Srm a Strategic Service Vision for Air Asia Bhd

Flight Centre offers a very competitive price. The prices are usually are lower than its competitors when it comes to domestic and international flights. It provides the option of different prices ranges. These price ranges depend on the services that a customer requests. It provides economy class, business class, premium class, and first class price ranges. Due to its affordable prices and good services, it has grown to become a 13.5$ billion business comprising of more than 30 brands. It works had to keep up with the competition by providing best possible prices while ensuring customer loyalty (Flight Centre the Airfare Expert).

The Mission, Vision and Values of a company play a Fundamental role in Strategy Formulation and Strategic planning. We will discuss throughout this assignment, how developing effective mission, vision and values can help shape, develop and guide a firms Strategic choices. They reflect the firm's fundamental core ideology. At the most basic level a mission statement can describe the firms overall purpose for being. It provides an inside to the present business scope and purpose of the firm that is "who we are, what we do, and why we are here". Thus it explains the firm's very reason for existing. It will generally define the scope of the firm, the ends to which it wants to achieve and the means of doing so (its competitive advantage), which

A strategic vision thus points an organization in a particular direction, charts a strategic path for it to follow in preparing for the future, and molds organizational identity. A clearly articulated strategic vision communicates management’s aspirations to stakeholders and helps steer the energies of company personnel in a common direction. For instance, Henry Ford’s vision of a car in every garage had power because it captured the imagination of others, aided internal efforts to mobilize the Ford Motor Company’s resources, and served as a reference point for gauging the merits of the company’s strategic actions.

As I reside in Dallas, Texas, I chose to examine the major initiative planned by Southwest airlines over the next five years and their legal impact. Southwest is a low cost carrier or budget airline that adopts the low cost strategies in all of business, such as the opening airlines, choice of secondary airport, ways of selling tickets and on-board service. Any type of airplane, any simple fare different scheme, direct sales of tickets, no reserved seating, without many national or international passengers services, use of any airport and short-out flights very quickly time ,simple routes with time -to-time transportation, low employment cost with multiple roles and etc. Such a strategy will reduce the price to a lower-level and then the cost they have saved will benefit the passenger, and it will help them. Lowest carrier had change the customary idea of air travelling, is a high level of expenditure into a speed and economic air travelling. The concept original in the United States, follow by Europe and consequently to Asia.

Air Asia leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies, Air Asia X, Thai Air Asia, Indonesia Air Asia, Philippines Air Asia and Japan Air Asia.

Air asia provides air travel at substantially lower prices is also known as no-frills or discount carrier. The company offers low fares according to cut out the "non-essential" service. The low cost of airline ticket is extremely basic because it attains high passenger loads and cut out all the extra. It means that the company does not provide meals, drinks, or snacks served free on board. The low cost airlines offer the economy flight which is narrow seat compare with wider business class seats. It also does not allocate seats for passengers as like "free seating" to make passengers board the flight early to get their seat. The additional of schemes or sale promotion activities do not offer by the company as the pricing structures are low. Low cost airline is related to the operating cost are kept to the bare minimum with low wages, low airport fees, low long term maintenance contracts rates, and low fares. So that, Air Asia is able to reduce the overhead and investment in equipments substantially absence of fringe services. Therefore, Air Asia has the operating cost compared to other competitor

This step of the planning process is critical in that is serves as the foundation upon which the remainder of the plan is built. A vision is a statement that identifies where an organization wants to be at some point in the future. It functions to provide a company with directionality, stress management, justification and quantification of resources, enhancement of professional growth, motivation, standards, and succession planning. Porrus and Collins (1996) point out that a well-conceived vision consists of two major components: a core ideology and the envisioned future.

The strategic service vision entails four pillars, which consist of target market segment, service concept, operating strategy, and service delivery system. In essence, the pillars are utilized to improve or modify current services.

A company's vision is a "general statement of its intended direction that evokes emotional feelings in organization members." (Dessler, 2003). The mission statement determines the type of business it will be by setting the purpose for the company, and

The Project aims to study the Cathay Pacific Airways Limited (CX) in tourism and hospitality industry, and the report will critically analysis their strategy and development through the Cathay Pacific’s background information, the company culture, resources, capabilities and competitive advantage, and different strategies. Final, to sum up the company's strategy will give its competitive advantage over the next five years.

Lot of complaint from customer on their service – Recently, Air Asia has received a lot of their consumer complaint about the service. Example , customer might not get the refund or changing to the next flight , if the flight are delay. Furthermore, these problem also due to the Air Asia do not have much routes as compared to other Airline. Which mean AirAsia can’t provide much flight schedule compared to the Malaysia airline (

AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.

There a few weaknesses of Air Asia Airline Company that writer can describe according to our reading and experience. First of all, Air Asia has a weakness on them on the way they serve their own costumer. Air Asia services were commented by the consumer as a non-punctual flight because according to consumer, Air Asia does not follow the schedule of flight strictly. This situation had caused unsatisfied feeling toward the consumer that choice to use the Air Asia service. Because of that, Air Asia had lose lot number of they own costumer that really care about time punctual. But to reduce they own weakness, Air Asia had took a step to settle the consumer problem toward the flight delay issue (Brown, 2014). Beside, Air Asia also had always being critic by they own consumer about the hidden tax that they took from the costumer. For example the aviation will charge consumer every time they purchase to use their services on the seat that consumer want. Air Asia will took charge different price according which position they want to seat, more better seat consumer take more higher price will they paid. This situation

To be able to adjust with stiff competition that keep increasing in the airlines market, airlines industries tend to come up with different approaches and strategies to be more competitive. Air Asia, like any other airlines adopt strategic approach to marketing and expand their market reach and give better and satisfying service delivery to their target market. Being an industry that considers differentiation strategy, Air Asia continue to focus on their low cost approach, frequently flights approach, guest convenience, ticketless services, easy payment channels, internet booking, reservations and sales offices, and authorized travel

It should sum up and reflect what your business is all about and is used to provide a defined path and guide decision making. A vision is different to a mission statement in that it is future-focused and meant to inspire and give direction to the employees of the organisation. Elaine J. Hom (2013) clarifies that a mission statement explains “Why does my business exist?” while a vision explains “Where do I see my business going?”