AirAsia is a low-cost multinational Malaysian airline. Air Asia has established itself as a strong competitor in the airline industry. AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. Some factors like increased competitor activity, changing government policies, alternate products or services etc. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. As increasing in the number of airline competitor such as Jet Star and Tiger Airways which are also promote low cost fare may decrease the shifting cost of the customer lead to decrease of Air Asias customer loyalty. 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. 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. Lets understand AirAsias competitors better with analysis. The created segments consists of consumers who share similar interests, requirements and locations. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. Furthermore. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. Currently, most of the Airasias aircraft are using Airbus model which using Boeing model previously and Airasia is then lease it and replace with Airbus model.If in case Airasia may wish to switch to Boeing again, the cost of training employee in operating the aircraft feature is high. However, the company has employed more than20,000employees to manage its worldwide operations. In the context of this fact, the loyalty of the customers of Air Asia has been decreased because of the increasing competitors of Air Asia in the airlines, such as Jet Star and Tiger Airways. Webprice wars with competitors, taxes and duty imposed on the firms products. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. It has operations in over 25 countries and over 400 international and national destinations, 4. There are several brands in the market which are competing for the same set of customers. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. Quizzes test your expertise in business and Skill tests evaluate your management traits. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. Basic things to know before seeking help in assignment. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. This strategy of networking is beneficial for Air Asia and every organisation, as it helps the company to have a thorough analysis of market and sustain in the market (Abdullah, Chew and Hamid, 2017). As AirAsia expanded its services, the company expanded its facilities, including travel The company provides its services to people of every age group of society, and to the people belonging to the medium and high ranged of income or financial status. Before we get started, lets get to know the company a little more. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. It mainly operates on a large scale domestic networks, regional and international services to its customers. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. The marketing mixs 7 Ps model is a marketing strategy tool that is used in a business in order to gain the feedback from the market in relation to marketing objectives. The following are strengths and weaknesses of AirAsia: 1. The introduction of ASEAN open skies policy facilitates opportunities for expansion and generalised airline regulations among the south-east countries of Asia which would benefit the organisation. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. As there are no significant differences in the price compare to Air Asias competitor such as Tiger Airway and Jet Star as mentioned earlier, their customer do not need to spend more to shift to another airline. WebAnalysis for Cost Leadership Strategy and Core. 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). The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. 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. KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. 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. The airline offers400destinations both local and international in25countries across the world. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. 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). It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. Air Asia is one of the leading brands in the airlines sector. Fixed Cost is high. Government regulations are strict. Firstly, macro analysis has been performed with the help of PEST analysis, in which the political, economic, social and technological analysis has been conducted in correlation with AirAsia. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. 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. Air Asia is a low-cost airline headquartered in Malaysia. It must have a good relation with hotels and tourism companies around Asia. Today it is one of the most reputed Asia-based airline companies. Has Positioned itself as the major LCC in SE Asia. Diversified in product offered. 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. Well established LCC operating out of South East Asia, 3. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. 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. 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 first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). 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. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. 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 I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Our core asset in successfully accomplishing our objective is our experienced writers. The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. Currently, the priority for the company is to maintain the fundamental principle of keeping travel fair as low as possible so that people with weak financial status can also afford to travel in flights. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). The largest airline in Malaysia the business is known to be highly employee centric. Luggage handling is the major factor that is considered by the customer as well as the airlines industries and in context to this fact, Malaysia Airlines provides average 15 kg of luggage, and it does not include any additional charges in case there is few more luggage than the normal capacity provided by the airlines. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. 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%. 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. gained a smart rating of 54 whereas Malaysia Airlines has gained the rating of 85 which, signifies the contrast of both the airlines in terms of acceptance of the services and feedback by the customers (Holiday.My, 2018). But of course, there exist many competitors that require constant evaluation of strategies. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. Do check out our Free Digital Marketing Masterclass by Karan Shah. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. 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. In order to establish a new airlines company, high amount of capital along with risk-bearing capabilities and monetary funds to cope up with the challenges faced while sustaining in the airline industryare required. 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