Strategic Capability of AirAsia

Hi,

Any thoughts on what do you think of AirAsia?? Simply put, would you advise say EPF or some big fund to invest in this company??

1. Are there are "BIG" future potential earnings?
2. What about their Business Model?? Is it sustainable???
3. What are their capabilities???
4. Any "unususal" strengths or core competence??
5. What are their currrent and future competitive adavantages??
6. How are the customers changing? Low cost fares??
7. Competition? Any "BIG" threats???

In my opinion and based on newspaper articles, I would not invest in this company for long term investment. Short term say, 2-3 yaers okay... but more than 5 years NO NO!!

Briefly, this business model will not last, e.g. see Ryanair, etc, Also with low investment initial capital, there is always room for new competitors! Another matter I am very concern is their huge purchases of new aircrafts!?!?! I am very, very, very uncomfortable... what it means is that say 5 years from now after the aircraft have been delivered they will need to make big capital repayments and like any other businesses, this is their ARCHILLES Heel!?!??! New planes are NOT cheap, AIRBUS, but with low cost fares, can these be justified, I ask?? Also their growth is too fast and I feel "troubled" or uneasy. We have seen too many good companies with good business models decaying very fast with these sort of corporate behaviour?!?!?!? And long haul cheap flights????? Manchester, UK. No other lost cost carriers have done this???

Any thoughts/arguments??

regards,

david chong

China Economy - MBAs Opportunities

Hi All,

The title is suggested by George, are there any specific opportunities for qualified MBAs??? Any one knows anything?? I do hear from my China students jobs for MBAs are scarce and difficult to get!! ...mmmmmmm

Also, there are many MNCs and there is this thing called "connections"??!! I also wondered what sort of salaries are being paid for MBAs? I also wonder what about the performance of MBAs in China? And as compared to the rest of the world especially Malaysia and China???


regards,

dvaid chong

Blue Ocean Strategy?

Hi All,

I have heard these words many times and I wonder what are the real issues here? Are these new really new ideas??? Many MBA students have got this book especially those taking the Innovation and Entrepreneuer subjects?? What are the authors really talking about? Are there really new "oceans" that are not yet discovered?? New industries not yet discovered? Or simply dormant??


regards,

david chong

What do you think Dell Computers should do?

Hi Everyone,

A seasonal topic for your 2 cents worth! As we have discussed earlier, Del computers is facing strong competition from HP and recently has dropped their market lead?!??! I wonder why??? And most important of all, can this be overcome?? I wonder whether the Business Schools textbooks can provide any answers? Disd they do anything wrong? Or was it that the customers are changing in a different direction? Or are the competitors simply getting better???


David chong