The Development of AirAsia Airlines: How They Apply Blue Ocean Strategy

1559 Words7 Pages
AirAsia airlines: How they apply Blue Ocean Strategy From the article that I have read recently by Rizal Ahmad in Asian Journal of Management Cases, he described the development of Air Asia Malaysia from 2005 to 2008. Within only four years, AirAsia managed to expand its operations into another ten countries. This article also documents Air Asia's marketing strategy and its approach towards 'market development' and 'product development'. The Blue Ocean Strategy concept is used as a tool to examine Air Asia's strategic moves. First of all, we will be going through AirAsia's management practices. They provide the low-cost carrier (LCC) business model, which AirAsia adopted, was grounded on the principles of creating and delivering…show more content…
AirAsia airlines: How they apply Blue Ocean Strategy From the article that I have read recently by Rizal Ahmad in Asian Journal of Management Cases, he described the development of Air Asia Malaysia from 2005 to 2008. Within only four years, AirAsia managed to expand its operations into another ten countries. This article also documents Air Asia's marketing strategy and its approach towards 'market development' and 'product development'. The Blue Ocean Strategy concept is used as a tool to examine Air Asia's strategic moves. First of all, we will be going through AirAsia's management practices. They provide the low-cost carrier (LCC) business model, which AirAsia adopted, was grounded on the principles of creating and delivering passenger air travel solutions to customers at the lowest possible cost without compromising their safety. This was achieved; 1. By offering its basic or core product (available passenger seats) as single-class, no-frills air travel. Passengers had to pay for additional services or frills. 2. Secondly, AirAsia maximized the utilization rate of its aircrafts. The airline's aircrafts, on average, flew six and a half sectors or twelve hours every day. AirAsia continued to strive towards achieving a high level of efficiency. 3. Thirdly, AirAsia kept its fixed costs down by continuing to adopt management practices. A key strategy that AirAsia continued to use was to treat some of its fixed costs as variable cost. When serving a minor route (a small

More about The Development of AirAsia Airlines: How They Apply Blue Ocean Strategy

Open Document