What is globalisation and technology changes is refers to the changes in the world where we are moving

away from self-contained countries and toward a more integrated world. Globalization of business is the
change in a business from a company associated with a single country to one that operates in multiple
countries (Study.com, 2017). Globalisation is the process by which the world is becoming increasingly
interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased
the production of goods and services. The biggest companies are no longer national firms but
multinational corporations with subsidiaries in many countries. (BBC , 2014). A technological change is an
increase in the efficiency of a product or process that results in an increase in output, without an increase
in input. In other words, someone invents or improves a product or process, which is then used to get a
bigger reward for the same amount of work. (Study.com, 2017). Technological change means the
technical knowledge used in the production of capital and machinery. The various changes in technology
leads to an increase in the productivity of labour, capital and other production factors. Technological
progress comprises of creation of skill, new means of production, new uses of raw materials and the
widespread use of machinery. (EconomicsDiscussion, 2016).

The examples of globalisation and technological change is The telephone is an example of a product that
has undergone a technological change. It has undergone many different changes over the years that have
made it more efficient. Processes or products, such as the telephone, move through technological change
in three stages which are Invention - the creation of a new product or process, secondly is Innovation -
the application of the invention for the first time thirdly is Diffusion - how fast others begin to adopt the
innovation (EconomicsDiscussion., 2017). Globalisation Process is being a universal force. Factors
contributing to globalization include market, production, culture, labour, technology, environment and
regulation. Globalization provides huge potential profits to companies and nations. Various improvements
regarding the air travel both commercial including government and private airlines have grown.
Introduction of a few airlines from Boeing like Boeing 747 have increased the capacity of passengers to
carry and have made it affordable for people to travel with luxury and comfort. Improvements and
contribution from government has increased the development of resorts and infrastructure to attract lure
tourists from the prosperous countries in Western Europe and North America. (Jrgen Ringbeck, 2010).

Introduction of the chosen industry. The industry that I choose Is AirAsia Berhad. AirAsia needs no
introduction in ASEAN, where it is the leading low-cost carrier, connecting people and places across 132
routes, 40 of which are offered by no other airline. The Group's entire business model centers around a
low-cost philosophy which requires its operations to be lean, simple and efficient. Several key strategies
have been employed towards this effect, including the High Aircraft Utilisation where AirAsia focuses on
high frequency and high turnaround of flights, both of which add to customer convenience and greater
cost efficiencies. Its turnaround of 25 minutes is the fastest in the region. Second is the Low Fare, No Frills.
This means no frequent flyer miles or airport lounges in exchange for lower fares. Guests have the choice
of paying for in-flight meals, snacks and drinks. This is Point to Point Network. All short-haul AirAsia flights
(four-hour flight radius or less) and medium- to long haul AirAsia X flights are non-stop, doing away with
the need for human resources, physical infrastructure and facilities at transit locations. (AirAsia Berhad,
2017 ).

Current or previous competitive landscape of the industry The growth of low-cost travel in the region
has resulted in a highly competitive landscape for the low-cost carrier business. AirAsia continues to lead
the charge by combining attractive fares with outstanding products, an ever-growing network, and
consistent service standards. (AirAsia Berhad, 2017). The competitive landscape of strength of Air Asia Is
has a very strong management team with strong links with governments and airline industry leaders. This
is partly contributed by the diverse background of the executive management teams which consists of
industry experts and ex-top government officials. AirAsia is the low cost leader in Asia. With the help of
AirAsia Academy, AirAsia has successfully created a low-cost airline mentality among their workforce.
The workforce is very flexible and high committed and very critical in making AirAsia the lowest cost airline
in Asia. (Academia , 2017). The core values of AirAsia are Caring. Secondly is the Full of integrity. AirAsia
believe everything that is worth doing, is worth doing right. It's about us doing the right things at all times.
Thirdly is Hardworking, AirAsia working together towards a common goal. (AirAsia Berhad, 2017).

Globalisation and technological change make a difference. Innovative use of technology has played a key
role in AirAsia's success story, beginning with online booking. It was the first airline in Asia to go ticketless
-in March 2002 - allowing guests to pay for their bookings by credit card over the phone. Over the years,
it has built on its IT platform to increase the ease of customer transactions as well as provide greater
savings to the Group. In 2010, AirAsia unveiled its latest IT booking innovation in the form of New Skies,
which allows customers to better manage their online bookings. With the advent of the social media, tools
such as Facebook, Twitter and blogs have become integral to the Group's customer relationship initiatives.
AirAsia is, in fact, recognised as the most popular airline in the region on Facebook in terms of fan base.
(AirAsia Berhad, 2017 ) Globalisation changes in AirAsia are The globalization consideration impacts
virtually all-strategic decisions in a company. Air Asia to survival for business Air Asia operates over daily
400 flights, with both domestic and international routes covering Indonesia, Malaysia and Thailand and
with international routes, primarily from Kuala Lumpur, to Australia, Bangladesh, Brunei, Cambodia, the
People's Republic of China, Laos, Myanmar, Philippines, Singapore, Sri Lanka, Taiwan, the United Kingdom,
South Korea and Vietnam. ( Scribd Inc., 2011)

