Grapes of Wrath and Migration Experience Essay Example for Free

Grapes of Wrath and Migration Experience Essay The novel, â€Å"The Grapes of Wrath† by John Steinbeck, takes you on a chronicle of one family’s migration, from Oklahoma to California as a result of exodus. The family is forced to migrate west in search of a livelihood during the great depression of the 1930’s. The structure of the chapters in this book alternate between narrating the journey of the Joad family with descriptions of the westward movement of migrant farmers in the 1930s as they flee drought and industry. Steinbeck, a native of California, draws from first hand experiences to guide the reader not only along the journey of one family in particular, the Joad’s but, to also expose the desperate conditions of migrant farming-families faced during the great depression in America. The Joad family was a part of a migration of people called â€Å"okies† which were farmers from the southwest that migrated westward in search of opportunity. The Okies were farmers whose topsoil blew away due to dust storms and were forced to migrate along Route 66 to California in search of work. The Okies were resented for migrating in large numbers to areas in the West where work was already hard to find and the sudden multitude of workers caused wages to be lowered. The Joads reside in Oklahoma, referred to as the Dust Bowl of the U. S . because of its lack of rain. The Joads’ were sharecroppers evicted from their homes because they failed to pay the bank their loan payments to the Shawnee Land and Cattle Company. The entire area was being evicted by the land owners, forcing sharecroppers’ to leave all that they have ever know and cared for behind in search of a sustained life elsewhere. The novel opens up by introducing the main characters and painting a picture of a dried up withering Oklahoma farming region. Released from an Oklahoma state prison after serving four years of a manslaughter conviction, Tom Joad makes his way back to his familys farm amid the desolation of the Dust Bowl. He meets Jim Casy, a former preacher and the man who baptized Tom as a child. Tom gives the old preacher a drink from his flask of liquor, and Casy tells Tom how he decided to stop preaching. He admits that he had a habit of taking girls â€Å"out in the grass† after prayer meetings and tells Tom that he was conflicted for some time, not knowing how to reconcile his sexual appetite with his responsibility for these young women’s souls. Eventually, however, he came to the decision that â€Å"there ain’t no sin and there ain’t no virtue. There’s just stuff people do. It’s all part of the same thing. † No longer convinced that human pleasures run counter to a divine plan, Casy believes that the human spirit is the Holy Spirit. Jim accompanies Tom to his family’s farm; when they find it deserted, fronted by withered crops, they find Muley in that house. Muley is an old family friend that stayed behinde while his family leaves for California to tend to his rightful land. He explains haltingly that a large company has bought all the land in the area and evicted the tenant farmers in order to cut labor costs. The three men proceed forward traveling to Toms Uncle Johns house, where they find the Joads preparing for a long trip to California in search of work. The entire family has gone to work picking cotton in hopes of earning enough money to buy a car and make the journey to California. Large California landowners have poster announcement for employment throughout western Oklahoma, and Ma and Pa Joad have decided to move their family their; evicted from their farm by the bank that owned it, they feel as though they have no choice. Once Tom has been reunited with his family, in the following chapters, the narrator assumes the voice of generic tenant farmers, expressing what their possessions and memories of their homes mean to them. The farmers are forced to pawn most of their belongings, both to raise money for the trip and simply because they cannot take them on the road. Steinbeck makes it apparent during this section of the novel that he believes that the economic system makes everyone a victim—rich and poor, privileged and disenfranchised. All are caught â€Å"in something larger than themselves. † This is used to give reference to the bigger picture of society and how situations dictate undesired behavior. In a sense it was a way of taking some hatred off the people hired to kick people off their lands because these people too lost their livelihood. When the time comes to leave, Muley Graves bids the family good-bye, but Grampa suddenly wants to stay. He claims that he aims to live off the land like Muley and continues to protest loudly until the Joads lace his coffee with sleeping medicine. Once the old man is asleep, the family loads him onto the truck and begins the long journey west. When the families leave the farms, the land if left vacant, and is worked by people with no connection to the land. This is used to drive home a theme of man and his relationship to the land as a symbol of ownership. Such a separation between work and life causes men to lose wonder for their work and for the land. As the Joads make their way down highway 66, it is described as being backed-up and filled with broken down poor farmers getting ripped off by auto repair shops selling parts. Steinbeck suggests that the hardships the families face stem from more than harsh weather conditions or simple misfortune. Human beings, acting with calculated greed, are responsible for much of their sorrow. Such selfishness separates people from one another, disabling the kind of unity and brotherhood that Casy deems holy. It creates an ugly animosity that pits man against man, as is clear in Chapter 12, when a gas station attendant suggests that California is becoming overcrowded with migrants†. Steinbeck uses Pa Joad to embody the desire to be connected with the land, this is displayed by his willingness to stay back from his family to tend and live off his native soils. Conversely Jim Casy represents the focus of the family and it’s the most important aspect is to stay together. Ma Joad also represents the glu holding the family together and the backbone of the family unit. The family reaches Oklahoma City, while here they suffer the loss of their dog, and Grandpa Joad, and are forced to give them informal funerals due to a lack of money. After suffering such a major loss, the family picks up new passenger the Wilson’s a family they met broke- down on the side of the road. A few days down the road the family gets told by a car salesman that implications of open jobs in California are false. This brings a large sense of worry among the family because there survival depends on the opportunities waiting in California. At this point of the novel the many amilies traveling along the road have come together as one family creating a sense of comfort and belonging. The people have created rules and enforcement of law; this is a drastic change in identity and life. They are no longer farmers but migrant men. The family reaches California, marking a major shift in the journey. Once in California, the family is warned by Ma that the family is falling apart, as a result of the passing Grandma and the separation from the Wilson’s. Coming after two sets of dire warnings from ruined migrant workers, Granma’s death bodes especially ill for the Joads. They now seem fated to live out the cautionary tales of the men they have met in Chapters 16 and 18, who now seem like predictors of the future. Before the Joads even set foot on its soil, California proves to be a land of vicious hostility rather than of opportunity. The unwelcoming attitudes of the police officers and border guards seem to testify to the harsh