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What Is Airasia Competitive Advantage

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Businessdictionary.com defines competitive advantage as a superiority gained by an organisation when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities. There are many ways a company can have a competitive advantage over its competitors. These are price, quality, flexibility, time, service, employees, product or service differentiation, brand and technology. It is of utmost importance that an organisation know its competencies as this will be the foundation of its success. An organisation should always follow its core competencies so that it would not stray away from its objective, mission and vision. One very successful company which has managed to create and sustain competitive advantage in the industry it operates is Malaysia’s very own AirAsia Berhad. AirAsia was established in 1993 and commenced operation in 1996. In 2001, the airlines was purchased by Tan Sri Dr Tony Fernandes of Tune Air Sdn Bhd from the ownership of HICOM Holdings Bhd for the token sum of only RM1 and as part of the purchase took up RM40 million of the airlines debt. With only 2 Boeing 737-300 aircraft together with RM40 million in debt, Tony Fernandes turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, thus threatening former monopoly Malaysian Airlines with

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