Information Resources on Value Chain Analysis of Air Asia

Information resources on value chain analysis of Air Asia

In this contemporary digital era, information resource has altered the value chain activities significantly. The value chain model addresses the activities of an organization to generate its competitive advantage. This model emphasizes on activities that create, support and deliver firm`s product and services. In the airline industry, there is greater dependency on information resources for sales and promotion.  The way businesses and organisations compete depend on the information resources at their disposition. Information resources are essential to AirAsia not only for its customer interface but also on the structure of the industry itself. In AirAsia, information resources have become central to the strategic development of the airline and its sustainability. The value chain model has been exploiting by AirAsia and it has enhanced its value chain activities by providing innovative exchange mechanism and transaction structured with its customers.

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Value chain model enhances organizational competitive advantage regardless of the firm possessing the appropriate information resources. The main activities of an organization (primary activities) are being complimented by its support activities. In the use of value chain framework, it is pertinent for most companies to manage their internal activities by acquiring information outside the organization as well.

According to (Liau and Tan, (2014) studied that information resources enlighten and refine AirAsia insights into aligning both its primary activities and support activities on customer needs, preferences, experiences and opinion on its products and services. AirAsia information resource strategy has been lowering the cost to perform its activities and adding value to its product and service which will sustain its business in a long-run and keep its customers.

Primary Activities

Inbound Logistics

Information resources have structured the inbound logistics of the AirAsia value chain model. AirAsia is running a new and more fuel-efficient Airbus A320-200 plane which has replaced its fleet of Boeing 737-300s. The restructure of this inbound logistics connotes the essence of information resources. The Airbus planes can save cost on training of engineering, thereby focusing on creating and enhancing its promotion and innovation. There is an offering of in-flight services which enhances the company added values. Information system helps the company to communicate with the customers on the food of their choices in the flight and thereby promoting most of the local foods.

Operations

AirAsia is a low cost carrier and it is self-automation. The values added to its operation activities are being contributed because of the company adopting and utilizing its information resources so well. Information resources have altered the operations by strategically adopting a twenty-five minutes turnaround for each flight within the short route. Less time on the ground and more time in the air means AirAsia get the most of every flight through high aircraft utilization, lower costs and greater airline and staff production. All these tremendous achievement through information resources have stick and enhance the company to defend and sustain its competitive advantage over its competitors. The short-haul regional service has drastically reduced the cost of the company operations.