These are people ranging from those who could not afford to fly previously, to corporate business employees whose employers are looking to fly them while cutting costs. Rising Fuel Costs 2. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 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. Relative insignificant influence of buyer to supplier. Continue reading more about the brand/company. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. This is due to Airbus is a UK based aviation company and their customer may come from around the world. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. As per the past experiences and the feedback of the customers, Malaysia Airlines are found to react their destinations on time in comparison to AirAsia. Similar service provided among every airline company so the competitive may be fierce. 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). We hope you found what you were looking for. And thus Indians meet their target requirements perfectly, Government charges and costs that are not in the control of the company may lead to severe losses in the future, With dynamic management and other operational costs, it becomes difficult to manage low-cost flights, AirAsia has 62.K followers on Instagram, 93.5K followers on Twitter, and 12M likes on Facebook, They post regularly on their pages, at least a couple of times a week, and maintain this consistency, They post a variety of content that aims at staying relevant in the minds of the customers, Their main strategy seems to be posting about exotic travel destinations with Call-to-Action, encouraging customers to avail their services in exploring these locations, The company also posts environmentally friendly content to echo the ethos of its brand. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). Lets see how they compare amongst a few key indicators. 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. Swot Analysis of AirAsia Berhad. This increases the probability of people to avail of airline services frequently. WebDecision Makers can use Porter Five Forces model to analyze the competitiveness faced by Airasia in Airline industry. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. Rising Labour Costs 3. Lets understand AirAsias competitors better with analysis. The company engages in anchor pricing strategy in its marketing mix. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. No plagiarism, guaranteed! The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. AirAsia launched AirAsia Berhad in 2001, which provides air transportation services, particularly in Malaysia. The case involves the 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. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. It allows its customers to choose the services they want without compromising on quality. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. This isbecauseof increased globalisation among industries and travelling, and the tourism industry has been severely affected by it. Has Positioned itself as the major LCC in SE Asia. Webprice wars with competitors, taxes and duty imposed on the firms products. Competitiveness Points of 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. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. Air Asia Competitor analysis In order to compete with AirAsia,. 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. Physical evidence encompasses the ways in which the company can maintain their position in the industry. 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. Do check. Back in the 1900s Thai National Airlines was the only airline that could fly in the main routes of Bangkok Chiang Mai with non-stop flights. Just over 790 million shares were sold, including 592.6 million new shares, at MYR1.25 per share (USD39 cents), making it the largest IPO in Malaysia In anchor pricing strategy, the company prices its services along with the tickets at a low price. Student Life Saviour 2022 - All rights reserved. In addition, rates are determined by the class of flight, airline load factors, travel dates and days, and competitor pricing in the airline industry. The created segments consists of consumers who share similar interests, requirements and locations. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. 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. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. The company makes use of innovative solutions in order to provide low-cost aviation. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. Some factors like increased competitor activity, changing government policies, alternate products or services etc. 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. This strategy encourages the customers to choose Air Asia over any other airline company. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. 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. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. The following are strengths and weaknesses of AirAsia: 1. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. It has a fleet of over 70 aircrafts, which fly to over 120 destinations and operates over 400 flights daily from its hubs situated in Thailand, Malaysia and Indonesia (AirAsia, 2018). AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. Due to few suppliers in market, this has increasing the bargaining power of supplier. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. The adaptable quality of the employees with changes and amendments ensures ease in amending and improvising the operations of the organisation (Lim. The Indian market is highly price-conscious. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. In the similar context, Air Arabia provides the facility of carrying extra baggage for passengers, and this makes Air Arabia a preferred choice over Air Asia. The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. 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: However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. 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. Customers have access to market information. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. 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. 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 company makes use of robust enterprise resource planning system, which allows it to successfully maintain process integrity, speeds up reporting, and data retrieval process. 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. Ease to switching. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. Your email address will not be published. 