07 March 2010

Blue Ocean Strategy Example in Asia - Example 1

One of the major changes that the airline industry have changed is the inclusion of aviation budget. Good example in Malaysia is Air Asia.

Air Asia has managed to avoid the red sea (in competition with Malaysia Airlines and regional airline like Tiger Air, Jet Air, etc.), look at the factors that are granted by the industry, and that the important factors to customers. With the four activities of the framework proposed by the Blue Ocean StrategyAuthors, Air Asia has many strategic step to ensure that they are doing, Malaysia Airlines and regional airline irrelevant implemented.

Example of a strategic step as follows:

Delete:

* Over the counter booking

* Free Food / Beverage Air

* Class seat reservation

: Reduce

* "Luxury" facilities provided by the airport lounge

* N. Ground Services

* Seat Quality

Raise:

* Concentrate on the main differentTarget

* Increase the frequency of flights

Make:

* Online Booking System

* Point to point travel system

With this strategic move, Air Asia is able to focus on the factors that actually bring value to customers, such as point-to-point travel system, easy reservation system, etc. This will help Air Asia, reduce costs and at the same time, increase the value for customers - Value Innovation.

In addition, Air Asia is not in a position to seek current customers, as already The authors of Blue Ocean Strategy.

Current airline customers:

* Customers who are cheap to buy the expensive tickets from Malaysia Airlines and regional airlines.

* Entrepreneurs in Malaysia and the ASEAN Region

Non-customers:

* Government Personnel

* Those who can not afford to buy expensive tickets, as found in rural areas, students or graduates.

With the success of the Blue> Ocean who dare to Air Asia, in other businesses such as hotels and Tune Tune Money. The concept is in the direction of Blue Ocean market.

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