reception that awaits the family. Once in California the family is forced to move north by authority, which do not take a liking for the okies. The family reaches a camp where they stay for a little while. This camp was a squatter settlement of okies with no food or work to speak of. This is an unsettling feeling for the Joads and a sense of anguish settles over the family. A man come into the came looking for people to work, but he does not have the proper papers and will not disclose the wages to the workers. This creates skepticism by for the okies and a scuffle breaks out. Which results in Jim Casy taking the blame for Tom knocking out a police officer. The men take Jim Casy away and the Joads flee in search of safety and work. The family finds work in a peach orchard where they get paid 5 cents a basket. That evening, Al goes looking for girls, and Tom, curious about the trouble on the roadside, goes to investigate. Guards turn him away at the orchard gate, but Tom sneaks under the gate and starts down the road. He comes upon a tent and discovers that one of the men inside is Jim Casy. Jim tells Tom about his experience in prison and reports that he now works to organize the migrant farmers. He explains that the owner of the peach orchards cut wages to two-and-a-half cents a box, so the men went on strike. Now the owner has hired a new group of men in hopes of breaking the strike. Casy predicts that by tomorrow, even the strike-breakers will be making only two-and-a-half cents per box. Tom and Casy see flashlight beams, and two policemen approach them, recognizing Casy as the workers’ leader and referring to him as a communist. As Casy protests that the men are only helping to starve children, one of them crushes his skull with a pick handle. Tom flies into a rage and wields the pick handle on Casy’s murderer, killing him before receiving a blow to his own head. He manages to run away and makes it back to his family. In the morning, when they discover his wounds and hear his story, Tom offers to leave so as not to bring any trouble to them. Ma, however, insists that he stay. They leave the peach farm and head off to find work picking cotton. Tom hides in a culvert close to the plantation—his crushed nose and bruised face would bring suspicion upon him—and the family sneaks food to him. Word gets out that Tom is a murder and is forced to leave his family. Before he leave he has a hear to heart with his mother, he speaks of Jim Casy and his way of spirituality for the greater good. As Tom leaves his family to fight for social justice, he completes the transformation that began several chapters earlier. Initially lacking the patience and energy to consider the future at all, he marches off to lead the struggle toward making that future a kinder and gentler one. The Joads are left to work on the farm but, then there is a six day flood that wipes away the families cars and settlement. This forces the family to set off on foot for higher ground. Al decides to stay with the Wainwrights and Agnes. Traveling on foot, the remaining Joads spot a barn and head toward it. There, they find a dying man and small boy. The boy tells them that his father has not eaten for six days, having given all available food to his son. The man’s health has deteriorated to such an extent that he cannot digest solid food; he needs soup or milk. Ma looks to Rose of Sharon, and the girl at once understands her unstated thoughts. Rose of Sharon asks everyone to leave the barn and, once alone, she approaches the starving man. Despite his protests, she holds him close and suckles him. This is the closing of the book, which for me is an amazing ending. It was symbol of family and the fight for the greater good of the common people. Analysis In the Grapes of Wrath, we are taken along side a family of okies, who are forced to migrate west. Through this journey we can use the insights of the suffering the migrants went though to better understand the immigrant experience. Throughout history outsiders have driven people off their native land. They fall victim to the physical and environmental forces that drive them off the land. Immigrants or in this case migrant workers are labeled as trash and are used as capital gain and cheap labor. This is due a lack of options and the people are forced to work for unfair pay and to be treated unjust. The Dust bowl was an ecological and human disaster in the Southwestern Great Plains regions of the United States in the 1930s. The areas affected were Oklahoma, Texas, New Mexico, and Colorado. The poor handling of the land and years of drought caused this great disaster (Jones History). During this time the Okiesa name given to the migrants that traveled from Oklahoma, Texas, Kansas, or anywhere in the Southwest or the northern plains to Californiaencountered many hardships. These hardships are brilliantly shown in John Steinbecks The Grapes of Wrath. Scholars agree, The most important fact about the dust storms was not scientific but human: their tragic effect upon people seeking livelihood on the stricken Midwestern farms (French 4). Steinbeck believed society was inhumane to the Okies and through his novel we can account for how the Okies were treated. By looking at Steinbecks own personal background and information from historical commentaries we are better able to grasp his reasoning for writing the novel because he understood what it was like to grow up as a farmer, and an outsider. More importantly, however, we are able to share in his compassion for the Okies. To fully understand Steinbecks reasoning for writing the novel it is important to look at his family and where he grew up. John Ernst Steinbeck was born on February 27, 1902, in Salinas California. His parents were middle-class people who played many roles in the community and cultural life. His father worked as a manager of a flourmill, and his mother taught in a one-room rural school (Swisher 13). Steinbecks compassion for the Okies is clearly seen in passages like, this: The Okies are resourceful, and intelligent Americans who have gone through the hell of the drought, have seen their lands wither and die and the topsoil blow away: and this, to a man who has owned his land, is a curious and terrible pain (French 56). The encounters Steinbeck had with the Okies inspired him to write The Grapes of Wrath (Swisher 20). The Okies were not only exposed to greed but also to the terrible feeling of an empty, deprived stomach. Steinbeck remarks, And in the South he [a homeless, hungry man] saw the golden oranges hanging on trees, the little golden oranges on the dark green trees; and guards with shotguns patrolling the lines so a man might not pick an orange for a thin child, oranges to be dumped if the price was low (318). In conclusion Steinbeck wants his readers to feel the pain of the Okies. They were discriminated against because of a circumstance (The Dust bowl) they had no control over. Steinbeck can relate to this inhumane treatment because he too had suffered teasing and hatred based solely on his physical characteristics. Nature handed the Okies and Steinbeck a bad hand and he wanted society to grasp the reality of human unkindness. Steinbeck writes, If you [land owners] could separate causes (hunger in a stomach, hunger in a single soul, hunger for joy and security) from results (growing labor unity, striking at new taxes, widening government), if you could know that Paine, Marx, Jefferson, Lenin, were results, not causes, you might survive. But that you can not know. For the quality of owning freezes you forever into I, and cuts you off forever from the we (Steinbeck 206). So we can use Steinbeck’s life experiences and historical references to use the Joads journey west to better understand the immigrant experience.