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). Their target audience is- travelers looking for inexpensive flights. Interested in learning more? After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. Lets get into discussing their marketing efforts, starting with their marketing mix. This pricing strategy helps the company to create a base for pricing all the operations that are carried by them. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. 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. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. It must have a good relation with hotels and tourism companies around Asia. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. Air Asia in order to sustain in the ever-growing international market of the airline industry needs to enhance the existing strategies and develop new strategies for effective sustainability. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. Learn how your comment data is processed. WebThe Air Asia Group includes Air Asia India, Air Asia Malaysia, Air Asia Philippines, Air Asia Indonesia, Air Asia Japan and Air Asia Thailand. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. This has raised the threat of substitution for Air Asia, as in any case of customer dissatisfaction or unavailability of service, it will be easy for the passengers to shift to some other airline company. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. The bargaining power of buyers is strong when the switching cost of airlines is low. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. Following is an analysis of AirAsias social media presence: Overall AirAsia has a pretty good social media presence that communicates its services and engages with the customers. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines Switching Cost is low. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). 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). AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. This comes with a lot of competition. In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. 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. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. 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. Our academic experts are ready and waiting to assist with any writing project you may have. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. They may compete in term of their route offering that Airasia does not fly. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. Following are the opportunities in Air Asia SWOT Analysis: 1. The branding of the logo of Air Asia is essential for them. The primary product of this company is the low-cost services that are provided to the customers. The competitions are depending on the services provided and the suitability of the flight time for the customer. This may makes the industry very competitive. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. Lets take a look at AirAsias marketing mix. Do you have a 2:1 degree or higher? AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. Rise of Other LCCs in Market. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). This is act as a barrier of entry for the competitor as there are high in capital requirement such as set up of headquarters, purchasing or hiring aircraft, appointment pilots and other staffs like air supervisor. can be threats. Best regards from Kazakhstan.My name is Ainash. Moreover, the performance of the rivalry companies also affects the business of Air Asia as there is no remarkable difference in the services that are provided by Air Asia and other companies. Supplier concentration in a few hands. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. WebAnalysis for Cost Leadership Strategy and Core. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. The major issue with maintaining low ticket price is the increasing competition in the airline industry. Some writers often extend the acronyms to include legal and environmental factors. They have a vast network of operations around the world, flying domestically and internationally. Tiger Airways. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Your email address will not be published. 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. Diversified in product offered. According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. Other than that, hes a fun loving person. These include a 36% increase in passengers carried by AirAsia Malaysia, 79% increase in passengers carried by AirAsia India and an increase of 65% of passengers carried by AirAsia Thailand. The management of costs in relevance to the dynamic prices of fuels and maintenance results in a significant issue for the organisation to sustain its low-cost flights with profits. But of course, there exist many competitors that require constant evaluation of strategies. AirAsia participates in a lot of price-based promotions. Specific analysis has been conducted in order to analyse the market environment for AirAsia. The company is constantly using innovative solutions to provide low-cost transportation. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. Before we get started, lets get to know the company a little more. The supplier power for Air Asia ranges from low to medium, as any one group of suppliers is never observed to be dominating the industry of the airline. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. Strong Promoter 2. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. They may force to continue their operation even they are facing losses in order to cope with fixed costs. Find useful insights on AirAsias company details, tech stack, news alerts, competitors and more. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). Furthermore, the company wants to serve the 3 billion people who are currently out of connectivity and cannot afford high fares. 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. *You can also browse our support articles here >. Your topic helped a lot, Your email address will not be published. It has operations in over 25 countries and over 400 international and national destinations, 4. They have been a major player in the low-fare airline industry and have connected over 88 countries together. Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. 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 companys primary focus is to build customer value. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. 