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Case Study Abi Sanni , Aly Remtulla, Kelsey Gamble, Kendra Jocksch , Nancy Moke

Case Study Abi Sanni , Aly Remtulla, Kelsey Gamble, Kendra Jocksch , Nancy Moke. Presentation Overview. Company Overview Problem Company Analysis Recommendation Conclusion. Company Overview. Company Vision.

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Case Study Abi Sanni , Aly Remtulla, Kelsey Gamble, Kendra Jocksch , Nancy Moke

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  1. Case Study AbiSanni, Aly Remtulla, Kelsey Gamble, Kendra Jocksch, Nancy Moke

  2. Presentation Overview Company Overview Problem Company Analysis Recommendation Conclusion

  3. Company Overview Company Vision “To be an airline that flies long-hauls with low fares with a corporate culture that is flexible and functional.”

  4. Company Overview Prior to 2002 Tony Fernandes had a vision. 2004 Introduction of international service 2007 Long-haul flights under AirAsia X brand 2009 AirAsia recognized as a successful LCC 2002 AirAsiawas re-launched with just 3 planes 2005 Adopted an ERP system 2008 4% ROA during recession Future Possibility exists to expand into other areas

  5. Company Overview Key Success Factors Single aircraft and single class Outsourcing Wireless delivery system Human resource policies Deregulation Tourism

  6. Problem Should AirAsia expand its long haul business and to what extent should AirAsia and AirAsiaX be integrated operationally?

  7. Problem • Advantages • Disadvantages • New markets and growth opportunities • Moves away from successful LCC strategy • Expansion of trunk routes • Difficulties with external factors • Increases market share • Loss of competitive advantage

  8. Company Analysis Structure of Operating Costs Direct Indirect

  9. Company Analysis Source:AirAsia Presentation, CLSA Forum, Hong Kong, September 2007. www5.airasia.com/.../CLSA%20Investor%20Forum%20KL%2007.pdf – Malaysia

  10. Company Analysis Source: Grant, Robert M.Contemporary Strategy Analysis. 7th ed. Wiley's Higher Education, 2010. P.632

  11. Company Analysis Source: Grant, Robert M.Contemporary Strategy Analysis. 7th ed. Wiley's Higher Education, 2010. P.633

  12. Company Analysis Capacity Utilization Product Design Economies of Scale and Learning Input Goods Production Technologies Residual Efficiency

  13. Company Analysis Capacity Utilization Quick turnaround time Single class seating system Ticket fares on time value

  14. Company Analysis Product Design Food and beverage sales Ticketless airline No refund policy

  15. Company Analysis Economies of Scale and Learning Single type of aircraft Employee specialization

  16. Company Analysis Input Costs Outsourcing Secondary airports Non-union labor

  17. Company Analysis Production Techniques Distribution methods Point to point network

  18. Company Analysis Residual Efficiency Team-oriented Employee bonuses Open management style

  19. Recommendation Remain one of the cost leaders Go long-haul strategically A blending of brands

  20. Questions?

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