Question 3: Suggest strategy can be adopted by Air Asia to remain competitive in the market

(5 Marks)

There are many strategies that can be applied for Air Asia to stay ruthless in market. One of
strategies that Air Asia can implement is to enhance employee-management
communication. Since AirAsia's company structure is relatively flat and it will make it simpler
for workers to provide feedback and suggestions. By including employees in team meetings,
they should feel as if their opinions are valued. This will formulate fresh and accurate ideas
that will lead Air Asia into a better airline company. On top of that, once the employees feel
appreciated when their ideas and suggestion has been listened by Air Asia, this will make
the employees feel energetic to do their jobs and indirectly, will lift Air Asia’s performance
and services. Moreover, Air Asia Berhad can boost Air Asia's main flaw, which is its poor
and constrained service. In order to do that is by providing a good training for the employees
of Air Asia Berhad and enhance the authorize by the management so it will smoothen up the
operations of the company. Not only that, bad feedback from the customer also can be
quickly addressed and solved by the management of Air Asia Berhad. This can magnify
customer satisfaction towards Air Asia Berhad’s service and professional management. Next
strategy is Air Asia needs to be mindful of its opportunities and take advantage of them. In
order to achieve this, Air Asia Berhad should match capacity to demand. This means that a
flexible strategy for allocating resources (including personnel) to meet demand fluctuations is
required. AirAsia has a large number of resources that are distributed during peak travel
times or when demand is expected to rise. 

Summary of the case study

To sum it all up, Air Asia has many strengths and one of them is Air Asia is very great at
expending the amount of skill workers and this strength is one of the reasons that make Air
Asia still competitive in the airline industry. Meanwhile one of the weaknesses of Air Asia is
poor and limited at their services. This could be a threaten factor if Air Asia does not
acknowledge this weakness that can damage their company reputation.