Reference no: EM132172325

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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.