The acronym refers to political, economic, social and technological factors. Similar service provided among every airline company so the competitive may be fierce. A recipient of numerous awards Air Asia has been consecutively designated as the leading low-cost carrier in the Asian region. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. The microenvironmental analysis for any company or organisation is performed using Porters Five force model. Porters five force analysis for Air Asia is as under: Bargaining power of Supplier Analysis of the bargaining power of suppliers is crucial for any organisation, as with the help of this, an organisation manages the capital and makes decisions regarding financial management (Thomas and Housden, 2017). The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. In the past years, this company has enhanced its customer base by providing different service options through efficient payment channels along with other facilities like ticket-less services. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. Some of the key weaknesses of Air Asia are: Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Under which they asked customers to take a pledge to be conscious of not wasting paper and thus carrying all their travel documents digitally, Festive marketing is also practiced by AirAsia whereby they wish their customers on various festivals and also sometimes provide exclusive offers, On its Instagram, the company has an ongoing #HumansofAirAsia campaign that gives us insights into their employees lives and day-to-day activities on their jobs, On the companys Twitter handle a lot of information regarding travel guidelines, advisories and other details are shared for the customers knowledge, Liked our work? It allows its customers to choose the services they want without compromising on quality. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. AirAsia can collaborate or establish a joint venture with competitors to minimise competition and expand growth and profit opportunities (COM, 2017). SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. The major reason is that the number and type of competitors remain the same for a long time,and this reduces the chance of an airline company at a lower level coming higher in the market.Different airline brands are known for various services, for instance, JetBlue is known for the quality of services and amenities and Air Asia is known for its low cost. Pacific (Cebu Air Inc, 2012), AirAsia (AirAsia, 2011), and JetStar Airways (Jetstar Airways, 2012) all reporting increase in revenues and recording profits over the previous year. Air Asia Competitor analysis In order to compete with AirAsia,. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). Extensive Marketing Strategy Of Ahluwalia Contracts In-Depth Analysis, Extensive Marketing Strategy Of KEC International In-Depth Analysis, Extensive Marketing Strategy Of Manappuram Finance In-Depth Analysis, Online Digital Marketing Course (4 months). (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). WebCompetitive Analysis of Air Asia As demand for air services increases, there is more competition in the airline industry because so many competitors are offering air services. The branding of the logo of Air Asia is essential for them. Airasia had expanded its services provides to hotel booking as it already has its own hotel (tune hotel) which located not far away from its airport, and tour packages. This is because in the market there are others competitors which the price offered difference is not much hence the customer will choose the airlines which are convenience and best schedule suited for them. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. The approach towards technology assists the organisation in minimising risks and problems and facilitating enhancement in customer services. AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. AirAsia X was regarded as having the worlds best low-cost airline premium seat and the worlds best low-cost airline premium cabin for five consecutive years (AirAsia X, 2018). The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. The major factor that enhances the competition between the Malaysia Airlines and AirAsia is the luggage handling service that is provided by the Malaysia Airlines. Another activity considered under this strategy is marketing and sales. They may force to continue their operation even they are facing losses in order to cope with fixed costs. WebAirAsia Competitors Specify up to 10 symbols: WH REGN XHR NVO VRTX HOG IHG rprx Sophisticated investors, who have witnessed many market ups and downs, frequently Required fields are marked *. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. As compared to industry leaders, they dont operate on as many routes, Merging with other low-cost airline companies, They can introduce more flights for popular and busy destinations, The increasing traffic from India as Indians prefer budget airlines. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in Similarity in product offering. About Air Asia In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). As AirAsia expanded its services, the company expanded its facilities, including travel Build a competitive intelligence sales and marketing strategy based on the data It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. In this context, Air Asia will be focusing on the use of the strategy of service innovation as it is the best strategy to effectively implement the factor of providing new and enhanced services to passengers at low cost. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). In our previous article, we learned in detail about the marketing strategy of a leading global Digital Marketing Courses Across The World, Mumbai | Navi Mumbai | Andheri | Mulund | Vashi | Thane | Churchgate | Delhi | Noida | Hyderabad | Gurgaon | Udaipur | Surat | Pune | Patna | Nagpur | Lucknow | Kolkata | Jaipur | Indore | Chandigarh | Ahmedabad | Nigeria | Dubai | Abu Dhabi | Egypt | Nepal | Malaysia | Sri Lanka, Geographic segmentation- AirAsia caters to mainly the Asian market, hence the name Air Asia. Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest In comparison to the competitors, Air Asia is credited with the lowest cost of operation at a unit cost of US$0.023 per available seat kilometer (ASK) and a passenger breakeven load factor of 52%. Air Asia is known for treating its employees and customers well. This comes with a lot of competition. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). AirAsia is a low-cost multinational Malaysian airline. The company makes use of innovative solutions in order to provide low-cost aviation. Some more of these improvement areas can be found through its SWOT analysis. In accordance with the increased demands, the options available for flying has also increased, and hence, the bargaining power for buyers is examined to be high for Air Asia. Below are the top 3 competitors of Air Asia: 1. Web- High margins compare to Airline industry's competitors - Even though Airasia is facing downward pressure on profitability, compare to competitors it is still racking in higher profit margins. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. The distribution channels for the tickets include different sources such as internet ticket booking, exclusive reservation, and sales offices along with the agents that are authorised by the company. Low Cost Model: Low cost operations and fixed costs . in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. AirAsia is a Malaysian low cost and no-frills airline company, which has a unique slogan stated as Now Everyone Can Fly. AirAsia adopted the Computer Reservation System (CRS), which enabled it to introduce the first-ever ticket-less travel facility and also provides features such as advanced boarding passes and online ticket booking. Performance of rivalry. