Q1.Analyze the current situation facing MAS and Air Asia using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place. The goal of an organization is to reach and achieve optimal purpose. They want to make the most out of their atmospheres and existing environments in order to their accomplishment. External factors are the one that affect an organization indirectly, such as: •Political •Social-cultural •Technological
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16 Pricing Strategies | Definition | 1. Cost-Based Pricing | A pricing method in which a fixed sum or a percentage of the total cost is added (as income or profit) to the cost of the product to arrive at its selling price. | 2. Product Bundling Price Strategies | An advertising ploy in which a few items are offered available to be purchased in one consolidated unit that is regularly stamped at a lessened value contrasted with the entirety of their different buy costs. Item package estimating
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2 2. OBJECTIVES 2 3. LEADERSHIP STYLE 2 1. Vision and Judgment 2 2. Courage and Determination 3 3. Symbiosis, Charisma and Integrity 3 4. ORGANIZATIONAL STRATEGY 3 1. Safety First 3 2. High Aircraft Utilization 4 3. Low Cost 4 4. Streamline Operations 4 5. Lean Distribution System 4 6. Point to point network 4 7
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Air Asia: Flying Low Cost with High Hopes A cost leadership strategy of Air Asia remains viable despite the changing external environment. Although competition and rivalry amongst budget airlines is high, and it is difficult to differentiate from other providers due to the nature of the industry and product, it still has a first mover advantage which makes cost-leadership remain viable. They must remember that a cost leadership strategy can be maintained by be being efficient in all aspects of
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Executive Summary Malaysian Airlines System Berhad is the holding company for Malaysia’s national airline carrier, one of the fastest growing airlines in Asia. Malaysia Airlines has three airline subsidiaries, which is Firefly, MAS wings and MAS cargo. Although MAS had provide an excellent services and won many award, they still facing financial problem since year 2002. Situation become worse in year 2014 due to the MH370 and MH17 tragedies occurred. MAS are facing three main problems. First
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Roles of information system in Airline Business Air Asia’s business strategy is centered on cost leadership and targets specific markets which are price sensitive customers (including 1st time fliers) who needing the short haul flights. According to Porter’s generic strategies (1985), cost leadership is one of them. Air Asia has to offer the lowest possible fare amongst all airlines in LCC (Low Cost Carrier) industry whom compete on costs in order to win the competition in current markets as well
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----------------------------5 Lost Cost Carrier [LCC] Business Model----------------------------------------------------------------9 Current Issues / Problems---------------------------------------------------------------------------------13 Strategy to solve problems-------------------------------------------------------------------------------19 Conclusion-------------------------------------------------------------------------------------------------23 References------------------------
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analysts and stakeholders. The analysis is also based on a review of the airline industry literature as well as the personal reflections of the authors in drawing together some key issues and insights that may help formulate, inform and prepare SIA’s strategy for moving forward into the unpredictable future. This paper begins with a simple model for considering strategic and economic issues in the global airline industry. After this, we examine the Past, where a brief history of the airline industry is
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For this case, the company has chosen to identify what the system that they use in managing their information and data in their company. The company that has chosen is Air Asia Airlines. Air Asia has been successful low cost carrier in operating in Asia region for these past few years and IT is one the major enables for the Air Asia’s low cost business model. Every single primary activity is supported by specific information technologies, for example, utilization of Computer Reservation System (CRS)
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Group, a well-known low-cost airline around the Asia, which ownsby a parent company name “Tune Group”. This company was actually founded by “DRB-Hicom”, which is a company own by Malaysia’s government back in 20th December 1993 and started their operations on 18th November 1996. Unfortunately, the company’s performance not doing very well for few years until it was 2nd December 2001, the day that this airline taken over by Tony Fernandes, the CEO of Air Asia Group. Since then, Tony Fernandes performance
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