Achieving Competitive Advantage Through IT Support. A Story Of AirAsia

It is very essential for companies that operating in this globalization era to be competitive in order to stay ahead among the competitors. According to Heizer(2009) on his book about operation management, in order to achieve competitive advantage, a company must compete on differentiation, cost and also response. All these combination can be achieved through the used of IT support.

IT support can benefit and provide unique opportunities for entreprenuers of all ages to start up online companies and apply innovative business model. We look at AirAsia as an example for this article. AirAsia start it business at a time when travel industry was struggling from the impact of the 11 September terrorist attack. AirAsia offer differentiation through its service by providing budget airline that makes flying is affordable to everyone.

As a new business in the market, AirAsia facing challenges from the existing player in travel industry. One of the challenges is AirAsia not able to sell their tickets through travel agencies due to the latter's agreement with other national carriers. However, AirAsia accept the situation positively and turn the challenge to become opportunity. AirAsia used an alternative marketing channel that is via Internet. Their website known as www.airasia.com. This strategy seems to be successful with over three million hits a month. this company's website provide online booking services where passengers can books their seats check flight schedules and obtain latest updates on AiAsia promotions. Online booking also leads to ticketless trvel, where a customer simply presents his or her identity card or pasport for checking in to board flights. In this way, it makes travelling more convenient for passengers and help AirAsia to keep costs low and in turn enables AirAsia to keep its airfares low. In addition, understanding the competition on response, in August 2003, AirAsia became the first airline in the world that introduce SMS booking. this SMS booking systems also operating like online booking systems where passengers can book seat, check scheduling and promotions. With all of these IT support example, it enables AirAsi to place its name as the best low cost carriers in the world.

Rosliana Binti Ahmad Razilan