TABLES OF CONTENTS 1.0 2.0 3.0 4.0 5.0 Introduction Importance of e-Commerce and m-Commerce Corporate Appraisal Competitive Advantages m–Commerce 5.

1 Differences of m-Commerce & e-Commerce 6.0 Recommendations 6.1 Benefit of Microsoft Vista and m-Commerce to AirAsia 6.2 Benefit of Microsoft Vista and m-Commerce to Customers 7.0 Conclusions

APPENDIX

REFERENCES

Individual Coursework

1.0 Introduction Purcel and Toland (2004, 241) said “Internet and Communication Technology offer the opportunity to reduce the barriers of distance, and give…. countries better access to global economy”. This is where e-Commerce comes into picture which covers electronics trading of goods and services, electronic fund transfer, online procurement, direct marketing, electronic billing, etc, through internet. It is very important for businesses to embrace the latest technology to conduct their business, whereby switching the traditional business models into a better model in terms of efficiency, productivity, profitability and competitiveness.

This report intends to analysis how the technology of e-Commerce and revolution of m-Commerce impacts airlines industry in worldwide, especially low cost carrier. The report begins by examining the strength, weakness, opportunities and threats (SWOT) for AirAsia by using Porter’s Value Chain; and analyses AirAsia’s competitive advantages by using Porter’s Generic Strategies model. The discussion then moves to review the characteristics of Mobile Commerce (m-Commerce), compare the differences between m-Commerce and e-Commerce. The discussion continues to review how Microsoft Vista can be applied to m-Commerce and the benefit to AirAsia and its customer. Lastly, summary and recommendations will be made to identify the strategies that AirAsia can stay competitive and maintain its market share.

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update in real time and accessed on demand. this will help to minimize the empty seat and maximizes the sales of seat. productivity and high utilization of assets to offer low fares. this business strategy is to create customer loyalty. Page 3 of 25 05Sep2009 . efficiency. The data provide in online booking combine with the right software will ease the business administration task to stored and categorized automatically. customer database to plan ahead their business strategy. the numbers of population in Malaysia owning a personal computer has been increase to 18%. LCC also can fully utilize the resources of information such as booking seat. traditionally in airline industry. It is also the first airline in the region to implement online reservation and fully ticketless travel.Individual Coursework 2. The first successful and pioneered LCC was AirAsia in asia. this technology enable the development of low cost carriers (LCC). This is whereby LCC save cost on manpower to data entry this information. LCC pursued simplicity. In terms of efficiency. E-commerce helps LCC to simplify the process of purchase by online reservation and issuing of e-ticket. majority of air tickets were purchase through travel agent or call centers. as such no middleman is required in this process. By 2003. E-commerce and m-Commerce also provide convenient to customers. Customers will purchase upon their satisfactory after comparison. they can easily compare the airline company to choose before purchase in terms of quality. price and availability.0 Importance of e-Commerce and m-Commerce in Airlines Industry According the finding of Gillan and Lall (2002). LCC are able to perform real time transaction to a global customer for 24 hours a day and 7 days a week.

and keep buying from you. Porter’s Value Chain will be used as internal scanning to analyze the strength and weakness for AirAsia systematically by analyzing all 9 activities.Individual Coursework 3. Michael Porter introduces “Value Chain Analysis”. Marketing and sales. and Services.0 Corporate Appraisal Porter’s (1985) Value Chain & SWOT analysis In business. Ultimately Boeing 737-300 to be retired and replace with Airbus A320 to overcome the increase of oil price by structurally reduce cost and enhance customer services with better quality aircraft. Human resources management. In year 1985. Operation. Page 4 of 25 05Sep2009 .Inbound logistic. Airbus A320 is less fuel consumption compared to Boeing 737-300 aircraft. Technology development. Outbound logistic. more customers are ready to pay a good price for you product or service. Porter argued that the organization can be divided into a series of primary value adding activities and supporting activities. and Firm infrastructure. The primary activities include:. resin) and “add value” to convert it into something that customer are willing to pay money for (for example. we can say that people take raw input (for example. a concept from business management to identify the ways of an organization create value to their customer and how to optimum these activities to gain competitive advantage. a) Inbound Logistics AirAsia has placed an order of 175 units Airbus A320 to service its routes (AirAsia Berhad 2007 Annual Report). The support activities include:Procurement. plastic container). The more value you added.