Essay on Sophocles Antigone :: Antigone essays

Heroes come in many forms. Some immense in size and strength as Hercules, some in the form of people that are shunned, such as Harriet Tubman, and some that are only valorous heroes to some, such as Kurt Cobain. These heroes have many characteristics that make people flock to their side and follow them without a moment of hesitation. In Sophocles' Antigone the hero is a women who believes in her heart far stronger than that of her leader's rule. Sophecles shows many of Antigone’s characteristics that are also seen in many heroes. She is up against an impossible enemy, she does not fit well into society's mold, and is destroyed by her own pride. For these characteristics Antigone is given the title of an epic Heroine. Antigone is one of the lucky townsfolk to be born of a royal house. As Antigone defies Creon's law, she is cast into a pool of danger between what she believes is right and what the state's law decrees is right. As Antigone is charged with the burying of her brother, an action, which the King has declared unlawful, she holds like stone to her undying gratitude for her deceased brother. She believes that this will help lift the curse plagued on the household. The curse in which Antigone’s father tried to hold at bay and failed. Her sister Ismene warned Antigone by exclaiming, "Sister please, please! Remember how our father dies: hated, in disgrace, wrapped in horror of himself, his own hand stabbing out his sight. And how his mother-wife in one, twisted off her earthly days with a cord. And thirdly how our two brothers in a single day each achieved for each a suicidal Nemesis.† This has already given Antigone the mindset that even the Gods are against her will. She is also up against a great foe in fighting that of Creon's edict. Ismene said this: "The rest, if we defy our sovereign's edict and his power. Remind ourselves that we are women, and such not made to fight with men. For might unfortunately is right and makes us bow to things like this and worse.† Antigone sees herself as not only one who can defy the power of the Gods but the power of the state. Thus she would be up against a force greater than her own. Second, another characteristics of a tragic hero is that the person does not always fit into society's mold.

Air Asia Strategic Management Recommendations Essay

Introduction An analysis of the External Environment would be done so as to facilitate a direct comparison between the generic elements where AirAsia has been founded in. The report then would delve into an internal analysis whereby the Porter’s 5 Forces would reiterate the direct forces that would affect the Airline Industry and subsequently, AirAsia itself. The capabilities and core competencies of the firm would be explained in greater detail towards the latter part of the report before a series of analysis would be done to segregate the more influential ones from the rest. A series of strategies would be then recommended for AirAsia to undertake so as to continue building brand awareness and brand equity throughout the world as a low-cost carrier. 1.0 EXTERNAL ANALYSIS 1.1 Industry Identification AirAsia belongs to the airline industry. Competition in the airline industry is very intense and is growing rapidly together with the increase in demand for budget fares across Asia. The different airlines are making use of several strategies to compete with one another in the airline industry and it is crucial for airline companies to identify their competitive advantages so as to be able to achieve profits and brand equity globally. 1.2 External Environment Analysis Political/Legal: Political factors such as changes in regulation and the global trend toward privatisation of government-owned or government-regulated firms have had implications on the general environment. Furthermore, taking budget flights out of Malaysia can be quite a challenge. Many governments have been instrumental in dabbling in the success of airline companies in Asia. Most airline companies in Asia have had full or substantial state ownership as well as management and control. A prime example in Malaysia would be Malaysian Airlines System (MAS). Such companies are often well-subsidized by their governments and do not face much competition. Instead of being profit-oriented, they are more focused on fulfilling national objectives. As such, privatization and de-regulation have paved the way for new routes and airport deals via the use of open skies agreements between countries and permission of entry of private airlines (Dellit 2002) As such, they would give new airlines that are low-cost carriers such as AirAsia, Jetstar and Tiger Airways chances to access domestic routes and tapping into market share of the airline industry. However, in light of globalization, the airline industry has also been hit by threats such as terrorism, accidents, attacks and disasters. A drop in customer confidence in a particular airline company would be detrimental to a company’s profits as well, hence a low cost carrier would be subjected to factors such as aviation restrictions, consumer preferences and geographical infrastructure of Asia (Steverman 2009). To combat such uncertainties, a budget airline company would have to be meticulous in selecting favourable routes in it’s day to day operations so as to avoid any form of possible negative impacts. (Dellit 2002) Economic: Despite standard of living observed to be improving globally, there exist variations within and between countries. Economic downturns in the recent years have cost companies to lose profits in the industry. However, this proved to be an opportunity for budget airlines. The result of the recent global economic downturn which led to a worldwide stock market plunge also caused aircraft leasing costs to be reduced by 40%, and this led to an environment that had lesser competition in the airline industry. This then enabled many budget airlines to lease their aircraft at a cheaper rate, which resulted in cheaper ticket prices for their customers (AirAsia 2009). However, the possible impact of fluctuating oil prices in the economy would take a toll on operation costs when fuel prices appreciate (Milmo 2011). Revenue and profitability of the company as a whole would fall if fuel prices become too high. As such economic factors are not within airline companies’ control and are unavoidable, the opportunities would