They should be used as a reference paper for further research. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. Many airline companies have entered the airline industry and they have made the market very competitive. AirAsia has been a successful part of the airline industry for over a decade. The first decision by the Malaysian Competition Appeal Tribunal since its inception more than four years ago caught the media and publics attention. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target 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. As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. 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). 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. AirAsia is known for its low fares and no-frills policy. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. Similarity in product offering. Well established LCC operating out of South East Asia, 3. 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. They may force to continue their operation even they are facing losses in order to cope with fixed costs. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Build a competitive intelligence sales and marketing strategy based on the data Required fields are marked *. Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. No plagiarism, guaranteed! Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. In comparison to the competitors, Air Asia is credited with the lowest cost of operation at a unit cost of US$0.023 per available seat kilometer (ASK) and a passenger breakeven load factor of 52%. The introduction of ASEAN open skies policy facilitates opportunities for expansion and generalised airline regulations among the south-east countries of Asia which would benefit the organisation. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. The profits of the organisation have been observed to be remarkable which introduce an opportunity to new competitors causing a severe threat to AirAsia for sustainable profits. As AirAsia expanded its services, the company expanded its facilities, including travel However, the company has employed more than20,000employees to manage its worldwide operations. Let us now get into its marketing strategy. Do you have a 2:1 degree or higher? Exit Cost is high. Continue reading more about the brand/company. WebThe Competitors analysis of AirAsia Flying Low Cost with High Hopes looks at the direct and indirect competitors within the industry that it operates in. 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). Low Cost Model: Low cost operations and fixed costs . The company is constantly using innovative solutions to provide low-cost transportation. 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). SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. AirAsia also acquired recognition for improving its supportive and constructive management, as it received rewarded by Center Asia Pacific Aviation (CAPA) as the best airline of the year. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. This company provides both domestic, as well as international flights in its routes. Considering the competitive characteristic of Malaysian airline market, AirAsia has comparatively gained significant customer attention from the customers due to its affordable tickets and additional services. 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. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. can be threats. Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. Basic things to know before seeking help in assignment. Swot Analysis of AirAsia Berhad. The company engages in anchor pricing strategy in its marketing mix. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. Government regulations which target various aspects such as particular routes, landing permissions and share possession cause a drastic impact on the operations of the organisation. We are achieving positive applauds from the students that have experienced our services. 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. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). Their slogan Now Everyone Can Fly itself sets the tone for the brand. We hope you found what you were looking for. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. The major factor that enhances the competition between the Malaysia Airlines and AirAsia is the luggage handling service that is provided by the Malaysia Airlines. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. 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). AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. Through its efficient STP, AirAsia has been able to successfully develop its marketing strategy and make a name for itself in the market. Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. Home Samples Marketing Environment Analysis of Air Asia. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. Lets see how they compare amongst a few key indicators. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. The following are strengths and weaknesses of AirAsia: 1. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. Tiger Airways. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. 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. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Best regards from Kazakhstan.My name is Ainash. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. 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. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. They have a vast network of operations around the world, flying domestically and internationally. The airline company has already got a subsidiary AirAsia India for the local market. Air India to discontinue Vistara after merger, DS Group Partners with Lderach (Swiss Chocolate Maker), Castrols unveils a New Logo and a Refreshed Brand Identity. Interested in learning more? The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. But the company is only operating its business only in 25 countries. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). 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. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). Thank you for reading this case study. Air Asia Competitor analysis In order to compete with AirAsia,. Study for free with our range of university lectures! Fixed cost incurred by an airline company may include the finance cost, hire purchase and staff cost while this fixed cost may be reduce through increase in market share. 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. 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. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). Given the current situation, in-flight experience, especially hygiene matters a lot to customers so AirAsia should heavily market its hospitality and put customers at ease in availing their services. For example, they had a #responsibletraveller campaign on Instagram. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. 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 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. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. Air Asia is smartly using its social media in building a direct relationship with its customers. Malaysia Airlines is also considered as one of the competitors for AirAsia. AirAsia is an experienced brand in the airline industry. 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. 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). Rising Labour Costs 3. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of 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. This article has been researched & authored by the Content & Research Team. Air Asia also engages itself in the promotion of the company through social media, print advertisements, and effective billboard advertising (Mele, Pels and Storbacka, 2015). 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. 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 As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. 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