AirAsia Prateek Gupta

8/2/2019 AirAsia Prateek Gupta

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•Blue Ocean Strategy is a series of managerialdecisions that drive customer value up while drivingcosts down with a series of moves that create valueinnovation.

•

The well-defined process looks at existing marketsin a different way and identifies new competitivefactors that add value and eliminate head-to-headcompetition.



Focus on non customers

Create uncontested market space

Make the competition irrelevant

Create and capture new demand

Break the value- cost trade-off



A Blue Ocean Strategy successfully implementedprovides strong barriers of imitation, givingcompanies a 10- to 15-year lead over thecompetition. While companies have been

creating blue ocean strategies for decades,recently successful blue ocean companiesinclude Callaway Golf, Net Jets, Cirque de Soleil,and Southwest Airlines.



Air Asia have managed to avoid the red ocean(compete with Malaysia Airline and regionalairline such as Tiger Air, Jet Air etc) by lookinginto the factors that industry take for granted

and also factors that important to customers.

Air Asia have implemented many strategic moveto ensure they are making Malaysia Airline and

regional airline company irrelevant.



Examples of strategic moves a follows:

Eliminate: Over the counter booking system Free Food/Beverage on the plane Seating Class booking system

Reduce: "luxury" facilities provided by Airport Lounge No of attendance service on the plane Seat Quality



Raise: Focus on several key destination Increase frequency of flight

Create : Online Booking system Point to point travel system

With this strategic move, Air Asia able to focus on factors that really bring value tothe customers such as point to point travel system, easy booking system etc. Thiswill help Air Asia to reduce cost and at the same time increase the value to thecustomers - Value Innovation

Prateek GuptaRoll No. 63E-Biz Batch- II

AirAsia Prateek Gupta

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