Airasia E-commerce Strategies Analysis

The folllowing sample essay on Airasia Ecommerce discusses it in detail, offering basic facts and pros and cons associated with it. To read the essay’s introduction, body and conclusion, scroll down.

AIR ASIA E-COMMERCE STRATEGIES

Low cost per average seat kilometer AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2. 5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet.

AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.

Low distribution cost AirAsia focus on Internet bookings and ticketless travel allowed it to lower the distribution cost. Attractive ticket price With the average fare being 40-60% lower than its full-service competitor, AirAsia has been able to achieve strong market stimulation in the domestic Malaysia air market (Thomas 2003).

For instance, the fare for the trip from Kuala Lumpur to Penang on AirAsia starts from 39 ringgit. Comparing to trip by bus charge 40 ringgit and 80 ringgit by car.

The effect of attractive low fare is more travelers switching from bus to air, similar case as Ryanair in Europe. Good Management Team AirAsia value proposition is more sophisticated than Ryanair placing equal emphasis on brand reputation and customer service/people management, by a senior advisor to AirAsia’s top management team. AirAsia pursue a Ryanair operational strategy, Southwest people strategy and an EsyJet branding stategy.

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AirAsia is the best organizations among others s because of their :- Xpress Boarding AirAsia practices a free seating policy.

Xpress Boarding Airasia

This policy has enabled them to consistently achieve a turnaround time of 25 minutes for all of their flights. They now offer, as an option, the choice of seats through Xpress Boarding. Xpress boarding allows guests to board on aircraft first, and choose a seat of their liking-be it a window seat, asle seat, front of aircraft or next to the lavatory. This service has proven to be exceptionally popular for time hungry business people, corporate employees on business trips, and families travelling together. Web Check-in For a seamless, quick and convenient check-in, We

B Check-in was introduced to enable those travelling without luggage. Guess may simply check-in via thewebpage from the comfort of their homes of office, print out their boarding pass and proceed to the airport at their leisure. Self Check-in Kiosk Self Check-in also available. Their fiery red kiosks are located at the LCC Terminal, KLIA to enable a self check-in with a touch of the screen. E-Gift Voucher The E-Gift Voucher is an innovative gift for all occasions as well as being a much-appreciated to corporate gift for its high-perceived value.

Since its launch, the E-Gift Voucher has proven itself to be a popular choice for those who want to present imaginative gifts.

MALAYSIA AIRLINES E-COMMERCE STRATEGIES

E-Freight Program The e-Freight Partnership Program of MASkargo is a strategic e-commerce framework that aims to develop a paperless environment that will enable collaboration among various key players of the logistic industry to adopt electronic channels as the way of transacting business processes with each other. MASkargo Pioneers the Use of the FPX System

MASkargo was recently recognized as one of the early adopters for Malaysia’s first real time online inter-bank Internet payment gateway, Financial Process Exchange (FPX). FPX, a national project, facilitates online payments for e-commerce transactions in particular B2B and B2C (business to business and business to consumer) transactions on a secure and multi-bank platform. E-Commerce E-Commerce encompasses all business operations and transactions based on communication via the electronic media. The major activity includes e-Bookings e-Tracking e-Schedules e-Air Waybill Stock Distribution -Air Waybill Submission e-Invoicing & Payment Malaysia Airlines’ needs Malaysia Airlines, having a clear idea about what it wanted to achieve with the P SS programmed, divided the workload into five streams: Reservations -Anew, more efficient and functionally rich system, to meet today’s industry standard sand requirements. E-Commerce-Allowing Malaysia Airlines to reduce distribution costs by providing a convenient, easy to use Internet Booking Engine. E-Ticketing and DCS-Moving from traditional paper toe-tickets by May 2008, in line with IA TA’s requirements.

This included an upgraded Departure Control System so that Malaysia Airlines could offer new self-service options to passengers, including kiosk and web check-in. Revenue Integrity-To authenticate every booking ensuring it produces an actual passenger upon departure, avoiding the revenue leakage which occurred in the past. Fares Management-To enable Malaysia Airlines to distribute fares more efficiently around the world and to improve pr icing decisions. A critical success factor was the ability to integrate all five work streams with other existing systems in place throughout Malaysia Airlines.

