discuss the concept of cost advantage

discuss the concept of cost advantage

Review  the attached file and discuss the concept of cost advantage. Review textbook Figure 7.10, Using the value chain in cost analysis.

A case study is a puzzle to be solved, so before reading and  answering the specific questions, develop your proposed solution by  following these five steps:

  1. Read the case study to identify the key issues and underlying  issues. These issues are the principles and concepts of the course area  which apply to the situation described in the case study.
  2. Record the facts from the case study which are relevant to the  principles and concepts of the course area issues. The case may have  extraneous information not relevant to the current course area. Your  ability to differentiate between relevant and irrelevant information is  an important aspect of case analysis, as it will inform the focus of  your answers.
  3. Describe in some detail the actions that would address or correct the situation.
  4. Consider how you would support your solution with examples from  experience or current real-life examples or cases from textbooks.
  5. Complete this initial analysis and then read the discussion  questions. Typically, you will already have the answers to the questions  but with a broader consideration. At this point, you can add the  details and/or analytical tools required to solve the case.

Case Study Questions:

  1. Discuss how AirAsia achieves a cost advantage. Provide an in-depth  analysis for AirAsia Construct and use a value chain to show how  AirAsia achieves its multiple cost advantages.
  2. Are AirAsia’s cost advantages imitable by other airlines? Why or why not?
  3. Can AirAsia effectively compete in long-haul air travel given the  nature of its existing strategy and the nature of the cost advantages  that underpin AirAsia’s existing strategy?