3.2 Future Strategies


An analysis of the External Environment would be done so as to facilitate a direct comparison between the generic elements
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People are now keener on exploring places far away from home and are willing to fork out money for such experiences. In doing so, the idea of low cost airfares that would allow them to save more to spend at holiday destinations is appealing to them (Ernst & Young 2012). The attractiveness of budget airlines lie primarily with their low-ticket prices and hence would present itself as a major opportunity to budget airlines. For an airline to differentiate itself from its competitors, it has to be able to have value-added services apart from low fares to distinguish itself and outstand the rest. This works out to be a competitive advantage, which may present itself as an important factor for airline companies to have so as to succeed as a low cost carrier (DestinAsia 2012).

By utilizing information technology to aid companies in e-transactions and e-commerce activities, the traditional ticketing and travel agent systems were soon replaced by e-ticketing and internet booking systems (Mouawad 2010). This meant that alongside with globalization, even the process of booking tickets have gone through a massive restructuring. Airlines are now able to save the cost of issuing physical tickets and can now do away with large and expensive booking systems as well as tour agency commissions (PRLOG 2010). However, an airline must ensure that it is not over-reliant on the Internet systems as if it is not handled properly, the risk of system destruction and


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