MOHAMMAD NOR HUZAIFI BIN NOR ASMADI

INTRODUCTION

 AirAsia is one of the leading airlines corporation of Malaysia that performed exceedingly well in terms of its past investments and the profits that it made out of it after it’s relaunch. It was acquitted by a private entrepreneur Tony Fernandes when it was highly under debt. The sudden changes in the profit graph came to the surface soon when it announced its first profit right in seven months of its re-launch. The innovations in strategy and investments brought immense amount of profit to the company in the following years. It invested amounts on new and effective services and cut shorted various not essentially required expenditure to reduce the overall cost. The AirAsia opted for various cost-effective, customer-oriented and highly innovative strategies to shape its business model to reach its ultimate missions and objectives. With its innovative low-fare, no-frills concept it highly reduced the cost of air ticket such as by having just a single standard cabin, paid meals instead of pre-paid free meals, etc. The corporation found efficient ways of reducing the expenditure on travel by the customers while expanding its domestic and international business. Like for example, the short-haul flights took less than four hours for travel which provided it opportunity of having the return of the flights on the same day conserving many of the expenses of the corporation. The company also launched its long-hauled air services at the time when many of the LCCs were reluctant for that. All the strategies or mix of strategies were consistently aiming at gradually achieving the goals and the objectives of the corporation and dynamic with the changing internal and external environment.

MISSION OF AIRASIA

The mission of the corporation is to provide high-quality but low cost flying services to all type of passengers. The corporation being a part of airline industry, it missions to become the leader of the market by implementing its smart strategies and sharp business skills. As quoted by its owner Fernandes, he overtook the corporation during its declining stage as he advocated the correctness of time to enter the market because of charter aircraft price and abundance of skilled aircraft staff. The company has been consistent in following its goals and objectives throughout in its performance in the past decade. The corporate objectives were innovative and highly efficient with its symbolic acquisition of its own by Tony Fernandes, joint venture with Thailand Shin Corporation, Awair, Singapore’s Tiger Airways, etc to provide a broad destination options for its customers at the right times when it was needed.

The physical environment around the corporation’s site of business is climatically categorized as equatorial, being hot and humid throughout the year. The climate is favorably well enough to support the flight take-off, landing and flying. The physical location of Malaysia also favors the growth of the organization as it is well connected to the seas and oceans and so for its long-haul regional services, the corporation does not require to manage the permissions to cross the airbase of other countries. In this way the surrounding physical environment of Malaysia provides fair opportunities for AirAsia. Coming to the threats involved with the natural environment, the well connection of the country to other continents through seas and oceans provides enough opportunities for the journey through ships and Cruzes too which somewhere indirectly can effects the market of AirAsia. The Malaysia, Thailand and Indonesia is also a prone area for tsunamis and earthquakes that could affect any industry. The hot and humid climate also affects the working capabilities of the crew.

MARKETING STRATEGIES

The marketing strategies of the corporation have beaten all its major competitors both in terms of profits and customer’s satisfaction. The marketing managers have accepted these tools and techniques to evaluate the performance of a product. Marketing is highly dependent upon the political and socio-economic conditions prevailing in a country and hence same marketing strategy cannot be applied for adjustments in all the countries. The marketing takes an overall account in every dimension and hence the environmental sustainability has to be a guiding factor in marketing policies. The smart finance policies of finance showed a trend of financing the long-term goals and objectives without compromising with the immediate ones can be an effective way to earn maximum economic profits. The past effects are already shown by the AirAsia and in future it is expected no less. This analysis strongly supports corporation’s past and pending strategic decisions. The financial success in terms of returns provides company with a competitive advantage.

STRATEGIC FACTOR

The AirAsia strategic factor are divided into internal factor and external factor. This are some example of each factor:

Internal factor: 

1) The marketing innovations and its implementation.

2) The smart finance policies with the fixed priorities which should also be at the correct time.

3) The proper use of available manpower, avoiding confrontation among them for maximizing the proper functioning capability of the corporation.

4) The efficient use of the resources like Information Technology, etc.

External factor:

1) The government policies and the relationships with the government.

2) The natural environment and the calamities that can unexpectedly occur.

3) The economic, social and cultural factors of a country.

4) Rivalry with other corporations.

CONCLUSION

In conclusion, the important thing that i have learned from this reflection is how to start a buisness or create new company and lead them to be a successful company. Tony Fernandes, the owner of Airasia has show that we should be brave to take a risk in doing buisness to get a huge outcome. For examples, he  took a huge risk as he bought a debt-ridden airline in order to realize the low-cost flight potential shown that there is always risks and uncertainties with every decision made. Beside, i also learned how to be a good leader and that is very important for me to become a good engineer. For example, he always looking to the future and moving forward by taking any risk to make sure that Airasia become a successful company. Furthermore, I also learned about the strategic used for the big company. For examples, the corporation can further go ahead with more effective use of IT, the dual seat system can be implemented in domestic level too and the corporation has enough expanded where such strategies would be highly invited.