poor quality and delayed services amongst others. compared to maintaining different aircraft. On the other hand. They have optimize their operation by maximize the aircraft utilization at 12. lack communication. misunderstanding of the contact. AirAsia’s utilization is still Page 5 of 25 05Sep2009 . AirAsia implement high frequency flights with a quick turnaround of 25 minutes which is the faster in the region. Partnership may caused some problem such as renewing contract. This will help to reduce the stock of part maintenance. less training for employee and servicing cost. Anyway. spare part and required more manpower for different aircraft. Base on Table 1 below (AirAsia 2007 annual report). spare parts and same skilled manpower for maintenance and repair purpose.0 block hours per day and load factor at 80%. GE began servicing jet engines more than 50 years ago. it may need many different special tool. they have world class capabilities. it also weakness of AirAsia do not have own maintenance teams. b) Operation AirAsia partners with the world famous maintenance providers – GE Aviation to ensure that its fleet is always perform in safe and best condition. All the aircraft can share to use the same tool. The strength of AirAsia is to maintain low cost. whereby they don’t have to provide benefits to their workers. but still can maintain the best quality of their fleet.Individual Coursework AirAsia pursue simplicity in operation by operating a single aircraft fleet. They also may not drive the same standards and mission that drives by AirAsia and there is a risk that the confidentiality may be compromised. technology and manpower to provide best aviation services to AirAsia.

airlines. In 2006. OTP has gradually improved by 9% on 2008.10 per block minutes (Table 2 http://www. With the improvement on operation by using new aircraft -Airbus A320. AirAsia not only loss in terms of money but also customer’s confident and brand equity. But on customer point of view. which is also without airport lounges’ charges. emphasizing point to point network rather that transfer at hubs as full services airline. it’s very inconvenience for them because the luggage cannot automatically transfer from one flight to another. AirAsia take advantages of lower landing fees to landing at low cost terminal. whereby 21% of the flights are delay. c) Outbound logistic The LCC adopts simple routes. on 16 June 2008. AirAsia launched an On Time Guarantee (OTG) champion where compensation will be given to customer for the delay due to their fault. cost of delay for AirAsia on year 2006 is in huge amount. They also provide E-ticket rather than printed ticket to customer which is cheaper. And to win back the customer’s confident.4 block hours per day due to they do not operate late night flights. d) Marketing and sales Page 6 of 25 05Sep2009 . If based on the estimation for cost of delay USD74.Individual Coursework lower than other LCC by 0. AirAsia has a poor On Time Performance (OTP) at 79%.org/economics/cost+of+delays/). Again this will enhance aircraft utilization and eliminate disruption due to passengers or luggage missing connecting flights.

4 August 2007 http://www.com. The credit card Exclusive promotion -fixed rebate of RM36 on airport tax provided for those who sign up AirAsia Citibank card.airasia. Prior this AirAsia has limited service to customers’ required special care. hostel and holiday packages at discounted rates. fuel charges. car rental.airasia.jsp?id=4322bb92-ac1e00ae1ad0d890-a7d011e3) But the limitation is they can carry only a maximum 4 guests per flight and failure of notification will results the service being unavailable. car rental and etc. airport taxes. administrative fees and purchase of Xpress Boarding. e) Services Go Holiday is an expansion of AirAsia online reservation on www. Page 7 of 25 05Sep2009 .com/site/my/en/pressRelease. (http://www. AirAsia announces that they will enhance their facilities to accommodate the needs of its disable guest.airasia. Under certain circumstances they may require the guest to travel with a companion too. Point collection on credit card can be converted into AirAsia vouchers to redeem free flights. Its value added services that compliments their low airfares with value for money hotel rooms. On 4 August 2007. whereby they offers hotels.htm) AirAsia promote their brand and raise awareness of the airline being the sports sponsors with many world famous names such as Manchester United.com/creditcard/my/contest/citibank_promo_fares. (Press release.Individual Coursework AirAsia launched AirAsia Citibank card partner with Citbank on 12 July 2007. AT&T Williams Formula 1 and English Premier League referees. (The Star 12 July 2007).

