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Malaysian Airlines: A Business Turnover Essay

2399 words - 10 pages

Malaysian Airlines: A Business Turnover





Malaysian Airlines: A Business Turnover


Malaysia Airlines ranks among the top government-run agencies in Malaysia. The organization is the national carrier for the country flying to over 100 destinations in six continents across the world. It is based at the Kuala Lampur International Airport where its core operations are run, and recent statistics indicate that it has the strongest influence in East and south Asia regions. However, it is also important to note that its influence is also growing in Europe and Australia, which technocrats believe to be the growing influence in the ...view middle of the document...

This study shall examine the competitive, strategic approaches implemented by the Malaysia Airlines to sustain its competitive advantage position.

Competitive Strategic Approach

Mission statement

Malaysia Airlines rejuvenated its mission statement that gave the company the direction to become a money-spinning and profitable airline. At this point, the Malaysian Airlines implements a competitive and strategic approach to its mission statement, which is aimed at ensuring that shareholders, as well as stakeholders, have confidence in the company. It is important to uphold the confidence of this group because they are the major reason for the existence of the company coupled with their massive investment (Alamdari & Fagan, 2005). Boosting and upholding their confidence has ensured that they keep investing in Malaysia Airlines since their profits and returns on investment are guaranteed.

Vision statement

Malaysia Airlines vision statement reads, “Going beyond Expectation”. This is another competitive, strategic approach adopted by the airline, which focuses on the customers using the airline. In its nature, it is persuasive and appealing, meaning that it can easily persuade customers to choose the airline over others since they are assured of being offered more than they expect. Compared to other companies strategies such as Air Asia’s “Now Everybody can Fly”, Malaysia Airlines strategy seeks to convince customers seeking to use air transport that air transport is not just about flying, but also services offered, satisfactions and lifetime experiences. All these services can be found at Malaysia Airlines. This strategy has since worked because the organization has almost doubled its customer base (Kolter, 2001).

Other competitive, strategic approaches can be seen in the airlines objectives, which include the highest safety levels for travelers and the need to meet all the safety permissible necessities. Malaysia Airlines conducts its operations with the highest level of professionalism and effectual manner to meet local and international airline standards. Consequently, the airline has also implemented the structural cost management system aimed at reducing operational costs while maintaining the highest standards of comfort, safety and service delivery. The Business turnaround Plan 1 (BTP1) of 2005 and the Business transformation plan 2 (BTP2) of 2008 that runs for five years have seen the airline transform into a world-class five-star carrier. With such objectives, Malaysia Airlines has positioned itself as a benchmark in the airline industry with the capacity to map effectiveness and efficacy in all areas of its operations (Evangelho, et al. 2005).

From a wider perspective, Malaysia Airlines can implement four major strategies that will give it a competitive advantage over established airlines such as Singapore Airlines and Cathay Pacific. Profoundly, the airline can reduce its flights and capacities to...

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