Question : How would you describe Fernandes’ entrepreneurial strategy? 1. General. Tony Fernandes was a risk taker; he bought his airline without prior knowledge about aviation as well as firsthand experience with the airline industry. He said in one of the interviews, “Go with your gut, give it your best bet and you may fail, but don’t give up” (INSEAD Knowledge, 2007). This statement shows the type of the person that he is. He is an independently-minded person who knows when to trust his gut. With his marketing and entrepreneurial ability, he was able to make his dream come true.
Dato’ Sri Anthony Francis Fernandes – founder CEO of AirAsia
2. Entrepreneurial Strategies of Tony Fernandes.
a. A good grasp of finance.Fernandes is an accountant by training and good at numbers. Educated at the London School of Economics, from 1987 to 1989 he worked as the financial controller of British tycoon Richard Branson’s Virgin Records in London. He got a good understanding of accounting and finance (Flores, 2013). b. Taking Care of Key Assets. One of Fernandes’ strengths is his caring for and nurturing good employees. He sees people as the “key asset” of any business and hopes to help develop their full potential, passions and dreams. His business offices have no walls and he seeks ideas from his staff (Speaker Ideas, n.d.). c. Steady Branding Strategy.Tony Fernandes said it took him seven years to consciously and consistently build up the AirAsia brand name and logo as distinct and internationally known (Times Internet Limited., 2014) . d. Efficient Marketing Strategy. Tony Fernandes invests in and excels in marketing. He said: “If you have a great product but no one knows about it, its history” (Flores, 2013).
e. Use of Digital Technology. Fernandes believes in using digital technology for his businesses. Much of his business comes from AirAsia.com. It is part of his clever marketing strategy to make passengers discover and enjoy his website (Flores, 2013). f. Bold Vision. Tony Fernandes has a bold, global and long-range vision for his various companies. As a child, he dreamt of three things: running an airline, owning an English football club and owning a Formula One racing team (Harvey, 2012). 3. Conclusion.From the above review of the entrepreneurial strategy of Tony Fanandes, it seems that Fernandes was very much a risk taking entrepreneur. However, the success story of Air Asia clearly reflects his skill in managing the company that revived Air Asia from its ashes. On the whole, Tony Farnandes should be an example in the history of entrepreneurship. •How should AirAsia respond to the challenges posed by (a) New low-fare carriers entering the Asian marketplace and (b) Low-fare strategies pursued by incumbent carriers? How would you characterize the competitive dynamics in this market?
1.For both cases, it would require Air Asia to give the best possible service at the best possible price. They should innovate and come up with new ground and in-flight services to differentiate themselves from other low-cost airlines. Air Asia should review their customer feedback and customer service parameters to effectively match the customers’ views and opinions to the services they offer. They can also introduce new concepts and enhancements to their brand of service. They must work to earn a reputation (for efficiency, punctuality, and safety) so that they could compete in terms of price and quality with the low-fare strategies pursued by incumbent carriers (Flores, 2013). 2.The best way for Air Asia to gain an edge over other budget carriers is focus on the quality of service. This includes ground services, in-flight services and on-time performance plus of course, aircraft safety which some budget carriers simply seem to flout.
In addition to upping its safety and service standards, Air Asia should also chop out routes that are not as popular while increasing frequencies between airports that witness a heavy demand (Papars, n.d.). •How do you think the Asian passenger air transport marketplace will shake out? What lessons can be drawn from the North American and European experience? 1. The Asian passenger air transport marketplace will shake out when Asian governments impose strict regulations in the airline industries that prevent competition from flourishing. There will also be shake out if the Asian economy goes through recession again; the people would not have the relatively high purchasing power they have now. 2. The lesson that can be drawn from the North American and European experience is that business models that work in North America and Europe could also be applicable in the Asian setting. The world is becoming more globalized; the mindsets of people are also changing making it easier for them to adapt business models that are applied in other parts of the world.
What is your assessment of Air Asia moving beyond its historic strength in Southeast Asia to Australia, China, India, and Europe?
1. It appears Air Asia will follow a strategy of low cost strategy to convert the large train travelling populace to flying. In India and China. Particularly,in the second fiscal quarter from July to September when the Summer school vacations starts, and their resultant family trips, conclude by June in the south where Air Asia India intends to commence operations (Agarwal, 2014) . 2. For Austrailia and Europe, it’s not the fanciest airline around and the service isn’t the most dedicated, but value for your money is probably the best reason to book a flight with the Malaysian low cost carrier. Services to and from Australia and Europe are the ones with the lowest and best prices on the market. “Now everyone can fly extra long” – The AirAsia X company slogan is quite a benchmark (Cahill, 2014).
Agarwal, D. (2014, May 8). Opinion: AirAsia India Granted Permission, But Should Wait to Commence Flights. Retrieved from http://www.bangaloreaviation.com/: http://www.bangaloreaviation.com/2014/05/opinion-airasia-india-granted-permission-wait-commence-flights.html Cahill, J. (2014, March 25). Review: AirAsia X Premium and Economy Class. Retrieved from http://www.gotravelyourway.com: http://www.gotravelyourway.com/2014/03/25/review-airasia-x-premium-and-economy-class/#.U_ZncPldUmM Flores, W. L. (2013, December 16). 12 Success Strategies of AirAsia Boss Tony Fernandes. Retrieved from http://www.philstar.com: http://www.philstar.com/business-life/2013/12/16/1268045/12-success-strategies-airasia-boss-tony-fernandes Harvey, C. F. (2012, November 22). Tony Fernandes — “Dream The Impossible”. Retrieved from http://www.chrisfharvey.com: http://www.chrisfharvey.com/2012/11/tony-fernandes-dream-the-impossible INSEAD Knowledge. (2007, August 26). CEO view: Tony Fernandes of AirAsia. Retrieved from http://knowledge.insead.edu/: http://knowledge.insead.edu/leadership-management/strategy/ceo-view-tony-fern