Airasia Corporate Strategies
Understanding the operations of the firm Flat Hierarchy Opportunity to grow and voice their opinion Effective communicator – Singleminded and simple approach to operations.
By adopting the Blue Ocean Strategy, he significantly reengineered the way in which the airline industry in Malaysia had been previously run and he created a leap in value for customers He introduced: • he went beyond existing market constraints to re-create market boundaries • a low price ticket and no-frills mode of operations in order to create value for customers • Created multiple new routes and frequency of flights etc.
Four Actions Framework AirAsia’s Strategy Canvas Outcome of the decision Developing Airline of the Year 2003 by Airfinance Journal 2012 ATW Value Airline of the Year Strategic decision 2 – AirAsia X (Long Haul) ? Global strategy-International expansion ? Formed in 2007 ? An associate company that offers long-haul services from Kuala Lumpur to Australia, China, France, India, Iran, Japan, New Zealand, South Korea, Taiwan, and the United Kingdom.
Strategic decision 2 – AirAsia X (Long Haul) Quality of the decision ? Overall, the long-haul model for AirAsia X is a great success. ? But the flight routes to London and Paris have to be cancelled due to high fuel prices and low demand. ? “It (the decision) was emotional,” recalled by Fernandes in an interview revealing his emotional attachment to London. This sentimental decision eventually contributed to the failure of long-haul flights.