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AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. They may compete in term of their route offering that Airasia does not fly. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. The other supplier such as fuel supplier, merchandise supplier, or food supplier may be depend on market condition. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. Liked our work? 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. We're here to answer any questions you have about our services. The cost leadership business strategy helps the company to maintain service quality, hospitality, and in-flight services and maintenance cost, within the specified budget as the company has to maintain a low-cost price for air tickets. The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. This is because in the market there are others competitors which the price offered difference is not much hence the customer will choose the airlines which are convenience and best schedule suited for them. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. 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. Use fundamental and technical analysis of AirAsia Group and its peers Please click here if you are not redirected within a few seconds. AirAsia is a low-cost multinational Malaysian airline. 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. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. 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. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. Air Asia comprises of a capable and dedicated customer care team, which is committed to resolving the complaints by the customer as soon as possible. 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). Home Samples Marketing Environment Analysis of Air Asia. Their slogan Now Everyone Can Fly itself sets the tone for the brand. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). Air Asia Competitor analysis In order to compete with AirAsia,. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. 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. 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. Points to consider while selecting a topic for dissertation help. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Required fields are marked *. The company AirAsia, demographic segmentation is preferred. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. It allows its customers to choose the services they want without compromising on quality. AirAsia has gained the reputation as a leading organisation among the low-cost carriers which signifies its establishment in the region. The approach towards providing the lowest costs results into a low opportunity for gaining significant profits as the company abides by its approach of maintaining lowest flight costs. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. Tiger Airways. Well established LCC operating out of South East Asia, 3. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). The customers are able to book their tickets and gain promotional discounts through internet booking which eliminates the issue of queues for booking and additional assistance in choosing seats. Swot Analysis of AirAsia Berhad. Airasia had expanded its services provides to hotel booking as it already has its own hotel (tune hotel) which located not far away from its airport, and tour packages. Looking for a flexible role? Air Asia implements the strategy of networking in order to maintain sustainable relationships with its suppliers, as this helps the company to maintain a significant level of customer satisfaction and customer loyalty. Your email address will not be published. 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. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. WebFive steps to successful analysis of. They should be used as a reference paper for further research. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). Following are the opportunities in Air Asia SWOT Analysis: 1. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. As AirAsia expanded its services, the company expanded its facilities, including travel AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines 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. Hence this concludes the Air Asia SWOT analysis. Air Asia is one of the leading brands in the airlines sector. The competitions are depending on the services provided and the suitability of the flight time for the customer. Sponsorship is also one of the great marketing tools. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. 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. We hope you found what you were looking for. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. 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). 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 in 1993, Air Asia was established to finally connect Asia like no other airline company. 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. There are several brands in the market which are competing for the same set of customers. Air Asia Competitors There are several brands in the market which are competing for the same set of customers. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Hence, customer may access to the current airlines information which are available at all time, this has reduced the power of negotiation for airlines and producing a strong customers bargaining power. Tony Fernandes was recognised as for his outstanding work in AirAsia, and he was awarded by the International Herald Tribute Award and he also became the Malaysian CEO of the year in 2003 (Roy, 2014). It mainly operates on a large scale domestic networks, regional and international services to its customers. 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). Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. Strengths. Human resource management undergoes significant political pressure as the recruitment process of AirAsia is focussed on the racial determination of the applicants rather than their merits. Similarity of product. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these year, it is quite difficult to apply for licensing and permit for operating airline company. Today, well discuss the swot analysis of AirAsia. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. Government regulations are strict. 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. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). Due to few suppliers in market, this has increasing the bargaining power of supplier. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Malindo will compete against AirAsia on all three routes. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. 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. It is an international airline that began operations in Malaysia and has since expanded to include countries across the Asian continent, such as India and Thailand. Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. The largest airline in Malaysia the business is known to be highly employee centric. This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. Air Asia is a low-cost airline headquartered in Malaysia. Multiple ticket distribution networks exist, including internet booking, exclusive reservations, sales offices, and company-approved agents. AirAsia participates in a lot of price-based promotions. There is no product differentiation while the only different is the airlines packages offered. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. Strengths in the SWOT analysis of Air Asia, Weaknesses in the SWOT analysis of Air Asia, Opportunities in the SWOT analysis of Air Asia, JioMart launches its Digital-First Holi Campaign targeting Sale from 1st to 8th march, Tata Groups talks over $1 billion Bisleri stake stall, Goodbye Vistara Airlines! It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. 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. This model is widely implemented by various organisations for the development of their strategies in the industry. This results in significant reduction in the cost as the commission fee paid to travel agents are saved and can be used to maintain the facilities and services of the company (Pinto et al., 2015). It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. 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