Asian Express for Strategy Simulation-myassignmenthelp.com

Question: Discuss about theAsian Express for Strategy Simulation. Answer: The increase of liberalization in the environment of the regulatory environment where the global and regional airlines face- off created major challenges and also opportunities for the carriers that can be capable to deliver services on the basis of higher quality at the lowest price. In this regard it is important to see how Tajikistan based Asian Express is tackling with the capabilities. The fare per mile charged is 30 cents. Competencies and Capabilities in terms of its Competitors The important competitors of Asian Express are the Pearl Airline, Estrella Airways and Easy Fly airlines. Among them the Pearl Airline follows strategy based on low cost fares and giving a tough competition to the Asian Express. Airlines Business Model Aircrafts Acquired Strategy Easy Fly Holiday Carriers 1 Beechcraft 2 British Aero Differentiation Fly Air Budget Airline 3 Beechcraft Cost- Focus United Asia Budget Airline 1 Beechcraft 1 British Aero 1 Embraer Brasilia Low cost Leadership Estrella Airways Budget Airline 2 Beechcraft 1 Embraer Brasilia Differentiation Pearl Airline Legacy Airline 4 Beechcraft 1 British Aero Low-cost Leadership Despite Air Asia being a carrier of low cost, the company does not want to compromise with the quality of the service. Its promotion budget is $3,000 and advertising budget is $4,000 The standard quality needs to be maintained accordingly. It looks up for offering low fares by the concept of using e- ticketing. Second, creating a diverse team within the company through training and promotion and also maintaining a strong link of communication among the stakeholders (asian-express 2017; Drucker 2017). What competitors find it hard to follow a good synergy is being maintained between the employees and AA management. It provides a fantastic support of management and also encourages employees to work hard on creativity (Basu, Bannerjee and Sweeny 2013). Under the capabilities, it follows a difficult aggressive marketing practice and massive advertising along with the promotion of packages. These are the capabilities which would give tough time to the competitors (asian-express 2017). The Social performance Budget is $1, 500 and the Social Responsibility Area are used for the causes of general charitable. Strengths and Weaknesses of Asian Express Strengths: The airlines of Asian Express consists of a strong team of management which incorporates the experts from industry and government officials from the ex-top category and also including the board of the directors having many outstanding portfolios which would give a systematic grouping of a team in the Asian Express (asian-express 2017; Basu, Bannerjee and Sweeny 2013)). Asian Express carries out the operations based on low cost who incorporates online booking, ticketless, check- in online, a quick turnaround of 25 minutes, no frills and low fares. The Gross Revenue is $1, 490,761. Using a fleet of single aircraft which reduces the training costs and maintenance. It has also focused on entering a potential market having groups of lower and middle income group, to attract the customer based on their income growth and give them a suitable ride with low- cost. However it is also targeting in its 8th quarter the luxury passengers as well. (asian-express 2017; Grant 2016). The resources that Asian express airlines have are the well trained staffs and having multiple skills which would further encourages the efficiency of the Air Asia. Asian Express looks forward to make its brand recognition stronger and also effective marketing approaches with greater awareness in the market and among the targeted group Basu, Bannerjee and Sweeny 2013). Asian Express has its management team having strong links with the industry leaders of the airlines and also with the government. Weakness The resource of service is limited due to low costs which might affect the competitive advantages in the market. Government make its huge interferences and also regulate the deals of the airport There are no any central locations of the secondary airports It relies heavily on the outsourcing which forms one of the major set back for the airlines. Another most import weakness is that the company gets a lot of complaints from its own customers about their services. However they have a refund the customers back for what they cannot fulfill their expectations accordingly. Asian Express does not have its maintenance, repair and overhaul facility (MRO), which forms a major setback for Asian Express. (asian-express 2017; Grant 2016). The one major thing that the company always managed to keep its consistency and it was no model of frills and always looking forward to offer its value in the low fares. Asian Express would make its air fleet servicing for more than 400 destinations having hubs in the countries such as Thailand, Malaysia and Indonesia today. The air- craft seats of Asian Express is 3/57, revenue yielded $1,490,761 and the net profit yielded $22,234. The income statement of the airline is $293,299 at 19.7% (asian-express 2017). VRIN framework Valuable: Asian Express utilize its opportunities and can exploit the growing markets like that of China and India based on the philosophy of low cost. Rare: The rare resources carry competitive advantages for Asian Express such is the homogenous market. The construction of the innovative routes and work culture differs from that of competitors. Each new route costs $10,000 and they are charged according to the services of the passenger. (Hinterhuber 2013). Imitate: One of the imitable characteristics of Asian Express is the dependency of path where the resources characteristics are developed or through the process of accumulation of the unique series of time. The reliability is 92%. (asian-express 2017). Non- Substitute: It is the worlds low cost airline and it cannot be substituted along with its strong brand name. Resource Based View of Asian Express Tangible assets: The company depends upon its machinery and equipments however it carries little advantages to the firm in terms of its competitors. Intangible assets: The Companys strong brand reputation and intellectual property are the part of the intangible assets (Lin and Wu 2013) Assumptions of RBV Heterogeneous: The resources that the Asian Express possesses different kinds of resources and it should not be imitated by the other companies in terms of low cost and a good management is maintained between AA management and employees (asian-express 2017; Lin and Wu 2013). Immobile: The Asian Express resources are not mobile such as knowledge, intellectual based property and brand equity (asian-express 2017). Conclusion: Therefore it could be state that Asian Express is an important air line operating in the low cost . However it is keeping its eyes to incorporate the people of higher income in coming years which might increase its profit. It is important to point out the strategies properly and implement accordingly by giving the best services to the customers. References asian-express 2017. Asian Express Airline Airline Profile | CAPA. [online] Centreforaviation.com. Available at: https://centreforaviation.com/data/profiles/airlines/asian-express-airline-kv [Accessed 29 Aug. 2017]. Basu, R.R., Banerjee, P.M. and Sweeny, E.G., 2013. Frugal innovation: core competencies to address global sustainability.Journal of Management for Global Sustainability,1(2), pp.63-82. Drucker, P.F., 2017.The Theory of the Business (Harvard Business Review Classics). Harvard Business Press. Grant, R.M., 2016.Contemporary Strategy Analysis Text Only. John Wiley Sons. Hinterhuber, A., 2013. Can competitive advantage be predicted? Towards a predictive definition of competitive advantage in the resource-based view of the firm.Management Decision,51(4), pp.795-812. Lin, Y. and Wu, L.Y., 2014. Exploring the role of dynamic capabilities in firm performance under the resource-based view framework.Journal of business research,67(3), pp.407-413.