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In today ‘s universe economic system, information engineering ( IT ) has driven cardinal alterations in the nature and besides the application of engineerings in a concern. The usage of IT in its value concatenation provides the company a really strong strategically and tactical tools. If these tool are decently applied and used could convey great advantages in advancing and beef uping the competitory advantages.

In order to derive more market portion and prolong its competitory advantages to be really low cost bearer in these yearss high demanding environment, Air Asia tries to develop new ways of make the clients, providers loyal. Focus on provider and confederations and the client will drive positive values to Air Asia can accomplish. Customer relationship direction application will be one of the countries of strategic execution that company can concentrate to accomplish high values to both Shareholders and Customers.

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Customer Relationship Management ( CRM )

In order to long term, client relationship should be fostered for company to keep competitory advantage and profitableness. When planning and implementing CRM application, direction is recommended the undermentioned attacks:

Customer segmentation-mileage- based cleavage is unequal, instead should concentrate on value-based and needs-based attacks can be guide investing determination and thrust greater penetration into demands of high-value client.

CRM inaugural development-to different from the other rivals ‘ attack e.g. put ining booths for the fast cheque in. Air Asia should implement CRM plan in favor of puting in enterprises with a high return, which respond to the demands and desires of their ain clients.

Organizational design and management-Air Asia needs to develop the employees ‘ authorization them with a complete position of the client and clearly fluent the employees ‘ function in the CRM scheme.

Advanced and posh CRM information system should include the cardinal maps that are ;

Traveling Planning:

Site personalization for on line client to make travel program, bundled services information, flights presentment systems, and gate information shows etc.

Reservation and Ticketing:

ITA hunt engines, rolling agent check-in, booths, internet check-in, and phone cheque in systems etc.

Frequently Flyer Program:

Membership based or indicate based honoring scheme offering to the applicable client.

Campaign Management:

Email runs and publicity system are used for selling.

Customer Care:

Web based ego services such as e-ticket engagement and reserve, on-line luggage tracing. RFID luggage tickets, internet sofa, and in air cyberspace services.

Business intelligence:

Dynamic update and multidimensional studies that helps direction to make analytics in assorted countries, such as client profile.

To warrant the investing and execution range of the CRM plan, Air Asia is recommended to look into the ROI and fiscal impact to the stockholder value driven by each of the CRM enterprises.

By taking the stairss to implement a genuinely consumer-centric attack to relationship direction, Air Asia will be in better place to achieve, develop, and keep on to high value of the clients

Company wants to be the lowest short-haul air hose in every market it goes, that why they are utilizing some schemes such as Thin cost construction, different ways of publicity, maintaining safety, fulfilling invitees and developing human resource really strongly these yearss. Air Asia ever tries to maintain their operations every bit simple as they can.

SWOT Analysis:

To calculate out the internal factors such as Strengths and Weakness, and external Opportunities and Threats to concern aim, a SWOT analysis of Air Asia can be conducted ;

Strengths:

Low cost operation

Fewer direction degree, effectual, focused and aggressive direction

Simple proven concern theoretical account that systematically distribute that the lower menus

Penetrate and actuate to the possible markets

And multi skilled staff means efficient and incentive work force

Single type of Air coachs minimize the care cost and easy for pilot despatch

Streamline Operation: devising certain that the procedures are every bit simple as possible, that client can near and utilize it with no trouble

Thin Distribution System: offering a broad and advanced rang of distribution channels to do a engagement and take a measure toward a traveling easy

Point to indicate web: using the point to indicate web supports operation simple and low cost, that it connect the engagement offices with call Centres

Partnering with the universe ‘s most celebrated care supplier company and following with the air hose operation in the universe.

Implementing the parts fastest turnaround at 25 proceedingss merely, guaranting lower cost and higher productiveness

Failings:

Due to take down costs the services ownerships are limited, so person can believe that Air Asia can non function every bit good as they advertise

During irregular state of affairss the company could non manage them good with limited figure of personals

Government intervention and ordinance on airdrome trades and rider compensation

Non cardinal location for secondary airdromes

Its low cost scheme makes the trade name critical for market place and development is ever a challenge for Air Asia ‘s direction

One of the weak point is that the company trust to a great extent on outsourcing, it shows the Air Asia depends on other for some of their undertakings and seems non good for company ‘s reputation in the client ‘s head

New entryway to supply the monetary value sensitive services

Supplying invitees with the pick of modify services without compromising on quality and services.