Observe due measure. in flight service procedures. Page 8 of 25 05Sep2009 . the technology introduce to eliminate long check-in queues in counter and minimize the manpower.microsoft. This gadget enables customers to keep update with live travel information such as destinations. Competent FA trainees to deliver better services. g) Technology development AirAsia boost their e-commerce business with launching of AirAsia Vista Gadget with Microsoft on 31 January 2007.com/malaysia/pree/linkpage4327. for right timing is in all things the most important factor (Hesiod). they can become your biggest asset (Bartram and Gibson. 2000).Individual Coursework f) Procurement AirAsia bought into fuel hedges to protect the business from the unpredictable market volatility when the experts and pundits prophesied that oil price would soon hit US$200. The credit crisis unfolded in 2nd half of 2008. however. itineraries and pricing and latest promotion. product knowledge and term and conditions. AirAisa has decided to unwind the hedges. Currently they purchase fuel at the low market price. AirAisa started their in-house Flight Attendant (FA) training in 2003. h) Human resources management Trained effectively. They launched self check-in machines on February 2009 (Press Release.18 Feb09). (http://www. while other airlines continue to pay higher prices for their hedged oil. aviation terminology. the training includes awareness on safety standards.mspx) AirAsia enhance their service and maintain their low cost strategy by increasing use of technology and new innovation.

AirAsia also create a seamless bridge of unity across Asia by consistently adding new routes which include city pairs that never exist. During credit crisis on 2008. cabin crew. i) Firm Infrastructure. After reviewing the strength and weakness in AirAsia. But it is an opportunities to AirAsia as most of the company cut expenses on business travel by switching from full service airline to low cost airline. engineers. we must consider the opportunities and threats in market place. everyone is having difficulties for the economy slow down. AirAsia join partnership with CAE to manage TRTO training.Individual Coursework AirAsia Academy is a TRTO (Tpye Rating Training Organization) to provide necessary training to all the employees which includes pilots. Page 9 of 25 05Sep2009 . Johor Bahru. AirAsia currently operates from six hubs located at Low Cost Carrier Terminal (KLIA). Bangkok (Thailand). and similar partnership with Aviation Australia to provide aircraft maintenance engineering training. ramp support and guest services front –line staff. Kota Kinabalu. it enables AirAsia to flies to over 60 domestic and international destinations and operates over 500 domestic and international flights daily. it allow AirAsia adding Singapore routes which has proven to be high yielding and is expected to deliver sustained profit. ASEAN Open Skies allow unlimited flights among ASEAN's regional air carriers beginning December 2008. Jarkata (Indonesia) and Bali (Indonesia). On the other hand.

Page 10 of 25 05Sep2009 . quality services and dependability LCC. AirAsia has added value and strength to maintain their low cost strategy and striving for continuous improvement in terms of service. Jr) In summary. The boom of new establish competitor from full service airline on low cost subsidiary such as MAS has created Firefly is a threat to AirAsia. such as airport departure. security charges and landing charges. Adding value has become more than just a sound business principle. “Now Everyone Can Fly”. AirAsia positioning themselves as the lowest fares. AirAsia has made flying affordable for more than 61 million guests (Annual Report 2008). with the unmistakable tagline. The tightly regulated international intraAsian market is a major obstacle to the full-scale development of low cost carriers in the region I view today’s economy as the Value economy. technology and new innovation. it is both the common denominator and the competitive edge (Arthur Levitt.Individual Coursework There are some other factors that beyond control that affecting AirAsia’s low fare policy.

