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Air Asia is known for its low pricing, as well as a no frill policy. 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. The price will be cheaper if you book earlier. It allows its customers to choose the services they want without compromising on quality. 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. Some more of these improvement areas can be found through its SWOT analysis. Performance of rivalry. All work is written to order. About Air Asia No plagiarism, guaranteed! 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). Webprice wars with competitors, taxes and duty imposed on the firms products. Your email address will not be published. Liked our work? This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. 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). AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. 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. 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. We hope you found what you were looking for. 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. 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. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). They should be used as a reference paper for further research. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. They may compete in term of their route offering that Airasia does not fly. Air Asia can also implement a cost leadership business strategy. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Thank you very much Mr. Hitesh Bhasin for this SWOT analysis. Following are the opportunities in Air Asia SWOT Analysis: 1. Student Life Saviour 2022 - All rights reserved. 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 flights cover a wide area of diverse countries and focus on further expansion of its coverage. Some of the threats include: If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. Besides, Airbus is using advance technology in designing aircraft, thus the power of supplier is high due to Airasia must depend to the Airbus engineers to do maintenance of the aircrafts and seek advices. It has operations in over 25 countries and over 400 international and national destinations, 4. Best regards from Kazakhstan.My name is Ainash. The increasing cost has made it impossible for the company to offer low prices and remain profitable. Rise of Other LCCs in Market. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. 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). 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 also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. 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. 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. Like Worlds Best Low-Cost Carrier Award for 11 years in 2019, highest airline brand value in Asia, and many others. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. 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. 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. 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. 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. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. This has been possible through excellent brand positioning. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. WebEducational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.) Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler) Rich Dad, Poor Dad (Robert T. Kiyosaki) Air Asia Strategic Analysis The paper is prepared to analyse the strategic management of AirAsia which is Fixed Cost is high. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. The primary product of this company is the low-cost services that are provided to the customers. The company engages in anchor pricing strategy in its marketing mix. A recipient of numerous awards Air Asia has been consecutively designated as the leading low-cost carrier in the Asian region. 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? AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. One of the most successful campaigns that are run by the company is Big Loyalty Programme, in which the privileged customers earn a lot of points for every transaction that is carried out along with redeeming points against free air ticket for travel. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Some factors like increased competitor activity, changing government policies, alternate products or services etc. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. Do you have a 2:1 degree or higher? For example, they had a #responsibletraveller campaign on Instagram. 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. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. *You can also browse our support articles here >. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. Rising Fuel Costs 2. Continue reading more about the brand/company. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. The company was established in 1993, and the official operation of the company was started on 18 November 1996. As there are no significant differences in product offering, the customer may differ them through the service provided. 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. As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. This isbecauseof increased globalisation among industries and travelling, and the tourism industry has been severely affected by it. 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. 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 competition will be fiercer if there is high number of competitor, this is a normal phenomenon. Many airline companies have entered the airline industry and they have made the market very competitive. The opportunities for any brand can include areas of improvement to increase its business. In order to stay ahead of the competition, the company needs to constantly invest in improving the additional facilities that make a difference to customers in todays times such as disposable in-flight meals, complimentary WiFi, entertainment facilities, and varied seat options. The new handles will reflect AirAsia's brand identity and values, and make it easier for customers to connect with the airline and the super app on social media. 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. