Air Asia Adding Value

Paper Summary:

In this article, the writer notes that the airline industry is characterized by a high level of competitive intensity and therefore Air Asia has to constantly reengineer its internal operations in order to build and maintain a competitive edge. In this respect, the strategic focus of the company is cost minimization. The writer discusses that the company is implementing the strategy of focus by targeting underserved markets while it is implementing the strategy of differentiation by adding value-added services to its repertoire. The writer looks at how Air Asia operates, focusing on the strategy of maximizing access to information. The writer points out that Air Asia locates opportunities for ensuring customer satisfaction through focusing on areas of the market which have not been targeted by competitors. The writer concludes that as a result, Air Asia manages to charge lower prices than many of its competitors while maintaining comparable standards of quality.

Outline:
Introduction
Evolution of E-commerce and M-commerce
Internal Environment Analysis
Strategy Formulation
Recommendations
Conclusion

From the Paper:

"Air Asia's application of Windows Vista can be extended to m-commerce because Microsoft has already developed operating systems for mobile phones. Therefore Microsoft will be in a position to create interoperability between e-commerce and m-commerce through the Air Asia gadget. Although m-commerce is wirelessly connected, it has the flexibility of being connected through e-commerce as well. This means that any solutions developed for e-commerce can be accessible through m-commerce. This will benefit the consumers because they will not have to be connected to the internet once the Windows Vista application is made compatible in the m-commerce platform. In this respect, the costs of conducting e-commerce applications are higher than m-commerce applications. E-commerce requires connectivity via a personal computer. With m-commerce the same amount of information can be processed through a cell phone."

Sample of Sources Used:

• Aaker, David A. (2004). Strategic Market Management. McGraw Hill/Irwin.
• Baldwin, Esther, and Martin Curley. (2007). Managing IT Innovation for Business Value: Practical Strategies for IT and Business Managers. Intel Press.
• Baschab, John., et al. (2005). The Executive Guide to Information Technology. McGraw Hill/Irwin.
• Dess, Gregory G., et al. (2007). Strategic Management: Creating Competitive Advantage. McGraw Hill/Irwin.
• Evans, James R. (2004). Total Quality: Management, Organization, Strategy. McGraw Hill/Irwin.

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