In today's world economy, information technology (IT) has driven fundamental changes in the type and also the application of solutions in a company. The usage of IT in its value string provides the company a very strong strategically and tactical tools. If these tool are properly applied and used could bring great advantages in promoting and strengthening the competitive advantages.
In order to gain more market show and maintain its competitive benefits to be very low cost carrier nowadays high demanding environment, Air Asia will try to build up new means of make the clients, suppliers loyal. Focus on provider and alliances and the client will drive positive principles to Air Asia can perform. Customer romance management application will be one of the regions of strategic execution that company can target to attain high worth to both Shareholders and Customers.
Customer Relationship Management (CRM)
Customer segmentation-mileage- founded segmentation is insufficient, rather should focused on value-based and needs-based strategies can be guide investment decision and drive greater understanding into needs of high-value customer.
CRM initiative development-to not the same as the other opponents' methodology e. g. putting in kiosks for the fast check in. Air Asia should implement CRM program in favour of buying initiatives with a high return, which respond to the needs and desires of their own customers.
Organizational design and management-Air Asia must coach the employees' empowerment them with a complete view of the customer and plainly fluent the employees' role in the CRM strategy.
Advanced and stylish CRM information system will include the key functions that are;
Site personalization for on line customer to generate travel plan, bundled services information, plane tickets notification systems, and gate information displays etc.
ITA search engines, roving agent check-in, kiosks, internet check-in, and mobile check in systems etc.
Membership based mostly or point structured rewarding system offering to the appropriate customer.
Email promotions and promotion system are used for marketing.
Web based personal services such as e-ticket booking and reservation, online baggage tracing. RFID baggage tags, internet lounge, and in air internet services.
Dynamic update and multidimensional accounts that helps management to do analytics in various areas, such as customer profile.
To justify the investment and implementation opportunity of the CRM program, Air Asia is preferred to look into the ROI and financial impact to the shareholder value influenced by each one of the CRM initiatives.
By taking the steps to apply a truly consumer-centric approach to marriage management, Air Asia will maintain better position to realize, develop, and retain quality value of the clients
Company needs to be the lowest short-haul airline in every market it runs, that why they are employing some strategies such as Low fat cost structure, different ways of promotion, keeping safety, gratifying guests and expanding human learning resource very strongly nowadays. Air Asia always tries to keep their procedures as simple as they can.
To find out the inner factors such as Advantages and Weakness, and exterior Opportunities and Risks to business target, a SWOT research of Air Asia can be conducted;
Low cost operation
Fewer management level, effective, targeted and aggressive management
Simple proven business model that consistently spread that the lower fares
Penetrate and motivate to the actual markets
And multi skilled personnel means useful and incentive workforce
Single kind of Air buses lessen the maintenance cost and easy for pilot dispatch
Streamline Operation: making sure that the operations are as easy as possible, that customer can plan and utilize it with no difficulty
Lean Distribution System: supplying a wide and ground breaking rang of distribution channels to produce a booking and take a step toward a going easy
Point to point network: making use of the idea to point network continues operation simple and low priced, that it hook up the booking offices with call centres
Partnering with the world's most renowned maintenance service provider company and complying with the air travel operation in the world.
Implementing the locations most effective turnaround at 25 minutes only, assuring lower cost and higher productivity
Due to lower costs the services possessions are limited, so someone can think that Air Asia cannot provide as well as they advertise
During unusual situations the company could not manage them well with limited range of personals
Government disturbance and rules on airport offers and traveler compensation
Non central location for secondary airports
Its low cost strategy makes the brand crucial for market position and development is obviously an issue for Air Asia's management
One of the weak point is that the business trust intensely on outsourcing, it shows the environment Asia depends on other for some of their jobs and seems not good for company's repute in the customer's mind
New entry to supply the price delicate services
Providing guests with the choice of modify services without reducing on quality and services.
Long haul flights an experiment to get underdeveloped market talk about, which is better for the business's growth.
The Air Asia can distinguish from traditional LOW PRICED Carrier model with the addition of customer services or functioning as a full services flight with low fare for the haul plane tickets.
Ongoing industry thought has opened up projection for new routes and international airports deals, by causing such kind of deals the company expand his business
High inflation rate and also fuel prices will pinch out unprofitable competitors
Keeping in view the current economical situations the entire services airline trim their cost to remain competitive.
Other companies like Virgin etc may think towards LOW PRICED Carriers (LCCs)
In the approaching time the high rates of fuel decrease the produce of the company is a huge menace for them
Accident, terrorist harm and disaster influence customer self confidence.
For example on 28 July 2010 a airplane crash in Pakistan and almost a month down the road 24 of august 2010 there is a another planes crash in China, these kind of accident creates any doubt in the mind of customers. Because of the (Air Asia) low priced model individuals may think about that there is risk involve like services and safe journey. I believe this is a major threat nowadays that Air Asia can face.
Aviation legislation and government policy, Air Asia's ongoing business in long haul plane tickets have always threat for the changing policies of the those countries and day to day changes in the rules of the international airport authorities
Increase in procedure cost in producing value added services, as Air Asia X using value added services by long term flights so it ends in increase their operation and value additional cost.
As Air Asia policy from the January 2002, company notion online seat booking and also online air travel timetable but a risk is definitely there that the system disorder can occur big problem for Air Asia's online system
Economical factor of Air Asia
According to the revenue and loss bank account of company it was good in '09 2009, weather it receive reduction in 2008 credited to power hedging and the problems situation in Bangkok. The business bear much loss upon their brief and long contracts when gasoline price shot to the roof top before collapsing around the finish of yr. On November 2008 the company abolish gasoline surcharges. It is the first air range on earth to abolish fuel surcharge. As other air lines are downsize with lowering in travel, because of global economical circumstances. In '09 2009 and this year 2010 Air Asia expands its procedures. The companies concentrate on to get around one Million customers in 2008, adding new strategies and also bringing out new areas like India etc. By the end of 2009 and start of 2010 Air Asia goals get 5. 1 million in 2009 2009 that is 4. 2 million up that was at 2008. The new programs were operate usefully towards new locations like India, China etc.
The Air Asia asked the client to come and be a part of photography competition in a sense of making quest Happy with Them(AIR ASIA), the success of this competition will be awarded a solution to Bangkok with accommodation and other offers so on that to get market penetration.
From 2009 the business starts scholarship for students related to pilot courses this is another make an effort to have more market penetration in term of Air Asia's sales and make the customer enthusiastic about their new routes and keep carefully the existing and the as clients.
These Air Asia using Cultural security assessments for buying solution on special prices.
Red Megastore. They start red megastore for online services for the purpose of make more simplicity for the new and little informed customers to buy Air Asia's offered facilities. As we know the prospective customer of Air Asia is less informed, Middle income and small business men's, so this plan works very successful for the business.
The customer satisfaction on company is determined by four variables that are Basic safety, Service Quality, Price and Promotion;
The protection factor relates to the Engine and other parts operate during flight
Take a proper care of the hands caries and ensure that there is better place for the kids with no disturbance
The company have much give attention to the insurance of travellers while they travel
Good manners of attendance during flight
The journey attendants' are incredibly skilled, experienced and charming
The Attendant's must offer their services with keeping in mind of serving
Equality of ticket price
Offer the reduced comparative price
Air Asia was very care while lunching offers they should be Interesting, After a reasonable time and also good frequency of lunching promotions
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