Focus strategies can be either based on cost leadership or differentiation. involving “substantial enough to make a difference” and “sustainable in the face of changing conditions” (Walker 1992. Most popular no frills strategy is pursued by LCC whereby customer is clearly understanding that they will be serve by operating the flight services at lowest fare. the three methods for creating a sustainable competitive advantage are through Cost Leadership. while cost differentiation strategy is indeed based on the product’s characteristics. seat arrangement etc. which anyway the customers were not bothered about.Individual Coursework 4. Page 11 of 25 05Sep2009 . The key strategies contributing AirAsia as cost leadership are: Safety First by complies with the condition set by regulators and partner with renowned maintenance provides to ensure its fleet is always in best condition. Differentiation and Focus. According to Michael Porter.0 Competitive Advantages A competitive advantage is a “fundamentally advantageous position from which to compete”. The competitive advantage of a cost leadership is more concerned with process efficiency. AsiaAsia is one company that continuously strives to reduce cost and in the market place it has got the image of “World’s best low cost Airline” and “Now everyone can fly” with the affordable airfare they offered. Cost leaders typically concentrate on delivering a product of competitive quality at the lowest price with saving on the particular feature or facility that customers do not care. p35). prompt schedules and keeping clear of facilities like baggage transfers. use standard production processes. and seeks high market share in order to reduce unit cost (Philips et al 1983). Firm following cost leadership strategy accept cheaper components. meals.

Singapore Airlines has consistently outperformed its competitors throughout its history. Singapore airlines position its image as “Stretch out. which any way the customer were not bothered about. Singapore-based Tiger Airways and Jestar Asia and Thailand-based One-Two-Go. No Frills by keeping clear of facilities like baggage transfer. many others have followed and expending their market share like the Malaysia-based Firefly. p. Differentiation provides excess returns by permitting higher prices for a unique product offering. Singapore Airlines has achieved its outstanding performance and sustained its competitive advantage. The customers for Singapore Airlines will enjoy the highest standard of quality service and innovation across all classes.  Streamline Operations by working with single aircraft fleet to reduce manpower and stocking of maintenance parts. Rejuvenate” in the Asian market. The cuisine provided is created by their Page 12 of 25 05Sep2009 .315). 2003.Individual Coursework  High Aircraft Utilization with quick turnaround of 25 minutes and increase staff productivity. Following AirAsia’s success. Bangkok Airways and Nok Air. Point to point network AirAsia has awarded as “Best Asian Low-Cost Carrier” by TTG Travel Awards 2008 and “Aisa’s Best Budget Airline” under Best In Travel Poll 2008 by Smart Travel Asia. and most often characterized by superior quality of product (Philips et al 1983).. through effectively differentiation in service excellent and innovation.   Lean Distribution System by issuing of e-ticket.com.  Low Fare. meals seat arrangement etc. Luxuriate. In this industry environment. Kotler argue that differentiation is the process of adding a set of meaningful and valued differences to distinguish the company’s offering from competitors (Kotler.

AirAsia X extends AirAsia’s proven business model and brand into narrow market for long-haul distances over 4 hours flight time across Asia Pacific region. the firm concentrates on a few selected target markets rather than across the entire market. the differences is AirAsia adopt a broad competitive scope while Airsia X use their core competencies to serve the needs of a particular customer group in airline industry. understanding of customers’ needs. quality. Singapore Airlines has awarded the “Best Airline” in Asia and South East Asia by Skytrax World Airline Awards (UK) in 2008. Eva Air is the brand that won Trusted Brands Awards in terms of trustworthiness. and the ability to innovative. In order to be successful in the differentiation sector it has always been necessary for airline to be innovative and brand building.Individual Coursework International Culinary Panel of world-renowned chefs. The focused differentiation strategy applies the principle of added value within a small segment of a market rather than across the entire market. value. Eva airline differentiate their service by launching a new concept fleet incorporating Hello Kitty especially for Hello Kitty lover and children. through use of the focused cost leadership strategy. credibility of image. The opportunities may exist because the firm may able to serve a narrow market segment more effectively than industry wide competitors and the small niches that large companies overlook. Page 13 of 25 05Sep2009 . The key strategies contributing AirAsia X as focused cost leadership are exactly same as AirAsia. Focus strategy also called as segmentation strategy or niche strategy.