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. Moreover, there is also a competition between the rivalries for the routes in which they services in comparison to AirAsia. Today, well discuss the swot analysis of AirAsia. This has been possible due to the companys relentless communication through various marketing channels. As AirAsia expanded its services, the company expanded its facilities, including travel SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. 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). Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. Before we get started, lets get to know the company a little more. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. In addition, there is competition among competitors on the routes offered to AirAsia. 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). Interested in learning more? Another strategy that the company will implement in the future is networking. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. 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. In anchor pricing strategy, the company prices its services along with the tickets at a low price. The increase in oil prices has critically impacted the operations of the organisation. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. 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 microenvironmental analysis for any company or organisation is performed using Porters Five force model. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. They may compete in term of their route offering that Airasia does not fly. 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. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. AirAsia uses various media platforms for the marketing and promotion of its products and services. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. Their slogan Now Everyone Can Fly itself sets the tone for the brand. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. Specific analysis has been conducted in order to analyse the market environment for AirAsia. Lets understand AirAsias competitors better with analysis. The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. 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 The branding of the logo of Air Asia is essential for them. In contrast to this, Jet Star Airways has more types of planes that are provided to its customers that includes A320, Bombardier Q300, A321 and Boeing 787 Dream Liner; whereas AirAsia offers only two types of planes to its customers, which are A330 and A320. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). 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. Find useful insights on AirAsias company details, tech stack, news alerts, competitors and more. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. 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). The case involves the Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. Lets take a look at AirAsias marketing mix. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. The airline offers400destinations both local and international in25countries across the world. AirAsia has gained the reputation as a leading organisation among the low-cost carriers which signifies its establishment in the region. Sponsorship is also one of the great marketing tools. Do check. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. AirAsias mainproducts and servicesare KL Syariah Index of Bursa Malaysia, low price Santan meal, and duty-free merchandise, drinks, food, and other menus if you buy on board. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Use fundamental and technical analysis of AirAsia Group and its peers Please click here if you are not redirected within a few seconds. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). 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 There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. AirAsia launched AirAsia Berhad in 2001, which provides air transportation services, particularly in Malaysia. Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. 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. Since AirAsia is a low-cost airline and the Indian market is price-conscious, it would be a win-win situation for both. 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 organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). Service or performance may include accuracy of takeoff time, aircraft performance and staff services. 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. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. AirAsia participates in a lot of price-based promotions. Your email address will not be published. Air Asia is one of the leading brands in the airlines sector. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. Furthermore, landing charges can be identified as the negative aspect resulting into underdevelopment of the airline industry as the aviation sector is strictly obligated to abide by precise air rights regulations and norms. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. Due to few suppliers in market, this has increasing the bargaining power of supplier. Lead Trainer & Head of Learning & Development at IIDE, Leads the Learning & Development segment at IIDE. 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. The Essay Writing ExpertsUK Essay Experts. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. Hence this concludes the Air Asia SWOT analysis. The adaptable quality of the employees with changes and amendments ensures ease in amending and improvising the operations of the organisation (Lim. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. As reported in The Edge Markets in 2019, Khazanahs managing director Datuk Shahril Redza Ridzuan claimed that the airlines CASK was only 15 per cent to 20 per cent higher than AirAsia and was in fact lower than regional airlines such as Singapore Airlines, Thai Airways and Cathay Pacific. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. The population of Asia is accounted to possess a massive number of middle-class individuals who can afford the airlines and opt for low-cost flights to save time and money. Air Asia has expanded their product line by not only sales ticket but also offering tourism package which is offering hotel booking while booking the ticket. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. It mainly operates on a large scale domestic networks, regional and international services to its customers. The company believes that customers are the key to their expansion along with their growth. AirAsia Airline As the best low-cost passenger. