It is important to note that the Asian markets are substantially more sensitive to fare differentials than the North American market due to the competition from high speed rail.
The effective method however is to combine these two levels for all flights, all routes so that both the seat and the route are effectively priced for all the flights.
Nowadays, E-commerce is becoming a business tool. Asia saw an unprecedented entry of LFAs. How might demand for low-fare service differ in the Asia-Pacific region from NorthAmerica and Europe? Air Asia has a proven ability to successfully operate a budget airline, and shouldcapitalize on that ability by expanding into similar markets such as China and India.
However, Southwest and Ryanair emphasize those strategies in order to differentiate themselves from a large number of low-cost providers in their highly competitive and relatively saturated American and European markets, respectively.
Substantial opportunities have been created for low-fare airlines in Asia by the relatively low income levels in most Asian countries, the availability of alternative modes of transportation, and the low percentage of the population that utilizes more expensive airlines, as well as the increased awareness of the U.
The globalization also forced AirAsia Company to survival for business. According to this statement, E-commerce can change the way of doing business nowadays. However, these toolswill not replace the domination of a price-orientation, but rather supplement it in creatingcompetitive advantage.
The control in this strategy also gives benefits because AirAsia function only to be a controlled a system that is AirAsia used.
In addition, Asian low-fare airlines have a smaller market share,compared to their dominance in Western markets.
This was mainly due to the fact that Asia had established traditional full-service airlines. When the competition in the airplane industry becoming though, complex, and rapidly change, AirAsia company as a company that joined in the airplane industry business need to thinking strategically and also must preparing a good strategic management.
In total, electronic commerce is minimizing the expense and cumbersomeness, improved products, and higher profitability. The reason of the airline industry is a unique and complex industry, not just how to reduce cost and make the operational activities running effectively.
The success of such an approach depends on the similarities between the Asian market and those other markets, as well as the ability of AirAsia to capitalize upon the potential synergies between these strategies.
Everything that can make inefficiencies must be reduced and possibly to eliminate. Some of the most important strategic alignments that AirAsia need to undertake are to do with procurement, resource development as well as sustainability of the important resources necessary for the growth of the airline.
The LCC industry attractiveness and profitability will attract many full services airlines to launch its version adding the degree of rivalry in this industry.
Furthermore, the second reason why AirAsia need to consider a strategic management because in a company nowadays, general management which is the process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling may not sufficient and supportive for the organization succeed in the world of complex environments.
Regarding this issues, the strategic management becomes important due to the following reason such as globalization to survival their business, and than e-commerce become the critical success to the company nowadays.
This has helped AirAsia to open up and capture a sizeable market in Thailand. In addition, to captures and attract a customer to choose AirAsia as an airline option, AirAsia need to develop and create a wonderful strategy and come out with special offering to their customer to successfully in their business.
Therefore, it is imperative for the management to undertaken strategic alignments that focus on the future prospects of the airline.
From the analysis of the business environment, it is clear that there is a general absence of low cost aircrafts in relation to the massive population in the business environment of Asia.The Ascendance of Airasia Essay Words | 5 Pages. Case: The ascendance of AirAsia 1. What is the macro and industry environment for new budget airlines in the Asia- Pacific region?
What opportunities and challenges are associated with that environment? People in the Southeast Asian have low average incomes. t he ascendance of AirAsia: building a successful budget airline in Asia (p.
) Rio Tinto and sustainable mining (p. ) Mattel and the toy recalls (p. )%(3). The Ascendance of AirAsia: Building a Successful Budget Airline in Asia The Ascendance of AirAsia: Building a Successful Budget Airline in Asia case study.
AirAsia had demonstrated that. Mar 29, · Despite the negative aftermath of the attacks, byAirAsia had demonstrated that the low-fare model epitomized by Southwest and JetBlue in the United States, and by Ryanair and easyJet in Europe, had great potential in the Asian marketplace.
Apr 01, · This report is written to investigate the case of “The ascendance of AirAsia: building a successful budget airline in Asia” as written by Thomas Lawton and Jonathan Doh (Shaw, ). The case is on the journey of Airasia Airline Company in the Asian Pacific countries before and after the market liberalization/5(K).
The Ascendance of AirAsia: Building a Successful Budget Airline in Asia AirAsia initially launched in as a full-service regional airline offering slightly cheaper fares .Download