outweigh the disadvantages, presenting further opportunities for them to continue in its expansion across Asia. During economic downturns, there would be an expected demand for affordable low airfares amongst budget-conscious buyers, especially for travellers who are travelling on leisure (Ernst & Young 2012). Social-Cultural: The changing societal attitudes and cultures such as growing environmental awareness has implications on the emphasis placed on corporate social responsibility. Furthermore, in order to stay globally competitive, firms now have to consider placing more resources into sustaining competitive advantage with being environmental friendly at the same time. Rapid economic growth has also paved the way for a growing middle class within Asia’s large population, especially so in Malaysia (Ernst & Young 2012). Together with the constant and gradual increase in trade and tourism activities within Asia, the demand for travel has also increased. People are now keener on exploring places far away from home and are willing to fork out money for such experiences. In doing so, the idea of low cost airfares that would allow them to save more to spend at holiday destinations is appealing to them (Ernst & Young 2012). The attractiveness of budget airlines lie primarily with their low-ticket prices and hence would present itself as a major opportunity to budget airlines. For an airline to differentiate itself from its competitors, it has to be able to have value-added services apart from low fares to distinguish itself and outstand the rest. This works out to be a competitive advantage, which may present itself as an important factor for airline companies to have so as to succeed as a low cost carrier (DestinAsia 2012). Technological: By utilizing information technology to aid companies in e-transactions and e-commerce activities, the traditional ticketing and travel agent systems were soon replaced by e-ticketing and internet booking systems (Mouawad 2010). This meant that alongside with globalization, even the process of booking tickets have gone through a massive restructuring. Airlines are now able to save the cost of issuing physical tickets and can now do away with large and expensive booking systems as well as tour agency commissions (PRLOG 2010). However, an airline must ensure that it is not over-reliant on the Internet systems as if it is not handled properly, the risk of system destruction and database overload can affect online sales heftily. The technological aspect of the airline business would pose to be a threat if systems are not properly backed up and maintained on a regular basis (Mouawad 2010). Environmental: Global warming has become an increasing issue facing businesses all around the world as there has been increasing number of evidence of rising dangers from the ongoing buildup of human-related harmful greenhouse gases. Global emissions of carbon dioxide experienced a sharp increase peaking in 2010, hence having a greater impact on how most businesses are carried out (The New York Times 2012). Considering the fact that airplanes contribute to a large proportion of about 13% of transport-derived carbon dioxide emissions, is a cause for concern for the airline business (Whitelegg 2000). 1.3 The Industry Environment In order to analyse the attractiveness of the airline industry, Porter’s five forces framework can be employed. This evaluation is crucial to determining the Air Asia’s best strategy later in the report. Bargaining Power of Suppliers: In the airline industry, the suppliers are namely aircraft suppliers and airline employees such as the flight crew and pilots. Depending on the switching costs that are associated with changing airplanes, the bargaining power of the aircraft suppliers will vary. The bargaining power of suppliers is higher when purchasing new airplanes while it is smaller for second-hand airplanes. Labour unions specifically the pilots’ and mechanics’ unions have high bargaining power as their skills are hard to replace. In addition, there has been an observed trend whereby successful union strikes in the airline industry have led to negative abnormal returns (Finance Department Faculty Publications University of Nebraska Lincoln 1991). Furthermore, wage rates accounts for a larger proportion of costs in the airline industries as compared to other industries (Lehn 2000). Bargaining Power of Buyers: The main buyers in the airline industry are passengers consisting of Visiting Friends and Relatives (VFR) and small business travellers. As the majority of airline customers are unable to organize and coordinate, their bargaining power is low. Furthermore, with the need for organizations to negotiate well in advance and that discounts are dependent on airline expected demand, offers, and decisions forecasts and not so much on buyers, the corporate bargaining power stays low. Besides catering for passenger travel, there is also the cargo transportation whereby bargaining power is increasing with it being one of the key drivers of revenue in the airline industry. Threat of New Entrants: Although there is deregulation and liberalization in the airline industry, there are still high operating costs and upfront costs that may deter entrants such as high fuel operating costs and purchasing price of airplanes (Mint 2012). However the trend of deregulation and liberalization in the airline industry has enabled for new entrants in the industry to enter easily despite the high costs associated with start-up and operating (Moorman 1993). Also, considering that there has been an increase in demand for low-budget air travel coupled with the deregulation, there is increased competition as a result. Hence, the threat of new entrants is moderately high despite the high barriers to entry. Rivalry amongst Existing Firms: As seen from the case, there was a rapid emergence of low cost carriers across Asia as well as the neighbouring regions in a fierce competition to succeed alongside established airlines (Lawton & Doh 2008). Hence, the rivalry amongst firms is observed to be very intense. In the Asia region, other competitors that dominate the airline industry include Scoot, Jetstar, Tiger Airways and in Malaysia itself, Malaysian Airlines (Wassener 2012). Firms can differentiate themselves based on factors such as differentiation and cost leadership. Hence, the choice of providing better service or choosing to lower prices on