Andy Kleitsch. Page 14 of 25 05Sep2009 . On the other hand. even surpassing the growth rate of computer / internet users (Tony Fernandes. its means that use of wireless handheld devices or wireless mobile computing devices to perform trade. 2005).” M-Commerce or mobile commerce is known as next generation’s of E-Commerce. “Mobile. cut down operating cost and expand our services to market with low computer / internet penetration” said Tony Fernandes during launching of m-Commerce on Press Release. According statistic provided by e-marketer on 2009. Mcommerce is the blessing for everyone in this modern era where everyone needs fast and reliable access to internet regardless of time and space. Mobile phone users have more than quadrupled in the pass few years. CEO of Billing Revolution comment that “There clearly a large US population of consumers opens to the ideal of making purchase via their cell phone. Personal Digital Assistants (PDAs) and etc. cell phones with GPRS. The wireless handheld devices that use for M-commerce are palmtops.3 million at 2008 to 308.0 m-Commerce Durlacher (1999) defines m-Commerce as “any transaction with monetary value that is conducted vis a mobile telecommunication networks.7miilion in 2013 (Table 3). video game consoles (example MS Xbox). the mobile phone subscribers in US will be increase from 270. Billing Revolution survey conducted by Harris Interactive shows that 71% of US adults felt that it’s safe to make a purchase via their mobile phone (Table 3). more secure and scalable.com would enable AirAsia to reach out to even more consumers. smart phones with WAP.airasia.” There is wide speculation that M-commerce will surpass E-commerce as the method of choice for digital commerce transaction as the content delivery over wireless devices becomes faster. reliable.Individual Coursework 5.

i-Mode Phone. memory. bandwidth capacity. PalmOS .1 Differences of e-Commerce and m-Commerce Without doubts that there are similarity between e-Commerce and m-Commerce. operating system. Unix . supporting operating systems and availability of internal smart card reader.Individual Coursework 5.com/mcommerce/differences. functions and advantages. HDML . Proprietary platforms HTML . TDMA . but m-commerce has it own unique characteristics.com UP browser .htm Basically the devices used for m-Commerce is mobile in convenience size and can be accessible to the internet through satellite at anywhere and anytime. Smart phones with WAP . GSM/GPRS . Pocket PC . CDPD . we may not view the screen as whole and miss out some Page 15 of 25 05Sep2009 . such as size and color of display screen.mobileinfo. Cell phones with GPRS . Each mobile device has certain characteristics that influence its usability. Technology Device E-Commerce PC M-Commerce Palmtops . Nokia browser . Video game consoles (example MS Xbox) . Personal Digital Assistants (PDAs) Symbian (EPOC) . CDMA . Paging networks Operating System Presentation Standards Browser Bearer Networks Windows . input device. WML . unlike eCommerce is only limited in those area where we have internet connectivity with PC at bigger size. presentation standards. For example if the display screen is too small. Linux HTML Microsoft Explorer Netscape TCP / IP & Fixed Wireline Internet http://www. MS Mobile explorer and other GSM . The differences of e-Commerce and m-Commerce can be categorizes into devices used. browser and bearer networks as below.

cash or credit card. entertainment and created a lot of new convenience in marketing of product and services. but finally it provide the same result as Chaffey (2004) and Kotler (2003) said “ its has reached millions of homes bring enough information. E-Commerce and m. Basically we are getting information through m-Commerce rather than of transaction-based as e-Commerce. m-payment system required special software to run the full-fledged payment system and it is problematic. For example information on flight schedules. There may have some differences between e-Commerce or m-Commerce as discussed above. But due to storage and processing constrains of mobile devices. travel directions. mobile screen savers. There are various e-payment systems that implement such as eCash. Page 16 of 25 05Sep2009 .Individual Coursework important information. online banking information and others. dinning guide.Commerce also have different application to capture opportunities in different perspective. cheque. While we may not face this problem in e-Commerce as the devices used – PC or laptop has full accessory to support its function. NetCash and MiliCent in e-Commerce. Customer may prefer to use m-payment or traditional systems such as direct debit. Purchase of ring tones. games and voting through SMS technology is growing in market too.

