Paraphrase needed (Similarwordcount) 1) The benefit of using APS system is visib
ID: 424817 • Letter: P
Question
Paraphrase needed (Similarwordcount)
1) The benefit of using APS system is visibility across the whole supply chain. The supply chain management system will ensure each party, (ie. suppliers and customers) works together in integration in terms of cross-functional scheduling and planning. So that AisAsia will have better connectivity across the supply chain.
2) 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).
3) 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).
4) 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.
5) 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
1) One of the major advantages of utilisation of APS system is data integration over the entire supply chain resulting in increased visibility and control. It will facilitate effective management of the entire supply chain system, by ensuring every involved party, that is the suppliers and customers, work in tandem with each other through integration of the entire process and utilisation of cross-functional scheduling and planning. This will provide Air Asia ability to effectively monitor and control the entire supply chain along with constant connectivity.
2) As the chief executive officer of Air Asia, to improve the performance of Air Asia through strategic management to ensure sustainability and growth for the future, extensive focus is required on implementation of information technology to gain competitive advantage. Customer relationship management needs to be the major focal point for immediate development, implementation and effective utilisation to optimise output and impact profitability positively.
3) AirAsia needs to approach development of CRM, in a unique and innovative manner instead of imitating competitors by implementation of the regularly adopted fast check-in system, through installation of kiosks. To obtain an edge over competitors and provide exceptional customer service through creation of exclusivity within the service which is imperfect alignment with customer requirements and demand. Air Asia provides customer intensive services and should continue to maintain competitive advantage and resultant profitability, through prioritizing of customer needs to foster exclusive relationships with customers (according to Hillman and Keim).
4) Within the aviation industry the operation of competition is on a distinctly different pattern, with most competition being between networks rather than companies. For example, Malaysian Airline system does not compete against AirAsia, in spite of both being low fare airlines. The competition is between the networks of both the companies. Air Asia promote the company through the companies web page and newspapers with most affordable pricing for advertisement. There is no doubt that network services cannot have a strong and lasting relationship in the long run. Therefore, it is essential that the network work in coordination with CRM to deliver information to customers, which is valuable to them and solve customers problems in and effective and efficient manner which can prove to be a major competitive advantage in an industry which is customer service centric.
5) Lastly, simple notification from area to customer can prove to be a great opportunity for creation of value dialogue with customers. The major goal for implementation of CRM is to create a customer relationship which is unique through perfect development of the basic functions of marketing and customer service leading to a unique and exclusive customer experience. Marketing strategy is required to create relationship with customers bye building curiosity through promise of service, managing the dialogue component of the customer relationship and motivating the customer to make a purchase. The customer service needs to be superlative to ensure delivery on the promises made, provision of excellent and satisfactory service to further strengthen customer relationship and ensure reinforcement by securing customer loyalty through regular purchase. Sensitivity to customer means and prioritising customer service through minimising response time for every customer, through easily implemented communication technology and digital media such as email or SMS is extremely important to make a customer feel valued and important. Regular feedback from customers regarding the opinion of the services provided by Air Asia, can be an important tool for improvement of quality of service and further value addition of Air Asia as a brand.
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