Case Study AirAsia

In 2001, Time Warner Execu(ve Tony Fernandes purchased the ailing, debt-riddled, government-owned AirAsia. In a remarkable feat (using blue ocean strategy principles) Fernandes engineered a remarkable turnaround, turning a prot in 2002 and swiJly opening mul(ple new routes whilst undercuKng Malaysia Airlines and demolishing its monopoly. AirAsia pursued the value innova(on model to establish its low cost airline, which allowed it to reconstruct market boundaries, reach beyond exis(ng demand and render the bloody red oceans of industry compe((on irrelevant. They established a compelling service oering that created a leap in value in passenger and company value by breaking the value/low cost trade o and pursuing value innova(on. AirAsia has con(nued to enjoy steady growth and won the Skytrax World's best low-cost airline award in 2009, 2010 and 2011. Execu(on 0

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Case Study AirAsia

Air Asias leap of value is demonstrated when looking from the perspec(ve of the four ac(ons framework and the strategy canvas. Their strategic move included the following: Eliminate: The strategy canvas (below) is a key tool that helps plan and communicate Over the counter booking system blue ocean strategies Complimentary food/beverage on the plane Sea(ng class booking system Reduce : luxury facili(es provided by Airport Lounge Inight aZendance service Seat quality Raise: Focus on several key des(na(on Increase frequency of ight Create : Online booking system Point to point travel system
(Ar%cle Source: h.p://EzineAr%cles.com/1031603)

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