Paraphrase needed (similar word count) Recommendations As a CEO (Chief Executive
ID: 423502 • Letter: P
Question
Paraphrase needed (similar word count)
Recommendations
As a CEO (Chief Executive Officer) of AirAsia, in order for AirAsia to improve the performance and management of AirAsia successfully in future, few competitive advantages of IT are needed to focus. However, the most important information system should focus on is Customer Relationship Management (CRM).
First of all, AirAsia shouldn't approach to CRM initiative development that is learning from other competitors, for example fast check-in system by installing kiosks. In order to differentiate from other competitors in travel industry, AirAsia should carry out CRM program in favor of investing in initiatives with a high return, which will respond to customers' needs and desires. Therefore, in order to maintain competitive advantages and profitability, AirAsia should foster the relationships between customers (according to Hillman and Keim).
In the business world, company will never compete against company, but will compete network against network. For example, MAS (Malaysian Airline System) does not compete against AirAsia. Their respective networks compete. AirAsia and MAS, both are low fare airlines. In order to attract customers to travel, AirAsia always advertise their promotions through AirAsia's webpage and newspapers with the most affordable price. With no doubts, poor network services will not have a good relationship in long run. Therefore, network has to work together with CRM to deliver great value of information to customers and solve customer's problems, is a source of great competitive advantage.
Lastly, a simple notification given by AirAsia to customers can be an opportunity for a valued dialogue. The implementation of CRM is to create a valuable customer relationship and with the two basic functions that are marketing and the customer experience. Marketing is required to build promises with customers, manage the dialogue component of the customer relationship, and motivate customer purchase behavior. The customer experience is to deliver on the promises, represent the service component of the customer relationship, and reinforce customer purchase behavior. Time is precious, quick and prompt to respond to customer's email or SMS (Short Message Service) is very important. Dissatisfaction of customers is also very important because it provide excellent feedbacks to improve the quality and value-added of AirAsia.
Explanation / Answer
In the present world it is very important for the companies to improve their performance levels and meet the competitive edge in order to attract the customers. Air Asia needs to win over the competitive edge by focusing entirely on the customer relationship management. It refers to the art of building strong relations with the customers and then managing those relations with the customers for the long run.
In order to maintain a strong CRM the company should not copy the techniques from its competitor rather than just build new CRM strategies. The program should be such that it could fetch high returns in future in terms of satisfied customers. A company should have a strong network base so that they can compete with highly advanced networks developed by their competitors. It is a strong company network that need to work in coordination with the CRM so that great services can be rendered to the customers and resolve their queries.
CRM does not only mean creating a strong customer relation base but also marketing and fetching customer experience. With the help of marketing, the company can connect directly with the customers, make promises of delivering high value services and influence their purchase decision.
Moreover getting feedback from the customers will help enhance the relation with the customers and making a strong customer base. A satisfied customer will give feedback regarding the good services offered, whereas a dissatisfied customer will give important feedback and help the company improve on the points where it is already lacking behind. All this will help build a strong customer relation base and meet the competitive edge over the competitors.
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