Study Case II: Air Asia- Now Everyone Can Fly

QUESTION 1

Identify five (5) of competitive advantages used by Air Asia.

· Asia’s largest low fare 

· Air Asia pioneered low cost travelling in Asia.

· Crew productivity level that is triple that of Malaysia Airline

· Unassigned seats

· No frills airline

QUESTION 2

Which of the Porter's generic strategies were applied by Air Asia in the case
 study and explain with examples.

-Cost leadership are strategies that applied by Air Asia because it requires lower 
cost,broad market and satisfy customer's requirement.

-Air Asia promoting their slogan ''everyone can fly'' with lower cost to fly 
everywhere we want. So, everyone with different level now can go travel to 
anywhere they want with lower price of ticket they offer.

-They focus this strategies to broad market for example Air Asia will strengthen 
and enhance its route network by connecting all the existing cities in the region 
and expanding further into Indochina, Indonesia, Southern China and India. 
The airline will focus on developing its hubs in Bangkok and Jakarta through its 
sister companies, Thai Air Asia and Indonesia Air Asia.

-Furthermore, they satisfy customer's requirement with offer that they provided. 
For example they give good services to customer in term of price ticket, online 
booking ticket, treat customer with fair and equitable. So, they satisfy what 
customer want and need.

QUESTION 3 

Based on Porter's Five Force Model, analyze Air Asia's buyer power and 
supplier power.

Air Asia's buyer power- buyer power high when there many choices of whom to buy from and low when their choices are few. For example the buyer power is high when customer get many choice from other airline to travel and lower the buyer power when customer not have choice from other airline to travel. To reduce buyer power, Air Asia need do the loyalty program. For example, appreciate their regular customer by giving reasonable discount or prize holiday.

Air Asia's supplier power-high when buyers have few choices of whom to buy from and lower when their choices are many. For example Air Asia have high supplier power when they are the only airline that offer ticket at lower cost and lower supplier power when they have competition from other airline. Through market B2B marketplaces, the supplier power can be reduced. Air Asia use private exchange because they are currently the main customer of the Airbus A320. The company has place an order of 175 units of the same plane to service its route.  AirAsia assessed by the suppliers' ability to directly impact the price they are charging for suppliers. AirAsia also enhance its route network by connecting all the existing cities in the region and expending futher. Usually airline industry has high supplier power has as there are limited plane and engine manufacturers;