Blue Ocean Strategy Example in Asia – Example 1

Blue Ocean Strategy Example In Asia - Example 1

One of the significant modifications in which airline industry have changed will be the involvement of budget airline industry. The Great example in Malaysia will be Air Asia.

Blue Ocean Strategy Example In Asia - Example 1

Air Asia have managed to avoid the red ocean (compete with Malaysia Airline as well as regional airline such as Tiger Air, Jet Air etc) by looking into the factors in which industry take for granted as well as also factors in which important to customers. With the Four Actions Framework proposed by Blue Ocean Strategy authors, Air Asia have implemented many strategic move to ensure they are creating Malaysia Airline as well as regional airline company irrelevant.

Blue Ocean Strategy Example In Asia - Example 1

Example of the strategic move as follows:

Blue Ocean Strategy Example In Asia - Example 1

Eliminate:

Blue Ocean Strategy Example In Asia - Example 1

* Over the counter booking system

Blue Ocean Strategy Example In Asia - Example 1

* Free Food/Beverage on the plane

Blue Ocean Strategy Example In Asia - Example 1

* Seating Class booking system

Blue Ocean Strategy Example In Asia - Example 1

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 specific strategic move, Air Asia able to focus on factors in which genuinely bring value to the customers such as point to point travel system, easy booking system etc. This specific will help Air Asia to reduce cost as well as at the same time increase the value to the customers – Value Innovation.

Besides in which, Air Asia will be able to look at current non-customers as explained by the authors of Blue Ocean Strategy.

Current Airline Customers:

* Customers who are affordable to buy expensive ticket coming from Malaysia Airline as well as regional airline companies.

* Business people in Malaysia or ASEAN region

Non-Customers:

* Government Staff

* Those in which cannot afford to buy expensive ticket such as who are in rural areas, students or fresh graduates.

With the successful implementation of This specific Blue Ocean, Air Asia have venture into various other businesses such as Tune Hotel as well as Tune Money. The concept will be toward Blue Ocean marketplace.

Blue Ocean Strategy Example in Asia – Example 1

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