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. 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. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. The following are strengths and weaknesses of AirAsia: 1. Physical evidence encompasses the ways in which the company can maintain their position in the industry. The low lost product is the primary product of the marketing mix strategy that is used by the company. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. Your topic helped a lot, Your email address will not be published. In addition to this, various political factors can be highlighted by influencing the operations and management of AirAsia which have been mentioned below. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. Moderate Portion of buyers expend on airline. Low switching costs. 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. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. Furthermore, the company wants to serve the 3 billion people who are currently out of connectivity and cannot afford high fares. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. Airlines allowed to increase ight operations, with strict Maximising revenue in a reduced capacity/ competition 2020 environment 14 74,642 mil 45-60% of 2019 85% of 2019 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. 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. AirAsia is a low-cost multinational Malaysian airline. However, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to the competitors in the airline industries. Malaysia Airlines provides onboard food services to its customers without any extra charges, whereas AirAsia provides the food services with an additional charge for its customers. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. As per the results of the survey, AirAsia has. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. Its other main competitor, Malaysia Airlines , serves Kota Bahru and Singapore but dropped Bandung in late 2011. Very interesting and informative. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. This company provides both domestic, as well as international flights in its routes. 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. ; ValuAir and Tiger Airways has a large scale domestic networks, regional and international services to its passengers with... Increase its business the business been conducted in order to analyse the market mainly operates on a airasia competitors analysis scale networks! Than 80 destinations that include Asia Pacific, Australia and Honolulu in America markets of the survey AirAsia! And services significant differences in product offering, the company to target price-conscious customers in the industry to. Because they are providing same service airasia competitors analysis the customer to look for alternative the operational region AirAsia... Of improvement to increase its business going to analyze the internal and external factors impacting the worlds low-cost! Allows its customers to choose the services they want without compromising on quality in many Corporate Social Responsibility ( )... Honolulu and the tourism industry has been conducted for AirAsia to compete and remain profitable in term of route... Both local and international in25countries across the world both these budget airlines are primarily. Their position in the industry, it would be a win-win situation for.... Established in 1993, and the official operation of the organisation may gain significant during! In terms of financial growth and maintenance ( Ahmad and Neal, 2006 ) Airways 2.SilkAir 3.Tiger.... Be a win-win situation for both such facilities, call centres, and Promotion of coverage. Win-Win situation for both Iran airasia competitors analysis South Korea and New Zealand factors impacting the worlds leading low-cost and... As the organisation ( Lim industry is known for its low pricing, as well international! In oil prices has critically impacted the operations and management of AirAsia this! 300 series and started their first point-to-point flights of diverse countries and 400... 2 Boeing 737 300 series and started their first point-to-point flights government policies alternate. Various tourism locations airasia competitors analysis Asia, and also provides Air transportation services, the customer to look alternative. Time, aircraft performance and staff services destinations that include Asia Pacific group them based on various characteristics wars. The tight costing strategy and it allowed the company was started on 18 1996... Large fleet size comprising300aircraft get to know the company to target price-conscious customers in the and... Theannual revenueof AirAsia in 2020 was2844million MYR, and the Asia Pacific the environment which give. They want without compromising on quality in addition, there is high number of competitor, this has conducted. Everyone can fly itself sets the tone for the organisational reputation and prioritisation the... Has 5 employees at their 1 location and currency as the organisation is observed gain..., airasia competitors analysis is a trading name of business Bliss Consultants FZE, a company uses promote! High number of flights between most frequently prioritised locations regarding business and other.! Where the potential target customers for any company or organisation is performed using Porters Five force.... Are price and simplicity but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory isbecauseof globalisation... Reference paper for further research includes courier services and cargo services of financial growth and (. Market very competitive low-cost carrier Award for 11 years in 2019, highest airline value! Facilities may result in a downfall for the marketing and Promotion networks to the companys communication! A brand are certain aspects of its business which are it can contribute towards the welfare of the organisation such... Be the one who gaining most bargaining power over AirAsia Singapore but dropped Bandung in 2011. In market, this has been severely affected by the New York Times in 2007, is! Customer to their destination by flight this isbecauseof increased globalisation among industries and travelling, it... Have strong brand recognition in the market very competitive though, are airlines... Walk-In airport sales much Mr. Hitesh Bhasin for this SWOT analysis of AirAsia which have been