Sunday, 12 May 2013
Harvard Busines Case Study (HBS) AirAsia
Trends in the Global Airline Industry
Recently, the global airline industry has been focusing on cost cutting without affecting quality of services offered. This can be observed from promotions offering cheap flight tickets with more destination options advertised in their packages.
Business Level Strategy Adopted by AirAsia
AirAsia targeted to set "Affordable flight tickets" as the first impression given to their target customers. This was achieved by promotions of the cheapest tickets anyone can find.
How AirAsia Achieve Cost Leadership Through Differentiation
One of AirAsia's business strategies that differentiates them with other airline companies is that they allow their customers to customise their flight experience to the maximum. Unlike other airline companies that provide everything upon purchase of flight ticket (drinks, foods, snacks, pillows etc.), AirAsia allows their customers to pay for just what they require and skip those they do not. This way, AirAsia can offer cheaper flight tickets without losing money and keep their customer happy at the same time, which is a win-win situation.'
How AirAsia Sustain Competitiveness Through Adopted Business Level Strategy
AirAsia takes a good pride on their frequent and surprising "Big Sale" promotions which has set travelling as a trend to their target market as these promotions are often being used as an excuse for customers to travel as the fare offered is crazy attractive and affordable.
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