AirAsia needs to work closely with Microsoft to develop a comprehensive. emails. Ultimately with information gather. such as destination. pricing and even online booking directly from the Window Vista at anywhere and anytime.Windows Mobile on 16 February 2009. legacy carriers also slashing fares on main routes to compete with low cost airlines. The idea of Microsoft Vista is that you can look at your mobile device to see where you are supposed to be or you are meeting with next by viewing the screen.Individual Coursework 6. Many airline have terminated under-performing services. which is more finger friendly and more accessible to the information required through mobile devices. Microsoft introduce new version of Microsoft Vista .0 Recommendations The competitive environment has gone awry amid confusion. the screen is presented with icon of voicemails. This will allow AirAisa customers to can access live travel information. yet simple distribution system that capable of handing the most technologically savvy customer to the most technologically deprived. Page 17 of 25 05Sep2009 . text messages and date and time of your next appointment (Figure 4). itineraries. Customer can plan and organize their trip by using the phone’s internet features. Microsoft Vista also enables customer keep updated with latest news and travel promotions.

such as Windows Vista. pricing and thus online booking directly from the Window Vista at anywhere and anytime Page 18 of 25 05Sep2009 .1 Benefit of Microsoft Vista and m-Commerce to AirAsia “We believe in leveraging on leading edge technology.2 Benefit of Microsoft Vista and m-Commerce to Customers Customers can access to AirAsia website checking on travel information. AirAsia able to strengthen its competitive advantage and reinforce its commitment to customer service excellence. 31January 2007). 6. to enhance the customer experience with our brand. such as destination. ultimately the application of Microsoft Vista into m-Commerce will enhance the effect of expanding into wider market. AirAsia Executive Vice President during launching of AirAsia Vista Gadget (Press Release. itineraries. Since promoting Microsoft Vista in e-Commerce will help to expand their market channel.Individual Coursework 6. The collaboration allows us to expand our marketing channels by providing instant information on AirAsia’s promotions and updates to the region” said Kathleen Tan. By taking advantage of Vista technology. AirAsia able to promote their brand and raise awareness as said by Microsoft Malaysia Managing Director Yasmin Mahmood (2007) “Organization are recognizing the branding and commercial value of such innovations as the sidebar gadgets on Windows Vista”.

customer can visit AirAsia website to see if the flight is on time.Individual Coursework Window Mobile enable AirAsia’s customer for planning. Customer even can check in boarding pass up to 24 hours before flight by using web check in facility. or checking state transportation sites for traffic conditions. By using the phone’s internet feature. organizing and entertaining. Page 19 of 25 05Sep2009 .

0 Conclusions Low cost carriers have reshape the traditional airline business model and have significantly change the competitive dynamics of the industry.Individual Coursework 7. Page 20 of 25 05Sep2009 . AirAsia should thus poised to challenge their competitor by implementing technologies to enable it to position themselves as a forerunner in technology. But the report has revealed that customers are willing to accept their cost leader strategy which is no frills. The successful of AirAsia in ASEAN significantly show the importance of eCommerce & m-Commerce assisting AirAsia to simplify their operation. AirAsia seems to value added in operation and optimum the strength of their organization in order to gain competitive advantages. Value is not determined by the firm but by buyers in the amounts they are willing to pay for the product or services (Rayport et. Al. Overall. efficiency. industry leading punctuality. 2003). 1999). Sustainable competitive advantage is a journey not a destination – it is like tomorrow which is inescapable but never arrives (Chaharbaghi and Lynch. hassle-free in exchange for low fares. productivity and high utilization of assets to offer low fares. the 5-Star quality in airline industry. The successful model strictly adheres to the containment of operating cost.