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Air Asia has established itself as a strong competitor in the airline industry. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. Below are the Strengths in the SWOT Analysis of Air Asia : 1. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. Relative Price. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. Due to few suppliers in market, this has increasing the bargaining power of supplier. AirAsias positioning is very clear in being low-cost. It follows vital certain strategies, which include safety first, high aircraft utilisation, streaming operations, lean distribution system and point-to-point network to amplify the working of its low-cost model (Zhang et al., 2017). The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. This reduces the chances of small or medium enterprises to enter this industry, and hence, the threat of new entrants for Air Asia is very low. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. Do check. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. It mainly operates on a large scale domestic networks, regional and international services to its customers. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. WebThe Competitors analysis of AirAsia Flying Low Cost with High Hopes looks at the direct and indirect competitors within the industry that it operates in. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. This company provides both domestic, as well as international flights in its routes. Switching Cost is low. Orient Thai previously competed as a third LCC domestically but has essentially withdrawn from this market, initially shutting its LCC brand One-Two-Go in 2008. Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. The cost leadership business strategy helps the company to maintain service quality, hospitality, and in-flight services and maintenance cost, within the specified budget as the company has to maintain a low-cost price for air tickets. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. Rise of Other LCCs in Market. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. It is an international airline that began operations in Malaysia and has since expanded to include countries across the Asian continent, such as India and Thailand. The complaints received by the organisation are identified to be the consequences of low prices as the organisation may face critical problems in ensuring service and assistance with the low-cost flights. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. Hi, I am an MBA and the CEO of Marketing91. AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. Another strategy that the company will implement in the future is networking. Interested in learning more? Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Following are the opportunities in Air Asia SWOT Analysis: 1. The dynamic oil prices and service costs result into criticality for maintaining the low-cost flights as the organisation focuses on facilitating the most affordable costs to its customers (Daft, Murphy and Willmott, 2010). This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. As there are adequate options available for passengers to choose from, at the similar price as Air Asia, the company needs to focus on the amenities and hospitality services it provides to the customers. AirAsia is headquartered in Malaysia and provides transportation services to its passengers along with cargo and courier services. Today, well discuss the swot analysis of AirAsia. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. That was AirAsias 4Ps mix, detailing each strategy and its purpose. They may compete in term of their route offering that Airasia does not fly. The importance of pricing strategy is to know the strategies that are used in the market and to analyse the rivals that are present for Air Asia n the airline industry (Shaw, 2016). Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). We hope you found what you were looking for. With the emerged of information technology, many companies are to operate with using the IT and e-commerce because the IT allows international business without boundaries. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. The airline brand should exploit these circumstances. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. AirAsia has been facing the competition with the varied existing low fare airlines that include Jet Star Airways, Tiger Airways, JAL Express and Air Arabia. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. The increasing cost has made it impossible for the company to offer low prices and remain profitable. Government regulations which target various aspects such as particular routes, landing permissions and share possession cause a drastic impact on the operations of the organisation. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. Hence this concludes the Air Asia SWOT analysis. Interested in learning more? High numbers of Competitor. Knowing the increase of competition in the market, AirAsia applied the adaptation process (Hanan & Freeman, 1984) by expanding its operation to long haul services to various destinations. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. They have been a major player in the low-fare airline industry and have connected over 88 countries together. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. The Indian market is highly price-conscious. There are several brands in the market which are competing for the same set of customers. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. The companys primary focus is to build customer value. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. Home Samples Marketing Environment Analysis of Air Asia. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. Free resources to assist you with your university studies! Your email address will not be published. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. The verdict overturned the Malaysian Competition Commission (MyCC) ruling that AirAsia and Malaysia Airlines (MAS) had colluded to share the market. We're here to answer any questions you have about our services. The cost may include staff retrenchment fee, paying off the loan or debts and refunds due to flight cancellation so it may expensive for an airline company to leaving the industry. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. Air Asia Competitors There are several brands in the market which are competing for the same set of customers. Furthermore, the company wants to serve the 3 billion people who are currently out of connectivity and cannot afford high fares. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these year, it is quite difficult to apply for licensing and permit for operating airline company. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. Specific analysis has been conducted in order to analyse the market environment for AirAsia. Such events and teams have got millions of fan following, when an airline sponsors a team or an event, then it allows the company to reach new customers. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. Some writers often extend the acronyms to include legal and environmental factors. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. Continue reading more about the brand/company. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. AirAsia participates in a lot of price-based promotions. 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