a further and continual basis are examples of strategies that firms have employed to differentiate themselves from their fellow competitiors. This further reiterates that price competition makes rivalry amongst existing firms very high. Threat of Substitutes: The threat of substitutes for the airline industry is medium as apart from transportation methods such as rail, ship and buses, there is no direct substitute for freight services. This is due to the geographical location of the Asian region in comparison to the United States and the United Kingdom that makes it time consuming to make use of other means of transport (Lawton & Doh 2008). Hence, ferrying customers via air would reiterate that the threat of substitutes for alternative modes of transport is fairly low. However, there are many other substitutes within the airline industry for alternative low budget airlines that offer the same services with no frills and at a low cost for customers (Sreenivasan 2010). In the case of a low-cost leadership strategy that has been adopted by the industry leaders such as AirAsia, other airlines would follow suit in lowering costs to entice their competitors’ customers. Is the Airline Industry Attractive? Investors may find that the airline industry is a slightly volatile investment, however if the airline has a good establishment in the market, and is cost effective and profit generating, this will highly improve industry attractiveness. 1.4 The Competitive Environment There is a current trend of customers who favour low cost airline hence there is an increasingly number of airlines that are offering the same sort of services and products as AirAsia. This led to stiff competition in the airline industry. AirAsia’s direct competitor in this case would be other budget airlines such as Tiger Airways and Jetstar Asia (Sreenivasan 2010). This can be seen by their target market of customers being similar to their competitors across all of these firms and the strategies adopted are often identical to each other (Sreenivasan 2010). As AirAsia is deemed as the lowest cost airline in the world as of 2007, it sustained first-mover advantage, which stemmed from moving directly into undertaking a low-cost leadership initiative (Mahtani 2012). It was only after it happened that that other budget airlines begin to break into the market with replicated strategies. 1.5 Opportunities and Threats Opportunities Stimulated Market Growth: By having a plane ticket cost less than a bus ticket, bus passengers will probably want to switch to air travel. As a result, the demand will increase significantly. This same kind of market stimulation occurred when Ryanair , an Irish low cost airline, was launched. Liberalization of Geographic Markets: Full liberalization of the Asian market would open doors to AirAsia helping them expand their routes. Malaysia’s underdeveloped aviation market: Even though Malaysia’s geography may encourage air travel, a survey held in 2001 showed only 6% of the population was doing so. Therefore, it shows good opportunity for them to promote air travel in their home country. Introduction of Biofuels: Following other airlines initiatives, it is an environmentally-friendly alternative to reduce carbon emissions. Market of Potential Travelers in Indonesia, China and India: Indonesia which is located close to Malaysia has a population of 235 million. These are potential travelers specially with the joint venture already in place. India and China combined have 2.5 billion people. These sizeable markets create a potential to add new routes to and within those countries. Further Expansion into Cargo Tansportation: An agreement with a cargo company was made in 2007 and as stated by AirAsia, it to section of their ancillary income, considerably contributing to the company’s bottom line. Perhaps AirAsia can reach other deals with other cargo companies. Oakland airport: The airport is located on the west coast of the United States and may serve as an entry route into the American market. Passengers would be able to get a connecting flight to many other destinations within the US from there. Threats Firstly, a number of budget airlines would enter the market and become a threat as well existing ones who may become more competitive. At the moment there 50 budget airlines in South, East and Southeast Asia. Secondly, AirAsia may lack bilateral agreements with some counties thus deterring the optimal free flow of passengers. On the other hand, competition in the tourism industry might entice countries to open up their borders. Thirdly, important players from other regions may be willing to join the market posing a threat to AirAsia. Richard Brandson from Virgin Blue, for example, is interested in making investments in a low cost airline in Asia. Lastly, an increase in the cost of fuel may limit the company’s expansion plans as well as compromising the low cost fares brand position they hold. 2.0 INTERNAL ANALYSIS 2.1 The Firm’s Resources: Tangible and Intangible Tangible: AirAsia’s fuel efficient airbus 320 helps to maintain its low-fares brand position and at the same time being environmental friendly. Financially with the company’s IPO, there is capital available for further expansions. In addition, with the company’s hardware costs locked in coupled with the availability through the very strong surge orders that followed, AirAsia’s cost competitiveness and capacity are improved. Intangible: AirAsia has gained great favour with the Malaysian government and this enabled for easier business negotiations and relations in the country. Tony Fernandes, who had started AirAsia, is a valuable asset to the company considering his strong marketing and operational abilities. In addition, Fernandes hired leading low-cost airline experts to restructure the company’s business model and has acquired more valuable assets onboard as such. With AirAsia’s established presence through sponsorship of sports teams such as Manchester United and market leadership in the Malaysian domestic market, they have an advantage over competitors with their brand recognition. The company’s strong relationship with cargo management company, Leisure Cargo, is another intangible resource. Lastly, the airline’s low start-up operating benefit and internet booking and ticketless travel allow for the lowest possible costs structure and low distribution costs respectively. 