AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. Today, it connects domestic and international flights to more than 165 destinations within 25 countries. Similarity in product offering. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. They may compete in term of their route offering that Airasia does not fly. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. The competitions are depending on the services provided and the suitability of the flight time for the customer. Build a competitive intelligence sales and marketing strategy based on the data WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. Hence this concludes the Air Asia SWOT analysis. The first decision by the Malaysian Competition Appeal Tribunal since its inception more than four years ago caught the media and publics attention. Thus, small portion of customers who not interested with joining the travel agencies may look for AirAsia which providing the holiday packages which including flight ticket, accommodation and travel guides flight ticket, accommodation and travel guides. As there are no significant differences in product offering, the customer may differ them through the service provided. 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. Performance of rivalry. The company makes use of Yield Management System (YMS), Customer Reservation System (CSR) and Enterprise Resource Planning (ERP) system, which makes it more effective in providing its services, reduces overall cost, and eliminates inefficiency in their business. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. 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 AirAsias positioning is very clear in being low-cost. Rising Labour Costs 3. The microenvironmental analysis for any company or organisation is performed using Porters Five force model. The diversity results in critical issues and problems for AirAsia to manage and operate all its functions accordingly. AirAsias mission is to be the best company, which ensures good relations between its management and employees, to make everyone fly with AirAsia by attaining the lowest cost, employ new technology to maintain highest quality products and enhance service levels. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. The brand colours of Air Asia are red and white, which represent determination along with passion, perfection, and positivity to serve customers high-quality services at low prices (Mele, Pels and Storbacka, 2015). It allows its customers to choose the services they want without compromising on quality. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. 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. Free resources to assist you with your university studies! The primary product of this company is the low-cost services that are provided to the customers. Brands, such as Jet Star Airways and Tiger Airways, are sustaining in the competition as they also provide air transportation at cheap costs to people along with enhanced in-flight services and varied options for passengers.This directly affects the customer strength of Air Asia, andthese companiespose a threat to the company. 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? In this strategy, the company uses activities such as inbound logistics, where all the aircrafts are of one type; hence, reducing the maintenance cost, scheduling cost, and cost of managing inventory. The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. Below are the Strengths in the SWOT Analysis of Air Asia : 1. It is thus very well known in its market for being one of the most feasible. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. All work is written to order. The company engages in anchor pricing strategy in its marketing mix. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). 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. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. This has been possible through excellent brand positioning. Learn how your comment data is processed. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. 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 company is constantly using innovative solutions to provide low-cost transportation. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. Jetstar Airways 2. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. Supplier concentration in a few hands. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). Customers have access to market information. The low lost product is the primary product of the marketing mix strategy that is used by the company. It constantly delivers on this promise of affordability, It is extremely difficult to keep costs as low as possible due to fluctuations in fuel prices and increases in service costs, AirAsia does not have its own MRO facility, Cut-throat competition in its sector. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. 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 biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. Our academic experts are ready and waiting to assist with any writing project you may have. AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. Air Asia Competitor analysis In order to compete with AirAsia,. The opportunities for any brand can include areas of improvement to increase its business. AirAsia has won many awards over the years. Liked our work? Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. Step 4 - Determine overall industry structure and test analysis of consistency. Fixed Cost is high. Physical evidence encompasses the ways in which the company can maintain their position in the industry. AirAsia is one of Asias most successful low-cost carriers. This has been possible due to the companys relentless communication through various marketing channels. This isbecauseof increased globalisation among industries and travelling, and the tourism industry has been severely affected by it. Required fields are marked *. 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. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. Interested in learning more? Considering the competitive characteristic of Malaysian airline market, AirAsia has comparatively gained significant customer attention from the customers due to its affordable tickets and additional services. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. Lets see how they compare amongst a few key indicators. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. But of course, there exist many competitors that require constant evaluation of strategies. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. 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. There are several brands in the market which are competing for the same set of customers. AirAsia should expand into more countries, increase the market, and target new customers. They truly contribute their lifelong learning in allowing students to succeed in their academics. The threats for any business can be factors which can negatively impact its business. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. AirAsia Airline As the best low-cost passenger. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. 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. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. It was started in 1993, and the operations began in 1996. Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. Find useful insights on AirAsias company details, tech stack, news alerts, competitors and more. WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. Study for free with our range of university lectures! Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. Although the two major suppliers of aeroplane structures are Airbus and Boeing, the suppliers of other facilities required in an aeroplane, for hospitality services including food and merchandise, are available in adequate amount in the market. The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. The created segments consists of consumers who share similar interests, requirements and locations. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. Looking for a flexible role? Air Asia Revenue : RM 10,638 million (FY 2018) (9.6% increase YoY) RM 9,710 million (FY 2017) Competitive Analysis of Air Asia SWOT PESTLE The SWOT analysis of Air Asia is presented below: Your topic helped a lot, Your email address will not be published. The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. Low Cost Model: Low cost operations and fixed costs . SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. 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. 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). The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia.
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