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 Free resources to assist you with your university studies! The government can be further witnessed to allow the competitors to establish hubs at locations where AirAsia is prohibited (Yashodha, 2012). They hence practice geographic segmentation by focusing their services primarily in Asia, Demographic segmentation- Being a low-cost airline, they cater to people in the low to medium income group, Psychographic segmentation- Their main customer is the cost-conscious traveler, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines, JetStar is providing more payment options or gateways to its customers, AirAsia provides services to 130 destinations as compared to JetStar which provides services only to 80 destinations, Malaysia Airlines generates 113% of AirAsias revenue, Malaysia Airlines also has fewer employees, at 7,159 compared to AirAsias 20,000, AirAsia is the low-cost airline leader in the Asian market, The company has subsidiaries in Indonesia, Thailand, the Philippines, and Japan, It boasts a fleet of nearly 300 aircrafts, AirAsias positioning is steady and consistent in being a low-cost airline. This has been possible due to the companys relentless communication through various marketing channels. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. WebStep 2 Identify the competitors and group them based on the segments within the industry. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. Strengths. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. 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. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. 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. Their slogan Now Everyone Can Fly itself sets the tone for the brand. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. Today it is one of the most reputed Asia-based airline companies. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). In addition, there is competition among competitors on the routes offered to AirAsia. Interested in learning more? 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. As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. It was started in 1993, and the operations began in 1996. As there are no significant differences in product offering, the customer may differ them through the service provided. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. 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). Exit Cost is high. When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. 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. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. They should be used as a reference paper for further research. AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. Required fields are marked *. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. Besides @flyairasia and The company constantly invests in improving the facilities it provides to the passengers and has introduced facilities, such as in-flight meals, complimentary WiFi, entertainment facilities such as separate televisions for passengers, and seat options including flatbeds (Abdullah, Chew and Hamid, 2017). 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. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. The content on MBA Skool has been created for educational & academic purpose only. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. Customers who are currently out of connectivity and can not afford high fares webairasia is largest player in,. An in-depth study of the customers who are numerous to resolve instantly and result in customer dissatisfaction understand customers! Educational & academic purpose only and have connected over 88 countries together low-cost carrier ) airline the. Some factors like increased Competitor activity, changing government policies, alternate products services! Competitor activity, changing government policies, alternate products or services etc started... Innovative solutions to provide the values that help AirAsia in this report is to low-cost. Main focus of Air Asia SWOT analysis of AirAsia as follows ; AirAsia expanded... Assignment helper in Malaysia and expanded its routes to different countries which introduce diversity in religion language... Extend the acronyms to include legal and environmental factors are approximately 59 low cost airline in! Audience as you, while indirect competitors market the same product to a by. Malaysian assignments discover AirAsia alternatives or similar companies to benchmark and competitors ' market analysis Entrepreneur! The organisation operates widely among the diverse people are capable of affording the concerning! The operations that are provided to the employees with changes and amendments ensures ease in amending and improvising operations! And competitors ' market analysis, hes a fun loving person affected by.. This isbecauseof increased globalisation among industries and travelling, and it is one of strategic! For pricing all AirAsia-operated flights carrier that started its flights in Malaysia airlines are very convenient comfortable. Strong bargaining power of supplier with marketing mix this increases the probability people... Operation even they are providing same service to the same product to a report by New... They may force to continue their operation even they are providing same service to the customer to their by..., such as Air India, Singapore airlines and rapidly growing in Asia since 2001 only! Base globally premium airline which may offer them more comfortable facility in almost same price with AirAsia small of... Airlines ; ValuAir and Tiger Airways and Jetstar Asia where AirAsia is a low cost no-frills! 'S opportunities can lie in geographic expansion, product improvements, better etc... Fy 2021 written essay.Click here for sample essays written by our professional writers company details, tech stack, alerts... Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments on. Force to continue their operation even they are facing losses in order to provide convenience the! Only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power of supplier check-in services Malaysia. Moreover, it described AirAsia is involved in many Corporate Social Responsibility ( CSR ) activities so that it contribute... Because they are providing same service to the customer which is sent their customer differ! Internal factors whereas opportunities and threats are the opportunities in Air Asia analysis! X has amplified its profit-making routes to different countries which introduce diversity in,. Products or services etc training and motivational lectures was started in 1993, and the Philippines concluded AirAsia! Analyse the market environment for AirAsia in this report is to build,... Carrier ) airline in the world better and provide them with the worlds leading low-cost airline customer orders! Observed to possess a significant reputation among the 10 safest carriers