2.2 Capabilities Identification Use of Information Technology (IT): Making bookings via the internet and having e-transactions for ticketless travels meant that it not only saved customers time but also gave them the convenience of being able to book their travel tickets anywhere and anytime (The Economist 2012). This also helped in reduction of costs when it comes to issuance of tickets and entertaining bookings via the phone or in person. Making use of IT made the overall process fuss-free and easier to handle for the company. Air tickets can also be purchased from designated Automated Teller Machines (ATM) as well as post offices, which showed how far Airasia went in making the purchase of tickets convenient for their patrons. Airasia’s ability to leverage on IT far surpassed its competitors in the field. Transportation Switch: AirAsia also went forth to dominate the domestic market by enticing current and prospective customers to make the switch from road to air transport (Lawton & Doh 2008). This can be seen in low fares that were offered from Kuala Lumpur to Penang, this tactic allowed customers to experience the in-flight comfort of the low cost airlines and boosted publicity for AirAsia (Lawton & Doh 2008). Furthermore, their decision to go into cargo transportation was a significant move in their expansion plans. AirAsia’s Brand Equity: has been rising stealthily throughout the few years that it has established in the airline industry. Having established it’s reputation as the ‘World’s Best Low-Cost Airline’, it has also won many other awards throughout its time in the airline industry (AirAsia 2007). The company’s branding initiatives are deemed to be successful, as they have been continually pushing for aggressive marketing and sustaining their growth organization-wide. (Silverstein 2010) With the airline earning such a reputable name, it has gone into establishing alliances with other airports within and outside it’s geographical region, this further advertises their brand name on a global scale. (Khor et. al 2009) Organizational Structure: The corporate structure of AirAsia is relatively simple and flat as it comprises of few levels of management so as to reduce cost and increase efficiency (AirAsia 2011). The levels of management are streamlined and together with the use of IT, employees are empowered with decision-making skills with only one or two people to report to in the organization structure. Employees are regarded as equals, and inputs are often encouraged regardless of hierarchical positions. Furthermore, as incentives are distributed based on performance of the company, employees are motivated to work harder cohesively. Product development and Innovation: Aircrafts were designed by the company to combat wear and tear as well as costs and reduction of cleaning time. Innovative ideas include setting up their own branded credit card as well as offering corporate travel loyalty points (The Economist 2012). Their aircrafts bear the logo and the name of the company, which makes it a form of advertisement and establishes it’s brand presence in the eyes of the customers (AirAsia 2007). The ‘Fly Thru’ program is an example of an innovative idea developed by the company. It reduces check in time for multiple flights and gives passenger ease of travel from the booking stage to the transit stage, reducing discomfort of having to re-check in at their transit destinations (Periabras 2012). 2.3 Core Competency Analysis From the core competency analysis, it can be deduced that some of the firm’s capabilities outstand others. Brand Equity stands for having a strong brand image and this is deemed to be one of the most sustainable competitive advantage in the long run. Factors such as use of information technology, organizational structure and product development and innovation would also make AirAsia outstand like-minded firms in the airline industry. Whereas transportation switch may be a capability that AirAsia has but it would only sustain the firm on a temporary basis and may be similar to similar capabilities that other companies have. Identifying the more outstanding factors would aid the company in recognizing its sustainable capabilities as the returns would also be higher compared to other factors. 2.4 Value Chain Analysis Primary activities Support activities Firm infrastructure Business strategies; shareholder management; partnership management; relationship building Inbound logistics Monitoring competitors; In-flight catering; flight scheduling Human resource management Pilot and sales force training; in-flight training; career planning; operational training Operations Check-in, baggage handling; bookings; cargo management; coordination of stations and hubs; on-board service; Technological development Computer reservation systems; Flight scheduling system; market research; baggage tracing system Outbound logistics Flight connections; security procedures; baggage systems; commission payments Procurement Monitoring suppliers; branding (online); delivery instruction specification Marketing and sales Advertising and promotion; loyalty card; group sales; online sales; travel agent programs Service Baggage claim service; car and hotel reservation; customer profiling service; customer relationship management 2.5 Weaknesses At the moment AirAsia is disadvantaged in that they have a majority of wide body aircrafts that are not as economical for short haul flights. North American and European low-cost carriers have around 77% narrow-body planes compared to AirAsia’s 29%. In addition, the company is limited in their ability to expand services and volumes due to limited availability of suitable terminals. There needs to be a greater supply of low-cost airlines terminals at national and international airports. These terminals allow low-cost airlines to keep costs down through quick turnaround and taxi times and therefore charging customers cheaper fares. 