SITA’s solution in a first for the region, and with a contract worth more than US$80million over a ten-year period, SITA has been undertaking a comprehensive overhaul of Malaysia Airlines’ existing passenger applications and services, covering the five work streams -reservations, e-commerce, ticketing and departure control, revenue integrity and fares management. To date, SITA has met the needs of Malaysia Airlines by implementing several Horizon solution components including: Implementing SITA Ticketing and DCS around existing passenger applications, saving Malaysia Airlines millions of dollars.

Re-engineering Malaysia Airlines’ fares strategy, including fares workflow, competitive monitoring, and effective distribution, which has been critical to the outstanding success achieved with e-commerce. Implementing revenue integrity and revenue protection, enabling Malaysia Airlines to prevent the waste of over 120,000 segments in a single quarter at the beginning of 2008-equating to improved inventory management with significant cost savings and revenue upside.

FIREFLY E-COMMERCE STRATEGIES

In buying up Firefly Network, Microsoft did more than feather its nest with a set of bleeding-edge consumer privacy technologies. It also struck a critical blow to arch rival Netscape by effectively sinking that company’s online e-commerce strategy. Firefly has been developing a privacy plug-in that would have injected Communicator 5 with the necessary technology to support the Platform for Privacy Preferences (P3P) specification. While DesAutels said that Netscape had been relying on the Firefly plug-in, other sources, both at Netscape and within the P3P working group.

The Firefly acquisition is cool for the industry as long as Microsoft doesn’t step in the way and make it hard for them to work with Firefly – this is an area where people will see some cooperation between Microsoft and Netscape. P3P and a related technology, Open Profiling Specification, provide a means for Web sites and consumers to seamlessly exchange preferences about what personal information — such as age and ZIP code — is exchanged over the Internet.

The P3P specification is expected to be declared a standard by the World Wide Web Consortium by next month, and is poised to become an essential aspect of all Web transactions, including shopping. But the latest Microsoft deal has sent Netscape back to square one. That’s because P3P is very difficult to implement in a browser, and Firefly engineers were clearly leading the industry in that regard. They have creating a technology that is extremely difficult to implement. [The Netscape-Firefly plug-in] would have put Netscape back on par with the industry for privacy and e-commerce, and data exchange.

Firefly has a collaborative filtering engine that can suggest products based on a user’s likes and dislikes. But Microsoft already owns a similar filtering engine, in the form of the “Personalization Services” features built into the company’s Sidewalk city guides. What attracted Microsoft to Firefly was the technology Firefly had been developing for both Netscape and Explorer — a dynamic content engine that would make the proposed P3P standard interoperable with Web sites.

The acquisition was made by Microsoft’s Web Essentials group, which includes Microsoft Network, Sidewalk, Expedia, Hotmail, and the forthcoming Start “portal” service — which mimics the Web gateway strategy adopted by many search-engine companies and Redmond’s plans for P3P extend well beyond its Explorer browser. In March, Netscape told Wired News that the P3P/OPS technology was critical to its e-commerce plans, especially given growing pressure from the Federal Trade Commission for the Web-commerce industry to regulate itself with technological — rather than legislative — solutions to protect consumers.

While DesAutels suggested that few other vendors were developing P3P solutions, an active member of the P3P working group said that Netscape would likely not be adversely affected by the Firefly acquisition. The Firefly acquisition gives Microsoft a greater stake in Information and Content Exchange (ICE), a proposed protocol for the automatic, controlled exchange and management of online assets between business partners. ICE is an embryonic technology being developed by Adobe, Firefly, JavaSoft, Microsoft, National Semiconductor, and Vignette, and a number of content publishers.

A key technology under development at Firefly and destined for a W3C standards track, ICE will help establish standards for Web sites to communicate with each other, paving the way for online superstores and new reseller channels. Now, with a heavy stake in ICE, Microsoft has a leg up over Netscape in future e-commerce development. Netscape’s whole e-commerce strategy, a large portion was now they have a client that speaks ICE, uses certificates for identity, includes an OPS/P3P client for exchanging info.