Eurasia wanted to be a leader in the lowest cost to run their business. Therefore, building and sustaining it’s competitive advantage by providing services at a price that is simply lower than competitors price. Operation effectiveness and outstanding efficiency are the two main characteristics of low cost business including in Eurasia. (stratification’s, 2009) Moreover, Eurasia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business.
Efficiency creates savings that are then passed on to guests so that affordable air travel can become a reality. Through Raisin’s philosophy of ‘Now Everyone Can Fly, Air Asia has sparked a revolution in air travel with more and more people around the region choosing Eurasia as their preferred choice of transport. As Air Asia continuously strives to promote air travel, Eurasia also seek to create excitement amongst their guests with their range of innovative and personalized service. (stratification’s, 2009) http://tempestuousness’s . Bloodspot. Com/2012/04/southwest-competitive-advantage. HTML http://disambiguation. Wordiness. Com/2009/08/31 [the-air Asia-company-strategic -management-âE-howCirasiEurasiae-a-leader-in-the-lowest-cost carrier-in-the-airplane-industryâ?/ htE://dADccellat02dbuccellat02011. Wordiness1 1Com/airline-ryanair-strarainyin-differentiating/ 6. AirAsia has Eurasiaantage of being first in the market, which gives it an upper hand over competitions in terms of customer loyalty and brand image. Furthermore, AirAsia has Eurasiantage over potential competitors due to its established knowledge of the Asian marketplace.
AirAsia alsoEurasiato have the resources, credibility and planning capacity necessary for expansion into international markets. Finally, AirAsia doesEurasiace the obstacles of bureaucracy, tagnant orgataggingnal culture, and lack of a cost-conscious, efficiency- oriented mentality, prevalent in the incumbent, government-controlled, expensive carriers. Datuk Tony FDatesdez asFernandoirAsia BerhEurasia Berthailosophy is very clear: “before a business can grow, it needs to have its costs under control.
It must be cost-efficient and profitable, and it must create valUe. Costsvalue do not add value must be contained, reduced and even eliminated. I have been asked by various people, “How much lower can your cost reduce? You’re already the lowest in the world! ” My direct answer is if we do not strive to be more efficient nd choose toNDe complacent – our days are numbered. This is a continuous task we have to face head on year on year; it is the critical ingredient to operate a successful business. (catatanraufmstratification’sd on the Datuk Tony FDatesdez saFernandoia can Eurasiaing in the airline business if they can control their cost. The cost that they have to running there must be efficient and reliable. Everything that can make inefficiencies must be reduced and possibly to eliminate. What Datuk Tony FDatesdez saFernandoy strong opinion about their company running their business. AirAsia can Eurasiably compsibylith another airplane industries if they can make efficiencies to reduce cost and make the low possible fare than another airplane industries. catatanraufmstratification’sce: CAPA – CentrCAPr Aviation analysis of airline reports, OAG * Year eGAGng 31-Dec-2012 excDeck: ANA and Philippine Airlines to 31-Mar-2012; SIA, SkymarkSISigSummaryand StarGAL.er toStatelier013 The most effective approach for AirAsia is lEurasiao be focusing on the above advantages to the maximum, rather than attempting to come up with new strategies that may pose a risk for Airasia agaiEurasia competitors . AirAsia shouEurasias on maintaining their position in the market like what Datuk Tony FDatesdez saFernando
AirAsia shouEurasiaistently plan on strategies to maintain their competitive advantages. Besides that, in order to neutralize the threats of government interference to save the survival of its primary carriers, AirAsia shouEurasiaiate and maintain positive relations to rally the support of the government. This can be accomplished through finding mutually motivating goals so that AirAsia can Eurasiaeived as a contributor to the national economy, rather than a destroyer of the established carriers.