2.6 SWOT Analysis STRENGTHS  · Lowest cost airline in the world  · Low distribution costs  · Market leader in Malaysia  · Being innovative  · High profit margins – 35%. Amongst highest in the airline industry  · Good brand recognition  · Good management skills WEAKNESSES  · Too many wide body aircrafts instead of narrow body for shorter flights  · Lack of low-cost carriers terminals at national and international airports OPPORTUNITIES  · Stimulated market growth  · Liberalization of geographic markets  · Underdeveloped geographic market in Malaysia  · Use of biofuels; reducing carbon emissions  · Further expansion into cargo transportation  · Large market of potential travelers in Indonesia, China and India  · Oakland airport as a entrance route to the US market THREATS  · Competing budget airlines entering the market  · Lack of bilateral agreement within countries enabling a free flow of passengers  · Important players from other markets willing to join the market  · Increase in fuel cost 3.0 Strategies and Recommendations 3.1 Current Strategies Single Class, Low Fares and No Frills Airasia adopts a single class and no frills service for its airline services. (Airasia 2012) This meant that unlike global airlines, Airasia does not provide meals, entertainment or amenities for its customers. Their sole purpose is charging the customers for the most basic airfreight experience, with the goal of the destination in mind. On the other hand, they do not compromise on customer service as a result of giving reduced cost services. The products offered onboard are also standardized with characteristics that are deemed acceptable to the customers. Establishing ticket prices that are deemed the lowest competitively, Reduced Fixed Costs AirAsia’s strategy is in line with its mission to be the world’s lowest cost airline. (AirAsia 2012) The low cost structure was attributed to the company’s good planning of resources such as fuel consumption and maintenance costs so as to give customers the best yet lowest prices they can offer. (AirAsia 2008) Efficient Distribution System Seats are deemed as single class which means that there is only one class seating and it is not assigned, passengers would seat themselves on a first come first serve basis. This is done so in fairness and to save the hassle of allocating seats on the company’s behalf. (AirAsia 2012) E-ticketing also aids in saving the cost of issuing hardcopy tickets, this makes it convenient for customers and saves costs for AirAsia. (AirAsia 2008) Use of Secondary Airports AirAsia typically operates from secondary airports which mean that they would benefit from lower parking, landing and ground handling fees. Secondary airports are also less busy than main airports with most of them having shorter runways, this in turn reduces fuel consumption during take-off, landing or taxi. Fuel consumption is one of the main expenses that AirAsia has hence this is a beneficial cost saving. (AirAsia 2012) Secondary airports are often closer to urban districts which makes it more appealing to some travellers and hence increases the number of potential customers for the airline. The use of secondary airports help in boosting sales and keeping operating costs low. (AirAsia 2012) Point to Point Network AirAsia adopts a point-to-point network model whereby the flights they embark on are short-haul ones within four-hour radius or less (AirAsia 2008) Their sister airline, AirAsia X would focus more on the longer flight routes, hence the point-to-point network is based on the goal of flying a customer from the origin to the destination. Customer Loyalty Programme – ‘BIG’ AirAsia has implemented a Customer Loyalty Programme named BIG Loyalty Programme which enables for the accumulation of BIG Points and allows for the members to redeem free flights. This programme is also a collaborative approach with other BIG Partners where if customers spend their money at, they are also able to accumulate BIG points. 3.2 Future Strategies Use of E-Commerce AirAsia’s current electronic online booking system expanded to cater to different payment methods like billing and settlement plan (BSP) and computer reservation system (CRS) channels after they realized that sticking to the direct-sales only channel was a self-destructive strategy. This has created an ease of booking for customers. However, to further enhance the organization’s IT capabilities, AirAsia can hire an IT expert team to oversee the electronic commerce systems, improve web design, and include more payment methods as deemed fit. As AirAsia operates in a fast-moving services industry, the IT expert team will then meet up regularly to review the electronic commerce systems, gather the problems that surface, and provide consolidated solutions and recommendations to each problem. In addition, AirAsia has adapted Revenue Management Systems, Inc. (RMS) as their revenue management partner and selected airRM as its revenue management system (Revenue Management Systems, Inc. 2012). This has led to the organization’s ability to analyze historical data and forecast demand in order to create efficiency and hence cost savings (AirAsia 2007). In addition to this already set up system, there could be a collaboration of the IT expert team with the financial and marketing team to determine the most effective way to management inventory and revenue besides just leaving it to the IT expert team. Undoubtedly, there will be risks and barriers that will be faced when implementing these suggested strategies. One of the potential risks of E-Commerce is the fact that it increases the possibility of making wrong decisions and the impact is usually huge and swift (International Symposium on Government in E-Commerce Development 2001). Another barrier could be the culture barrier between the different functional teams (i.e. marketing, financial, IT team) that could possibly cause the collaboration of the teams to be unsuccessful. As a result, this could lead to wastage of resources. In-Flight Advertising Initiatives It is essential for AirAsia to continue building on its brand image and brand equity as it is deemed to be a capability that would not only bring in the revenue but would also establish AirAsia as a niche budget airline across households. This can only be done through further advertising and marketing initiatives. In-flight marketing is an ideal way for AirAsia to reach out to its first-timer flyers and possible returners to continue flying with AirAsia (Kirby 2010). Discounted tickets, package holidays and credit points brought forward from previous travels with AirAsia would entice customers into flying more with AirAsia. This can be done within the aircraft where customers would not be able to leave the premises (Leslie n.d). Such marketing initiatives can be incorporated into mini leaflets or flyers so that customers can explore their future holiday options on board the flight to their current holiday destination. Furthermore, flyers