Value Chain Diagram
Considering
the environment where Air Asia was competing, here are lists of activities, as
shown in table 1 and table 2, which were believed to be significant to Air Asia
in creating its value as a low cost air carrier. The analysis was based on
Porter’s value chain.
To
summarize, Air Asia has developed a considerable value chain in its approach to
the strategy. The value for these activities really added a significant amount
in its pursuit to provide low price air transportation services.
However,
there is no evidence whether Air Asia has already implemented further management
information system beyond its reservation system. It is recommended that Air Asia
should implement more analytical capabilities, such as Customer Relationship
Management or Business Intelligence, in its computerized system. By
implementing such technologies, Air Asia will be able to bring better decision
in proper time at proper place.(Sheehan,
2003)
Sources: "Might of Air Asia: Internal Analysis perspective" by Sandy Hofman Aruan
Written by Andina F.S
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