repair and overhaul (MRO) facility. it cannot automatically transferred from one flight to another. Outbound Logistic Marketing Sales Services & Procurement Technology Development Human Resources management Firm Infrastructure Opportunities Threats Page 21 of 25 05Sep2009 . to maximize aircraft utilization by 12 hours per day with load factor ± 80%  Do not establish own maintained. Risk to maintain quality.  Partner with Citibank  Brand building exercise as Sport Sponsor for Manchester United and AT&T Williams Formula One team  Provide after sales services by linking with other service provides like hotel in their route. Inconvenience to customer. influence purchase decision.  Poor on time delivery performance caused huge lose on cost of delay  Adopt simple point to point network . less training and servicing cost  Partners with GE Aviation to ensure the fleet is always work in proper condition and safety first.  Launch self check-in machine to eliminate long queues & minimize manpower  Provide in-house Flight Attendance training to ensure the employee’s is competency.time saving on transit  Landing at Low Cost Terminal.  Insufficient care for Special Service passenger compared to full service carriers  Bought fuel hedges to protect company losses on oil price increase. MAS has created Firefly  The tightly regulated international intra-Asian market is a major obstacle to the full-scale development of low cost carriers in the region.  AirAsia Academy to provide necessary training to all level of employees  Operates over 500 domestic and international destinations from 6 hubs. security charges and landing charges  Establish of new competitor . threats to company security and confidential issue. no airport lounges. many firm are change to use budget airline instead of business class  The ASEAN Open Skies allow unlimited flights among ASEAN's regional air carriers beginning December 2008.  High frequency flight and reduce turnaround for 25 minutes.Individual Coursework APPENDIX Porter’s (1985) Value Chain & SWOT analysis Primary & Support Activities Inbound Logistic Operation Strength & Weakness  Replacement new Airbus A320 to reduce fuel consumption & overcome the increase of oil price  Reduce stock of part maintenance. Airport departure.Full service airline have create low cost subsidiary to compete with AirAsia. provide E-ticket rather than printed ticket to cut cost.  Launch AirAsia Vista Gadget with Microsoft to update customer latest information.  Airport charges are beyond of AirAsia.  Increasing oil price and due to the slow down economy.  Consistently adding new routes included that never existed before.  Point to point networks also apply to luggage.

Individual Coursework Porter’s Generic Strategic Model COMPETITIVE ADVANTAGE LOW COST DIFFERENTIATION Characteristics:Characteristics:1) Low Cost 1) High quality & high price 2) No frills 2) Brand building 3) Simple operation 3) Unique Example: AirAsia. FireFly Example: Singapore Airline COMPETITIVE SCOPE BOARD NARROW / FOCUS Example: Asia X Example: Eva Air Table 1 Table 2 Page 22 of 25 05Sep2009 .

Individual Coursework Table 3 Figure 4 Page 23 of 25 05Sep2009 .

2007. 49-62. NJ: Prentice Hall Phillips. D. Journal of Air Transport Management 8. (2004) E-business and E-commerce Managament. 2008. the new economy and opportunities for airports. K.htm. L. 241–262. Chang. 2009 http://www.airasia. A & C Black Publishers Ltd 2006. & Lall. Sustainable competitive advantage: towards a dynamic resource-based strategy.. Upper Saddle River. The economics of the Internet.airlines.Individual Coursework REFERENCES AirAsia Berhad. 2007 http://www. Tony Fernanders (2005).airasia. D. Electronic Commerce Research 4. AirAsia Berhad.com/site/MY/en/ Page 24 of 25 05Sep2009 .com/creditcard/my/contest/citibank_promo_fares.mspx. “Introduction to E-Commerce”. Bartram... 47.microsoft.org/economics/cost+of+delays/. Microsoft. Rayport & Jaworski (2003). A. Amherst. Buzzell (1983) "Product Quality. New York. 2nd Edition. (2004). Harlow. (2000) The Training Needs Analysis Toolkit. P. & Gibson B.com/site/my/en/pressRelease.jsp?id=4322bb92-ac1e00ae1ad0d890-a7d011e3. Electronic commerce for the south pacific: a review of e-readiness. Cost Position and Business Performance: A Test of Some Key Hypotheses. & Lynch. Press Release http://www. pp. Int’l ed.. 11th Ed. Annual Report. Spring. and R.. MA: HRD Press.. Mobile Commerce Report. Gillan. 2nd ed. 2nd ed. D. (2003).. 2002. UK. http://www. 2 nd ed. Marketing Management. Annual Report. p104 Chaffey. R (1999). S.com/malaysia/pree/linkpage4327. F. Durlacher (1999). FT Prentice Hall. Purcell. and Toland. J." Journal of Marketing. 2008 http://www. Inc Business The Ultimate Resources. Chaharbaghi.airasia. 26-43. Air Transport Association. AirAsia. AirAsia. McGraw Hill. pp. Durlacher Research Ltd. 2007 Kotler.

Human resource strategy. Page 25 of 25 05Sep2009 .jsp? Walker.W. (1992). New York: McGraw-Hill.Individual Coursework pressRelease. J.

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