Opportunities:

Long haul flights an experiment to acquire developing market portion, which is better for the company ‘s growing.

The Air Asia can distinguish from traditional Low Cost Carrier theoretical account by adding client services or runing as a full services air hose with low menu for the draw flights.

Ongoing industry consideration has opened up projection for new paths and airdromes trades, by doing such sort of trades the company spread out his concern

High rising prices rate and besides fuel monetary values will squeeze out unprofitable rivals

Menaces:

Keeping in position the current economic state of affairss the full services air hose cut their cost to vie.

Other companies like Virgin etc may believe towards Low Cost Carriers ( LCCs )

In the approaching clip the high rates of fuel lessening the output of the company is a large menace for them

Accident, terrorist onslaught and catastrophe affect client assurance.

For illustration on 28 July 2010 a plane clang in Pakistan and about one month subsequently on 24 of grand 2010 there is a another plane clang in China, these sort of accident creates a uncertainty in the head of clients. Due to their ( Air Asia ) low cost theoretical account the people may believe about that there is risk involve like services and safe journey. I think this is a major menace in these yearss that Air Asia can confront.

Aviation ordinance and authorities policy, Air Asia ‘s ongoing concern in long draw flights have ever menace for the altering policies of the those states and twenty-four hours to twenty-four hours alterations in the ordinances of the international airdrome governments

Increase in operation cost in bring forthing value added services, as Air Asia X utilizing value added services by long draw flights so it consequences in increase their operation and value added cost.

As Air Asia policy from the January 2002, company belief on-line place reserve and besides on-line flight agenda but a menace is ever there that the system upset can originate large job for Air Asia ‘s online system

Economic factor of Air Asia

Harmonizing to the net income and loss history of company it was good in 2009, weather it receive loss in 2008 due to fuel hedge and the crisis state of affairs in Bangkok. The company bear a heavy loss upon their short and long contracts when fuel monetary value shooting through to the roof before fall ining around the terminal of twelvemonth. On November 2008 the company abolish fuel surcharges. It is the first air line in the universe to get rid of fuel surcharge. As other air lines are downsize with diminishing in travel, because of planetary economic fortunes. In 2009 and in 2010 Air Asia expands its operations. The companies target to acquire around one Million clients in 2008, adding new programs and besides presenting new finishs like India etc. At the terminal of 2009 and get down of 2010 Air Asia marks get 5.1 million in 2009 that is 4.2 million up that was in 2008. The new programs were operate usefully towards new finishs like India, China etc.

Current Activities:

The Air Asia invited the client to come and take portion in picture taking competition in a sense of doing journey Happy with Them ( AIR ASIA ) , the victor of this competition will be awarded a ticket to Bangkok with adjustment and other offers such like that to acquire market incursion.

From 2009 the company starts scholarship for pupils related to pilot classs this is another attempt to acquire more market incursion in term of Air Asia ‘s gross revenues and do the client interested in their new paths and maintain the bing and every bit good as new clients.

These Air Asia utilizing Social security cheques for purchasing ticket on particular monetary values.

Red Megastore. They start ruddy megastore for online services for the intent of brand more easiness for the new and small educated clients to purchase Air Asia ‘s offered installations. As we know the mark client of Air Asia is less educated, Middle category and little concern work forces ‘s, so this program works really fruitful for the company.

Customer Satisfaction of Air Asia:

The client satisfaction on company depends on four variables that are Safety, Service Quality, Price and Promotion ;

Safety:

The safety factor is related to the Engine and other parts operate during flight

Take a good attention of the manus cavities and do certain that there is better topographic point for them without any perturbation

The company have much focal point on the insurance of riders while they travel

Service Quality:

Good manners of attending during flight

The flight attenders ‘ are really skilled, knowing and capturing

The Attendant ‘s must offer their services with maintaining in head of functioning

Monetary value:

Equality of ticket monetary value

Offer the low comparative monetary value

Promotion:

Air Asia was really care while lunching publicities they should be Interesting, After a sensible clip and besides good frequence of lunching publicities

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