What Is The Competitive Advantage Of Air Asia

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PART 2 – RESOURCE BASE According to Amit and Schoemaker (1993), resources is defined as assets that are owned by a firm where with the usage of assets and mechanism like labour productivity, technology, management information systems which converts resources into final products or services. Hall (1993) characterized resources into intangible assets and tangible assets where intangible resources compromises of technological means, reputation and intellectual properties while tangible resources are the possession of the firm’s physical assets like machineries, buildings, and materials alongside human and financial resources. A strategic resource compromises of an asset that is valuable, rare, difficult to imitate, and non-substitutable (Barney, …show more content…

The concept of Air Asia being the lowest cost airline carrier has been embedded into most of consumers mind through consistent media advertising and branding. They believe in low fare business model and emphasises that keeping their cost low requires high efficiency in all areas, therefore creating savings which passed on to their passengers in order for reasonable air travel. Air Asia embraces these four qualities is tremendously ideal, hence these resources provides Air Asia a sustainable competitive advantage which will not only withstand over a long period of time but as well aid the company to maintain success in the future. On the other hand, capabilities are the combination of organizational processes together with the firm’s capacity to deploy resources in order to achieve the preferred outcome. Capabilities are based on evolving, carrying and exchanging information based processes that have established over time. Furthermore, capabilities are developed in functional area like brand management and marketing (Amit & Schoemaker, 1993). A way of detecting a firm’s capabilities is to observe the major organizational functions and discover the capabilities contributing to each function (Grant,

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