AirAsia

1. vision statement recognising the objectives of the business

(who are our customers: 3 billion underserved passengers in Asia

What value: good connectivity and low fare

How to do: be the largest low-cost airline)

2. to implement policies according to its visions and missions

- e.g. vision to be the best company to work for subsidise the pilot training for baggage
handlers and customer service staf

- cancel paper tickets to streamline cost

3. vision and mission help identify corporate strategy, whether the company would be a price
leader or diferentiate its oferings.

Low-cost carrier is not a widely-adopted business model by the time.

People in ASEAN countries are less well-of (they need good value service)

Michael Hill

1. What is it?

2. a failure because

- diferences in product nature (shoes are much more seasonal extra cost on logistics,
marketing cannot enjoy economies of scale)

3. bought another chain in the US vs opening its own outlet in Canada

(former: make use of the existing brand reputation and power when there are dominant
players in the market; latter: bring a new brand image to the highly fragmented Canadian
market)

4. barriers to entry (Canada and US are free markets), consuming powers (all are well-
developed economies)

5. no dominant player, market comprised of many small chains

Utilise its global network (e.g. distribution) to gain competitive advantage

A certain degree of diferentiation needed (i.e. niche market)