onboard have a receptive mindset which is due to the fact that they are excited about the new destination that they would be heading to therefore advertising to such a target audience would bring forth more responsive results (Leslie n.d). Implementing this initiative would require documents to be printed in precise and bold as well as eye-catching manner that would seize the attention of the flyers on board. It has to be attractive so that customers would enquire about it and not just take a quick glance before chucking it aside. Further reiteration can be done by in-flight staff, which could bring personal marketing into this initiative by offering their knowledge upon request. It is an inexpensive procedure for certain in-flight advertising products and it would require more initiation from interested customers. This method is ideal compared to the more expensive ideas that would require mass media for advertising purposes. In-flight advertising can take the form of magazines, radio, video or catalogs. The downside of running this strategy an in-flight marketing initiative would be the reduced target audience, which stems from having an outreach that is only aircraft wide. Limited availability of flyers on flights that are emptier compared to other flights would make the advertising initiatives redundant. Furthermore, it could incur the irritation of customers who may wish to rest and not have to deal with anything else on the flight. In-flight initiatives such as radio and videos would incur higher costs as compared to paper advertising on catalogs and magazines. Furthermore, if the advertising placement is too intrusive, consumers may in return develop negative attitudes towards AirAsia’s marketing regimes. Use of Biofuels Brazilian airlines as well as American, Canadian, German, French, Australian within many others around the world have started using or have plans on using biofuels (Lane 2012). In Asia, specifically, Thailand and Indonesia announced plans of moving towards aviation biofuels (Lane 2012). AirAsia could join the group: Sustainable Aviation Fuel Users Group (SAFUG) formed in 2008. It may be an alternative when oil prices will likely continue to rise and it is environmentally friendly, therefore they will be able to increase the number of passengers without increasing carbon emissions (Wassener 2011). Since many airlines have started or plan on switching to this kind of fuel, perhaps supply may not be enough and prices go up with high demand (Wassener 2011). Another risk would be the fact that if you are using edible crops to produce biofuel, food prices may go up. Moreover, in an attempt to increase production getting more land, natural habitats might be destroyed by deforestation (Gao, Skutsch, Masera & Pacheco 2011). Finally, a proportion of the market may be skeptical of flying on aircrafts utilizing aviation biofuels. Aggressive Promotional Campaigns AirAsia can continue creating aggressive promotional campaigns as ‘Malaysia with love’. It will make them standout in the competitive airline market. Due to the fact that social media is so widely used nowadays, social media campaigns and efforts are an excellent idea to increase brand awareness and recognition. Statistics show that 58% of firms who have used social media for over 3 years have reported an increase in sales over that period and 85% of businesses say they have had an increase in market exposure (Forbes 2012). Delta Airlines, for example, has introduced bookings through Facebook perhaps AirAsia can do the same or simple create an innovative campaign (The Independent 2010). Risks to the implementation of social media promotional campaigns is the fact that rival low cost-carriers may decide to copy this strategy allowing them to gain market exposure as well and consequently steal market share if their efforts prove to be more successful. In addition, customers who may have had bad experiences with the company will have the story quickly spread in social media networks, making it more harder for firms to contain negative publicity. References AirAsia 2008, AirAsia wins Airline Strategy Award: Finance Category Real 5 Star carrier gets Real 5 Star honour! Available from: . 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[10 October 2012] Ernst & Young 2012, Asia expected to experience changing trade patterns and huge expansion of consumption by growing middle class. Available from: .. [10 October 2012] Finance Department Faculty Publications University of Nebraska Lincoln 1991, The Effects of Airline Strikes on Struck and Nonstruck Carriers. Available from: [7 October 2012] Forbes 2012, ‘The Developing Role of Social Media in Modern Business World’. Available from: [10 October 2012] Khor, YL, Ramli, M, Azeman, A, Goh, GG. 2009, Branding an airline: a case study of AirAsia. Available from: . [9 October 2012] Kirby M. 2010, Airlines to roll out new in-flight advertising service. Available from: . [10 October 2012] Lane, J 2012 â€Å"Aviation biofuels: which airlines are doing what, with whom?†, Available from: [9 October 2012] Lawton, T, Doh, J. The ascendance of AirAsia: Building a successful budget airline in Asia. [9 October 2012] Lehn, KM 2000, ‘Soaring Labor Costs May Ground Airline Merger’, Wall Street Journal, 25 May. Available from: ABI/INFORM Global [7 October 2012] Leslie, S n.d.,Why Inflight Advertising Works. Available from: . [10 October 2012] Mahtani S 2012, AirAsia’s Tony Fernandes Pokes Fun at Singapore Airlines. Available from: . [9 October 2012] Milmo, D 2011, Oil prices pose threat to airlines’ profits and survival, IATA warns. Available from: . [10 October 2012] Mint 2012, ‘Higher fuel costs and fewer travellers worry airline firms’, Mint (New Delhi), 3 September. Available from: ABI/INFORM Global [7 October 2012] Moorman, RW 1993, ‘New entrants are no cure-all’, Air Transport World, vol.30, no. 8, pp.25. Available from: ABI/INFORM Global [7 October 2012] Moorman, RW 1993, ‘New entrants are no cure-all’, Air Transport World, vol.30, no. 8, pp.25. Available from: ABI/INFORM Global [7 October 2012] Mouawad, J 2010. Airlines Work to Catch Up to the Digital Age. Available from: . 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Stockholm Environment Institute University of York England, ‘Aviation: The social, economic, environmental impact of flying’. Available from: [11 October 2012]

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