AirAsia focuses on delivering accessible promotions, in which customers are aware of new product offers with minimal company intervention through simple tools such as emails. The company also uses the strength of a strong network to have a constant insight into the new strategies which are being used by the competitive companies and design its policies and strategies accordingly. Below are the top 3 competitors of Air Asia: 1. The company cannot control a number of charges and costs which are regulated by government and airline authorities which may result in a significant loss in profits and consistency of the organisation. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. Fixed cost incurred by an airline company may include the finance cost, hire purchase and staff cost while this fixed cost may be reduce through increase in market share. It allows its customers to choose the services they want without compromising on quality. AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. Over the years Air Asia has broken the travel norms for Asian countries and is known as the pioneer of low-cost travel in Asia. We are achieving positive applauds from the students that have experienced our services. This company provides both domestic, as well as international flights in its routes. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. This has been possible through excellent brand positioning. Marketing mix 7 Ps and SWOT analysis can improve the brand value of AirAsia and identify the strengths and weaknesses of AirAsia along with determining the future opportunities. This company also focuses on providing the accessibility-based promotions in which the customers are informed about their new products and services by using simple tools of promotion, such as email. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. 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. Below are the Strengths in the SWOT Analysis of Air Asia : 1. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. Lets take a look at AirAsias marketing mix. Disclaimer: The reference paper provided by Student Life Saviour should be used as a model paper, and are not intended to be submitted to the universities. 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? Rise of Other LCCs in Market. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. Required fields are marked *. They have official handles on all major platforms but for the purposes of this segment, we shall take a look at the main 3, which are Instagram, Twitter, and Facebook. In 2002, AirAsia became the first airline company in the region that allowed passengers with the facility to pay for their bookings by using credit card. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. 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. They should be used as a reference paper for further research. Bargaining power of Buyers The buyer power for Air Asia is analysed to be high as with increasing options in the international market and decreasing prices of air tickets, people of every category of society can afford flying, and hence, the bargaining power of buyers is also high. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. The threats for any business can be factors which can negatively impact its business. 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. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. 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. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Physical evidence encompasses the ways in which the company can maintain their position in the industry. Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. The business strategy of Air Asia of maintaining low cost along with providing most of the features to the passengers can also be maintained with the help of implementing new technologies, which can help the company to save capital and monetary funds that can be used for other ventures of the company (Daft, Murphy and Willmott, 2010). Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. But of course, there exist many competitors that require constant evaluation of strategies. However, the company has employed more than20,000employees to manage its worldwide operations. Do you have a 2:1 degree or higher? The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. This model is widely implemented by various organisations for the development of their strategies in the industry. Focusing on providing air travel without frills at substantially lower prices, AirAsia has managed to achieve lower prices to attain high passenger loads, market share, and profitability by eliminating provision of Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. The opportunities for any brand can include areas of improvement to increase its business. The organisational image is consistent and successful concerning the competition in the market. Today, it connects domestic and international flights to more than 165 destinations within 25 countries. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. Strengths in the SWOT analysis of Air Asia, Weaknesses in the SWOT analysis of Air Asia, Opportunities in the SWOT analysis of Air Asia, JioMart launches its Digital-First Holi Campaign targeting Sale from 1st to 8th march, Tata Groups talks over $1 billion Bisleri stake stall, Goodbye Vistara Airlines! WebThe two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. 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. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. Following is the SWOT analysis of AirAsia: Lastly, lets take a look at AirAsias social media marketing presence as digital marketing is also a very important part of any companys marketing strategy. 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%. Customers have access to market information. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. WebStep 2 Identify the competitors and group them based on the segments within the industry. The airline company has already got a subsidiary AirAsia India for the local market. The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. Looking for a flexible role? The company is constantly using innovative solutions to provide low-cost transportation. Similarity in product offering. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. AirAsia is already trying to achieve that by expanding their facilities to hotel bookings, tour packages, etc to try and gain some competitive edge along with diversifying their product portfolio. Another reason for the threat of new entrants being low is government laws and regulations which pose restrictions on applying for permissions and license for operating an airline company. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. We're here to answer any questions you have about our services. The created segments consists of consumers who share similar interests, requirements and locations. Furthermore, the company wants to serve the 3 billion people who are currently out of connectivity and cannot afford high fares. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. If you did, be sure to share, comment, and let us know! Hi, I am an MBA and the CEO of Marketing91. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. Air Asia implements the strategy of networking in order to maintain sustainable relationships with its suppliers, as this helps the company to maintain a significant level of customer satisfaction and customer loyalty. 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). WebFive steps to successful analysis of. WebAirAsias top competitors are Air India , American Airlines, Emirates Airlines , British Airways , Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. The Essay Writing ExpertsUK Essay Experts. It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. No plagiarism, guaranteed! Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). Student Life Saviour 2022 - All rights reserved. Our academic experts are ready and waiting to assist with any writing project you may have. In other word, that makes no significant differences in price between the premium airline such as MAS or Singapore Airlines if the customer purchase the ticket last minutes. Study for free with our range of university lectures! Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. Relative insignificant influence of buyer to supplier. The content on MBA Skool has been created for educational & academic purpose only. Porter five forces analysis of Airasia will help in understanding and providing solution to nature & level of competition, and AirAsia is known for its low fares and no-frills policy. AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). There are several companies associated with AirAsia including AirAsia X, Tun Hotel, Tune Monkey, AirAsia Berhad, Thai AirAsia Co. Ltd., AirAsia Japan Co., Ltd., PT Indonesia AirAsia (India) Limited. AirAsia has gained the reputation as a leading organisation among the low-cost carriers which signifies its establishment in the region. This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. Air Asia Competitor analysis In order to compete with AirAsia,. The focus of AirAsia was on maintaining its low-cost policy and in context to that AirAsia X was launched in 2007. Quizzes test your expertise in business and Skill tests evaluate your management traits. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). Region of AirAsia Flying low cost with high Hopes as the pioneer of low-cost travel in Asia, has. Star Airways and Malaysia Airlines ( AirAsia, Malaysia, and let us know applauds. In comparison to its competitors its marketing and promotional campaigns to attract the Indian price-conscious market based... May have leading low-cost airline largest low fare airline companies in Asia policy and in context to AirAsia. 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