Advantages and disadvantages of the changes. AirAsia advantages of Low Distribution Costs in Utilization
of Information Technology (IT) are Being the first airline in Southeast Asia to utilize e-ticketing and bypass
traditional travel agents, AirAsia saved on the cost of issuing physical eliminating the need for large and
expensive booking/reservation systems, and agents commissions. In 2004, AirAsias website was voted
the most popular site for online shopping in Malaysia the internet bookings increased from 5% of all
bookings in 2002, to approximately 50% in 2004. AirAsia subsequently made its tickets available via post
offices and designated bank teller (ATM) machines, increasing accessibility to consumers while having
lower distribution costs, gaining more market share in the process. The disadvantages of this of Low
Distribution Costs in Utilization of Information Technology (IT) are with its reliance on IT, there is a risk of
system disruption due to AirAsias heavily reliance on online sales: any flight delays or calling their
customer line to confirm bookings would indicate that AirAsias system is not robust enough to handle
booking efficiently. This would result in the loss of customers, as confidence and satisfaction levels drop,
affecting profitability. Hence, AirAsia would have to (constantly) invest in technological equipment, and
connections to sustain and serve its huge network of company subsidiaries and affiliates (where
appropriate); incurring (high) costs. In conclusion Air Asia implement E-commerce and maximized
information technology usage to make the efficiency and effectively in the company and make possible
low cost carrier in their business. ( ZipfWorks, 2017)
Question 2

The porters five forces and its purpose is the Five Forces Being a Framework for Understanding the
Competitive Forces at Work in an Industry, And Which Drive the Way Economic Value Is Divided Among
Industry Actors. First Described by Michael Porter in His Classic 1979 Harvard Business Review Article,
Porters Insights Started a Revolution in The Strategy Field and Continue to Shape Business Practice and
Academic Thinking Today. A Five Forces Analysis Can Help Companies Assess Industry Attractiveness, How
Trends Will Affect Industry Competition, Which Industries a Company Should Compete in and How
Companies Can Position Themselves for Success. (Porter, 1979)

Define and explain all five forces. The five porter forces are the first is bargaining power of buyers. 1.
Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is driven by the:
number of suppliers of each essential input; uniqueness of their product or service; relative size and
strength of the supplier; and cost of switching from one supplier to another. Second is the Buyer power.
An assessment of how easy it is for buyers to drive prices down. This is driven by the: number of buyers
in the market; importance of each individual buyer to the organisation; and cost to the buyer of switching
from one supplier to another. If a business has just a few powerful buyers, they are often able to dictate
terms. Third is the Competitive rivalry. The main driver is the number and capability of competitors in the
market. Many competitors, offering undifferentiated products and services, will reduce market
attractiveness. Fourth is the Threat of substitution. Where close substitute products exist in a market, it
increases the likelihood of customers switching to alternatives in response to price increases. This reduces
both the power of suppliers and the attractiveness of the market. Fifth is the Threat of new entry.
Profitable markets attract new entrants, which erodes profitability. Unless incumbents have strong and
durable barriers to entry, for example, patents, economies of scale, capital requirements or government
policies, then profitability will decline to a competitive rate. (American Institute of CPAs, 1979)

Explain the importance of the five forces firms need to combat these five forces to by uncovering,
creating, and eventually capturing new demand. The differentiation firms seek to establish may not be in
new products, so to speak, but in new service models that create separation from rivals and provide the
uncontested market space necessary to limit the impact of Porters Five Forces on their operational
strategy. (Fuller, 2013) According to Porter, the five forces that shape an industry are: rivalries among
direct competitors, consumers' bargaining power, suppliers' bargaining power, the threat of industry
newcomers and the threat of substitute products or services. The importance of each force is relative,
depending on the industry. In the movie theater industry, for example, the threat of substitute products
such as online, cable and on-demand movies might make getting consumers into the theater a top priority,
rather than trying to prevent new theaters from entering the marketplace. (Porter M. E., 2008)

Provide examples of how the five forces affect the industry and business. (Porter M. , Harvard Business
School, 2011)

Comment on the extent to which the industry is attractive. The Airline industry provides a very unique
service to its customers. It transports people with a high level of convenience and efficiency that cannot
not be provided by any other industry or substitute. Airline companies pride themselves on the way they
treat their customer during the flight. They have things such as food, drinks, entertainment, and a
welcoming staff. The service of transportation is provided in other industries but the airline surpasses all
of them when it comes to timeliness. The geographic scope of the airline industry is at a global level. Some
firms are able to fly their planes all over the world while others focus on smaller geographic areas.
(Porter's Five Forces, 2017)

Advantage and disadvantage of porters five forces ADVANTAGES OF PORTER FIVE FORCES is The value
of Porters model is more that it enables managers to think about the current situation of their industry in
a structured, easy-to-understand way as a starting point for further analysis. Secondly, it helps company
to know average profitability of its industry and how it is changing over time. Thirdly They provide baseline
for sizing up companys strengths and weaknesses. Fourthly It tells us where company stands versus
buyers, suppliers, entrants, rivals and substitutes. Lastly It helps in understanding industry structure
towards fruitful possibilities for strategic action like Positioning company, shaping industry structure,
expanding profit pool defining industry. (Porter M. , Advameg, Inc., 2017) Diadvantages The format of
the porter five laid out in Porters book Competitive Advantage, is heavily oriented to a manufacturing
business and the language can be off-putting for other types of business. The scale and scope of a value
chain analysis can be intimidating. It can take a lot of work to finish a full value chain analysis for your
company and for your main competitors so that you can identify and understand the key differences and
strategy drivers. Many people are familiar with the porter five but few are experts in its use. Michael
Porters book is excellent but it is a tough read. Its also dated in its examples which can make some of the
ideas more difficult to relate to and understand how things fit together in the Internet age. The value
chain idea has been adopted by supply chain and operations experts and therefore its strategic impact for
understanding, analyzing and creating competitive advantage has been reduced. Business information
systems are often not structured in a way to make it easy to get information for value chain analysis.
(Porter M. , Differentiate Your Business., 2011)