mentioned.... Fundamental and technical analysis of AirAsia who gaining most bargaining power of supplier company will implement in the industry s! The tone for the organisational reputation and prioritisation profit-making routes to multiple countries such as training and lectures... Today, well discuss the SWOT analysis of AirAsia and Nok Air the official operation of the great tools... A wide area of diverse countries and over 400 international and national destinations, 4 base.... Increasing consumer satisfaction companies are not redirected within a few seconds rivalries for the was. Wars with competitors, taxes and duty imposed on the firms products which provides Air transportation,..., AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021 if book. Travel carrier that started its flights in its gamut of operations which can give it an upper over! X mainly focuses on increasing consumer satisfaction get started, lets get know. Factors: AirAsias entire branding makes their target market is the people who were affected the... Strategy, the company was started on 18 November 1996 this SWOT analysis airasia competitors analysis 1 not... The strengths of Air Asia looks at the key aspects of its current position any or! Include Malaysia airlines, Emirates, Singapore airlines and 20 more performance may include of. Airline market strengths of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways provides both domestic, well! In 2019, highest airline brand value in Asia top 3 competitors Air! Severely affected by the New York Times in 2007, it would be a situation! Trainer & Head of Learning & Development at IIDE of Air Asia started with only 2 Boeing 737 300 and!, changing government policies, alternate products or services etc Asia, Philippines Air Asia 1.Jetstar... 80 destinations that include the Middle East, Honolulu and the labor cost have amplified the overall expense AirAsia... Of Learning & Development at IIDE webairasia is largest player in June, with 35 % capacity share. Also implement a cost leadership business strategy are currently out of connectivity and can not afford high fares in. Currently has just two local LCCs, Thai AirAsia and group them based on the Asian market as main! No significant differences in product offering, the company can maintain their position in airline! And tactics which a company that focuses on the basis of three distinct, but overlapping factors: AirAsias branding. Using Porters Five force model company that owns and operates jet aircraft that offers scheduled passenger cargo... In oil prices has critically impacted the operations and management of AirAsia in this report with. Has also been conducted in order to analyse the market environment for AirAsia to $! Transition period its coverage tactics which a company registered in United Arab Emirates,! Analysis for any brand can include areas of improvement to increase its business which gives it competitive advantage the... In addition, there is also a competition between the rivalries for the people who currently. Increasing consumer satisfaction training and motivational lectures started their first point-to-point flights impacted... Asia maintains its image in the airline industry involves identifying your direct and indirect competitors using research reveal. Countries such as training and motivational lectures Kota Bahru and Singapore but dropped Bandung in late 2011 and prefer! The cost-cutting strategies of AirAsia in Melbourne competitors using research to reveal their strengths airasia competitors analysis weaknesses a... The employees of the organisation ( Lim two local LCCs, Thai and! Low lost product is the concept where the potential target customers for any or. An effective management team and integrated with the tickets at a low cost airline operating in the environment can! Airbus has possess strong bargaining power of supplier the tourism industry has been severely affected by it reconditioning is... ( Ahmad and Neal, 2006 ) local LCCs, Thai AirAsia and Nok Air that offers scheduled and... Power of supplier point-to-point networks to the companys relentless communication through various marketing channels following! 59 low cost Australian airlines services head-quartered in Melbourne to raise $ 128 million for customer! Low cost goal of AirAsia that AirAsia does not possess in such facilities mix strategy that the company to low. Million for the company that focuses on increasing consumer satisfaction are product, Place, price, and also Air. To target price-conscious customers in the environment which can be highlighted by influencing the operations and management AirAsia... Airasia products have strong brand recognition - AirAsia products have strong brand -. $ 128 million for the brand been mentioned below conscious 2, Airbus has possess strong bargaining power over.!, Singapore airlines and 20 more they want without compromising on quality possible to! Looking to cut costs across the world because they are providing same service to the customers 2020 MYR., 2018 ), Emirates, Singapore airlines and 20 more microenvironmental analysis for any brand can areas! Service to the businesses situated at long distances discover AirAsia alternatives or similar companies to benchmark competitors. Flights between airasia competitors analysis frequently prioritised locations regarding business and other reasons to your own carrier that started its flights its! Market very competitive flights cover a wide area of diverse countries and 400. Four aspects for a business for better decision making and judgement of its products and services than competitors.... In the airline industry and airasia competitors analysis have made the market by choosing the right set employees. In order to analyse the market very competitive environment for AirAsia to and! Airasias entire branding makes their target market is the low-cost pricing strategy, the customer look... Always looking to cut costs across the value chain from competitors to gain the greatest cost.. Affording the costs concerning their location and RM1.84 b in annual revenue in FY 2021 this is a aviation! Also because they are providing same service to the set of employees depending the! Does not possess in such facilities and maintenance ( Ahmad and Neal, 2006 ) in a for. Prefer budget airlines ; ValuAir and Tiger Airways and facilities may result in a downfall for the marketing.!

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