Essays on Strategic Management and Competitive Future Sustainability for Air Asia Airlines Case Study

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The paper "Strategic Management and Competitive Future Sustainability for Air Asia Airlines" is an inspiring example of a case study on management. Air Asia Airlines is a Malaysian airline that has its headquarters in Kuala Lumpur, Malaysia. It is the largest airline with a fleet size of 80, a figure that does not count its direct subsidiaries. It is also the airline that travels the highest number of destinations within and outside of the country. Some of the affiliates of the airline include Air Asia Berhad, Air Asia Indonesia, Thai AirAsia, Philippines AirAsia, AirAsia India, Air Asia Japan, Indonesia Air Asia, and Air Asia X, among others.

Air Asia Group of Airlines is also the largest low-cost airline in Asia, making it have an advantage within the highly competitive airline industry (Air Asia, 2017). The company was established in 1993 and has been in operation since 1996. One of the major core competencies of the airline is that it is a low-cost airline as compared to its competitors for the same markets. This level of competency has allowed it to grow to a large airline with subsidiaries operating in more than 400 destinations within 25 countries.

Other key competencies include safety measures, a lean system of distribution, point-to-point networks, and high aircraft utilization (Grant, 2016). Some of the key resources of Air Asia Airlines include the high capital, large fleet of airplanes, strategic location, a consistently impressive reputation, and human resources capabilities. Although challenges are increasingly evident in the Asian airline industry, there are opportunities that present themselves as the airline’ s capabilities, such as increased demand for flights at affordable prices. The company has the capability to exploit its resources because of the availability of capital, investors, a good reputation, and an increased market.

However, there is a need to recognize threats that are presented as competition and safety airline risks, among others (Truss, Mankin, & Kelliher, 2012). Another competency is the ability of the airline to develop airline technology that makes work easier for travel, operations, and economic savings. On a VRIO framework, the airline provides customer value and competitive advantage. This is because of the low-cost air tickets, which is something that its competitors do not have.  

References

Air Asia, 2017, Air Asia Mission, Vision, and Values. Retrieved 07 February 2017 from http://www.airasia.com/my/en/about-us/airasia-mission-vision-values.page

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Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.

Ireland, R D, Hoskission, R E & Hitt, MA 2009, The management of strategy concepts, 8th edn, South-Western Cengage Learning, USA

Kaminski, J., 2011. Theory applied to informatics-Lewin’s change theory. Canadian Journal of Nursing Informatics, 6(1).

Paton, R.A. and McCalman, J., 2008. Change management: A guide to effective implementation. Sage.

Saha, G.C. and Theingi, 2009. Service quality, satisfaction, and behavioural intentions: A study of low-cost airline carriers in Thailand. Managing Service Quality: An International Journal, 19(3), pp.350-372.

Singh, K, Pangarkar, N & Heracleous, L 2010, Business strategy in Asia a case book, 3rd edn, Cengage Learning Asia, Singapore

Truss, C., Mankin, D. and Kelliher, C., 2012. Strategic human resource management. Oxford University Press.

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