Many companies over the worldhi have created blue oceans but these blue oceans only remain in a short periods and quickly become red oceans. However, the fact shows that innovations are expensive so it is difficult to maintain both creates and low cost, especially in the first period.
Commencing inwithin fifteen years, AirAsia managed to expand its operations into another ten countries. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom. The paper also throw some insights into the Blue Ocean Strategy concept which is used by AirAsia as one of its strategic moves.
The airlines are using several strategies to compete with one another in the industry. Airline companies need to identify their strategic management to achieve their vision and mission and AirAsia is no exception.
The company commenced its operations on 18 November AirAsia later started a Thai subsidiary, added Singapore itself to the destination list, and commenced flights to Indonesia.
Air Asia has further enhanced its presence in Asia by strengthening and enhancing its route network by connecting all the existing cities in the region and expanding further into Indochina, Indonesia, China and India.
With the increased frequency and addition of new routes, AirAsia expects passenger volume to grow further. At the same time, it wants to promote Malaysian hospitality and the local food.
In addition to charging lowest fares and focusing on customers, it also would like to develop various products and services. AirAsias mission is to be the best employer, create a globally recognized ASEAN brand, to be the lowest cost budget airline and to maintain the highest quality service by embracing technology.
The core values of Air Asia are adopting safe practices, valuing its employees, focusing on customer, maintaining highest standard of corporate integrity and commitment for performance excellence.
The goals and objectives of Air Asia are guided by its corporate vision and mission which include emphasis on safety, customer focus, operational excellence and human capital development. In maximizing shareholders value, AirAsia also intends to create more profit by expanding its business to other Asian countries.
Besides, it also has started to add routes and network in a prudent calculated way. Whilst going through a calculated expansion routes and networksthe company also ensures to reduce the risk of business loss.
The companies goals now is to carry 70 million passengers a year, within six years starting fromdevelop the low-cost carrier terminal at the KL International Airport into the regional hub for budget travelintroduce more routes, add frequencies and develop the existing routes.
Aligned with its mission statement, AirAsias business strategy is centred on cost leadership. However, its business strategy targets specific markets; price sensitive customers including first-time fliers needing short-haul flights.
ThereforePorters generic strategies table 1 ,AirAsias business strategy can be categorized into focused cost leadership. Table 1- Michael Porters Generic strategies4AirAsia builds and sustains its competitive advantage by providing services at a price that is simply lower than competitors price.
Operation effectiveness and outstanding efficiency are two main characteristics of low cost businesses including AirAsia.
AirAsia boss wants lower passenger service charges at KLIA2. Bernama (Updated) A A. Malaysia Airports should think Blue Ocean, think differently," he told reporters after a luncheon talk at the International Conference On Blue Ocean Strategy in Putrajaya today. Again Apple launched the iPod as a blue ocean strategy, of sorts. There were very few MP3 player competitors in what could be described as a small revenue "red pond" until Apple revolutionized this market with the iPod and iTunes. Recovery teams early Wednesday pulled bodies of people aboard Indonesia AirAsia Flight — including a woman in a flight attendant's uniform — from the rough, shallow waters of the Java Sea.
The sources of cost advantages contributable to the low cost business model for each activity in AirAsias value chain.Definition: 'Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.
Description: Blue Ocean Strategy can be. Blue Ocean Strategy in Air Asia. over long periods of time. AirAsia approaches to prevent this occurring and to generate continued growth is to frequently re-assess its strategy so that they build strong businesses in the attractive industries of the future Company overview.
Terrifying footage shows an AirAsia aircraft with people on board shaking violently after it was forced to turn back to Perth less than two hours into its journey to Malaysia on Sunday morning.
In addition to an outdoor pool, Blue Ocean Resort provides a fitness centre and a kid's pool. The resort offers a restaurant and a coffee shop/café. Guests can unwind with a drink at one of the resort's bars, which include A poolside bar and A bar/lounge.4/5(). In short, Blue Ocean strategy stimulates an on-going-process including creating, protecting, and reaching other Blue Ocean.
This confirms the author’s assumption that it is a dynamic strategy. According to research by IBM executive, Blue Oceans helps companies gain significant profit in the future. An Indonesian helicopter searching for a missing AirAsia plane spotted two oil patches in the water Monday, while an Australian search plane found objects in another location of the Java Sea, but.