Business Strategy Air Asia. COMPETITIVE ADVANTAGECOMPETITIVESCOPELower Cost. Diff erentiation Broad. Target Narrow Target 1. Diff erentiation Focus. Figure 1 - Porter. Operation effectiveness andoutstanding efficiency are two main characteristics of low cost businessesincluding Air. Asia. The central objective is to achieve bigger cost advantages thanthe rivals by continuously searching areas for cost reduction along its valuechain. By further analysing Air. Asia. Appendix 2 summarisesthe sources of cost advantages contributable to the low cost business model for each activity in Air.
The Linde Group is a world-leading gases and engineering. Unique Setup-Linde company profile (PDF) Code of. Air Asia Strategic Management 1. Air Asia’s value chain activities: e) i). Asia. These cost advantages constitute Air. Asia. In LCC industry, cost isthe competitive priority and it determines market position. Environmental Scanning Environmental scanning is performed to assess the attractiveness of LCCindustry specifically in Asia. Macro- environmental scanning will be conducted byanalysing significant macro factors affecting the LCC industry while Porter. According to Sachs (1. Archipelago geographical structure of Asia continent is also contributable to theimportance of air transportation. For example, there is no other viable andefficient mode of transportation between East and West Malaysia other than byair (Lawton and Solomko, 2. While the impact of terrorism and SARS can benegative for the growth of LCCs, the long run forecast continues to be verypositive. Micro- Environment.
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