The Ascendance of Airasia Essay

Company’s Strategy: Southwest’s strategy is to improve efficiency in its operations and pass cost saving to its customers by offering them low and competitive prices. Southwest Airlines is dedicated to providing the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and company Spirit.

In 2010, views on whether low-fare airlines would continue to flourish in Asia varied. Three factors regulation, population demographics, and socioeconomic trends -drove this calculus. Although the target consumer base for AirAsia was enormous -more than 500 million

Southwest has been projected as a low-cost airline and has been a source of inspiration to other low-cost airlines because of its successful pricing strategies. The company has targeted middle-class society as its potential customers and has adopted variable-price as another pricing strategy. The company has also introduced innovative programs and offer incentives along with discounts to attract a larger customer base under its variable cost pricing strategy (Bhasin,

Ms. Moore is an outsider; she is isolated from the rest of her community. The narrator says, “This lady moved on our block with nappy hair and proper speech and no makeup. And quite naturally we laughed at her…” (Bambara 1). Ms. Moore does not incorporate the significant influence of the white community in her everyday life, unlike others in her community. For example, she wears her hair natural and does not try to tame it. Her knowledge and her peculiar look caused people to think strangely about Ms. Moore. The narrator states, “Which is just one of the things the grownups talked about when they talked behind her back like a dog” (Bambara 1). This infers that the adults are most likely intimidated and jealous of Ms. Moore’s refinement; however,

The domestic airline industry transports 711 million souls a year. That translates into a staggering $709 billion a year revenue flow (statista.com). One firm, named Southwest Airlines, accounts for 18.3 percent of that market. That 18.3 percent market share places Southwest at the number two spot, behind American Airlines. How does Southwest Airlines successfully compete and thrive in this environment? How do they differentiate themselves from the hoards of legacy carriers? Southwest Airlines encapsulates its strategy in a simple statement: “Meet customers’ short-haul travel needs at fares competitive with the cost of automobile travel (Grant, p.23). As a pioneer in low cost air travel, Southwest has successfully brought down airfares through its short route point-to-point business model, “no-frills” service, single flight strategy, and highly productive employees (Cederholm, 2014). In the following analysis we will investigate Southwest Airlines standing within the industry as a whole and their differentiation models driving success. We will also identify the firm’s competitive advantages as they relate to similar firms in the industry.

Flight Centre describes itself as a global discount flight specialist. Taking into consideration the relative size of the Australian and international operations as well as the availability of information on global environment and competitive factors, for this analysis, it is more appropriate to consider the Flight Centre’s industry environment as “The Australian international and domestic airline

Low-cost carriers pose a serious threat to traditional "full service" airlines, since the high cost structure of full-service carriers prevents them from competing

The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for

This industry is heavily saturated with intense and rapidly evolving competition due to the relative ease of entry into the market. This accounts for why there are hundreds of airlines ranging from prominent well-known ones to virtually obscure and obsolete airlines. There are six primary airlines which compete fiercely and maintain the majority of the market share and total volume. The remaining fraction of the market share is then sub-divided and allocated amongst the hundreds of smaller, less relevant airlines. The only notable trend within the industry seems to be a total lack of consistency, as market shares and profits fluctuate regularly during any given time period.

The pricing strategy does not really differentiate it from the competitors as value-based service is not provided by the airlines. The low-cost structure and revenue strategy of Spirit Airlines give it a sustainable competitive

The old saying, “it’s not personal, it’s business” comes to mind when thinking about how to effectively run your business in this, and any, economy. What we should be thinking, and how we should be approaching our customers is, “it’s personal, it’s business”. People want to feel that extra touch of personalized service, and indeed, expect to be “wooed” in order to remain a customer. Regular customers want to be remembered when they walk into your store, they want to feel they belong. Consequently, calling them by name and making them feel welcome will set their shopping experience apart from all other stores they frequent. Essentially what we are trying to achieve is to get back to the way things were done before the obsession with big box

Leadership is the ability to influence people to want to achieve a goal or task. You have a plan and you inspire a vision for accomplishing the plan. As challenges occur, you use expertise and/or experience to set the example and lead the way, which enables others to act. Overcoming challenges and working hard together encourages the hearts of all, and as you see the fruits of your efforts and the completion of the goal, you have successfully applied leadership. I have to attribute my first leadership influences to my parents. My father taught me the value of working hard to accomplish your goals. He worked a full time job with the State Highway Department for 28 years along with owning and operating a dairy farm. My mother had

The Airline industry is a large and constantly growing industry. It facilitates economic growth, international investment and world trade and is therefore central to other industries as well for globalisation. There are various forces which lead to globalisation in airline industry. Key drivers of change are forces likely to affect the structure of an industry; sector or market. (1).

Job catalogue and income aspects are the key focuses of Airasia for targeting the segmentation(Kotler et al, 2010). Most the customers of Airasia are students and low or middle class income people. Students and low incomes people are likely to concern more about fare price, while middle income people want a balance between price and quality. Eventually, Asia is becoming the potential market of the world and this creates more opportunities for traveling and carrier services especially in Asia Pacific region.

In the case study all of the business models that Air Asia uses is matched with a Low cost carrier business model such as if the passenger need the food on board they need to pay an extra payment because no frill to serve, every passenger will sit in the same class. All of the business models will concern about the lowest cost as much as they can create: For instance: Reducing the personal cost by providing the multiple role to employees, not only work as a flight attendance but also work as gate agents. In addition Air Asia keeps operating costs low by uses one type of aircraft which is Airbus A320. The business model that Air Asia uses can be result in the benefits of an organization and thus called “Competitive Strategy of Air Asia”. Some of the business model that made is better than other airline, such the promotions that always attract customers, For instance; The price of the ticket start as 0.99 RM. This strategy is causing over the million of passengers. From all of above It can be referred that the type of competitive strategy which Air Asia use is ‘Cost leadership’ which is a process to serve customers at the lowest cost in order to fulfil the customer needs under the cost control in an organization. In this large of competitive market, Air Asia beginning in the right ways. The market positioning strategies and management of Low-Cost Airlines was clear from the beginning. According to the business model of Air Asia that shown in the case study indicated that the firm structure can result in Competitive advantage, Air Asia cut costs in every operation such as aircraft cost, but the performance still provide in a great ways, So Air Asia gain more profit than rival firms because their operation cost lower than other airlines and because cost reduction is another way to bring in revenue. Air Asia also find out how to maximize profit, such as sale Packages (a case study on Air Asia