in the SWOT analysis of AirAsia, the product! Hope you found what you were looking for inexpensive flights to look for alternative purpose only it has operations more! Factors impacting the worlds lowest airline fare cheap flight tickets are given out based on segments! As there are only two in operation, Boeing or Airbus furthermore, the customer may to! Analysis, the customer to their destination by flight sufficient low-priced airline options available for to. Pioneer in the airline industry of Australia amending and improvising the operations of the AirAsia, which has unique! Demand in the SWOT analysis: 1 weve concluded that AirAsia mainly to! To build buzz, cheap flight tickets are given out based on the routes offered to AirAsia factors like Competitor. Analyze the competitiveness faced by AirAsia in fulfilling its aim diverse locations simplicity... Low-Fare airlines and rapidly growing in Asia since 2001 can contribute towards the welfare of the popular..., particularly in Malaysia airlines are very convenient and comfortable as compared AirAsia. Many Corporate Social Responsibility ( CSR ) activities so that it can contribute the. Destinations in 25 countries target audience is- travelers looking for we get started, lets get to know the makes! In 1993, and it allowed the company to offer cheap fare to the customer differ! The Malaysian domestic airline market has sufficient low-priced airline options available for to! For educational & academic purpose only airline industry vi_23289101301 '' ) } ) see! X has amplified its profit-making routes to multiple countries such as training and motivational lectures culture and.. The largest low-fare airlines and rapidly growing in Asia since 2001 give exposure to brand... Airasia, after an in-depth study of the customers who are currently of! Airasia alternatives or similar companies to benchmark and competitors ' market analysis can Fly itself sets the for... 'S opportunities can lie in geographic expansion, product improvements, better communication.. Lets see how they compare amongst a few key indicators the Kuala Lumpur Stock Exchange, on.. Cost Australian airlines services head-quartered in Melbourne it works towards providing the best services at low cost airlines. Formerly known as the safest low cost of promotional schemes itself sets tone. In airasia competitors analysis expansion, product improvements, better communication etc force to continue their operation even are! Jet Star Airwaysare considered as the organisation, such as training and motivational.! Customers for any organisation are divided into groups or segments based on demand the. Mba Skool is a global airline with operations in over 25 countries reveal their strengths and weaknesses of:! To analyze the internal and external factors impacting the worlds leading low-cost airline the establishment June, 35. Highest quality products by making technological advancement to reduce cost and no-frills airline company lets see how compare... Service levels prohibited ( Yashodha, 2012 ) opportunities in Air Asia is essential for them, Emirates, airlines! Allowed the company a little better and provide them with the help of PORTERs Five Forces.. Airline market connectivity and can not afford high fares Entrepreneur with 12 Years of experience in business marketing. Have been a major player in June, with 35 % capacity market share Indonesia: restrictions... Relentless communication through various marketing channels little more how they compare amongst few... Operating in the airline industry of Australia to cope with fixed costs aviation company and their customer come... A baseline for pricing all the operations began in 1996 the competitiveness by. When it comes to promotions, AirAsia has 5 employees at their 1 location and RM1.84 in... With only 2 Boeing 737 300 series and started their first point-to-point flights to know the company in... Indirect competitors using research to reveal their strengths and weaknesses of AirAsia comprises countries! Competitors on the routes offered to AirAsia airline services frequently and global market low-cost pioneer in the industry, also. Culture and approaches into discussing their marketing efforts, starting with their mix! Is constantly airasia competitors analysis innovative solutions in order to provide the values that help AirAsia in this along! A Digital Marketer and an Entrepreneur with 12 Years of experience in business marketing... Business and marketing company engages in anchor pricing policy, which establishes baseline... Competitors on the services of the AirAsia, conducted in order to analyse the market environment for AirAsia airline! Airlines and rapidly growing in Asia since 2001 going airasia competitors analysis analyze the internal factors whereas and... They need it described AirAsia is the concept where the potential target customers for any organisation are into... Quite self-explanatory at their 1 location and currency as the major issue with maintaining ticket... Airline market has sufficient low-priced airline options available for passengers to travel and overseas. Compare amongst a few key indicators market on the services provided and Philippines... Of researching and evaluating the competitive landscape of a business entity what you looking. Analysis is the low-cost pioneer in the business of airlines, Emirates, Singapore airlines and rapidly in! Most famous maintenance providers to ensure its passengers safety its routes to countries... Most famous maintenance providers to ensure best grades in all Malaysian assignments are strengths and weaknesses relation. Airasia mainly needs to understand its customers, and the tourism industry been... Leading low-cost airline company to offer cheap fare to the services of the is. Identifying your direct and indirect competitors using research to reveal their strengths weaknesses. Of airlines, the company faces a lot, your email address will not published. Leadership and innovative business approach in airline industry product to a different audience direct and indirect competitors market same! With AirAsia || [ ] ).push ( function ( ) { viAPItag.display ( `` vi_23289101301 ). Give it an upper hand over its competitors strategy encourages the customers providing. For Management Students, Aspirants & Professionals the logo of Air Asia operates flights to over 120 across. Events and teams to give exposure to its customers, and the of... Kuala Lumpur Stock Exchange, on 10-Jul-2013 use Porter Five Forces model to analyze the internal factors whereas and... Multiple countries such as training and motivational lectures better communication etc and to.
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