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. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. 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. There is no product differentiation while the only different is the airlines packages offered. 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. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. 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. 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. Government regulations are strict. Rising Fuel Costs 2. 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 also engages in direct service development strategy by treating employees as an essential part of the organisation. 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. 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. 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. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. There are several brands in the market which are competing for the same set of customers. AirAsia uses various media platforms for the marketing and promotion of its products and services. When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. They truly contribute their lifelong learning in allowing students to succeed in their academics. Similar service provided among every airline company so the competitive may be fierce. The companys primary focus is to build customer value. It has operations in over 25 countries and over 400 international and national destinations, 4. Let us start the Air Asia SWOT Analysis: For Air Asia, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. It is essential to choose the right set of employees for the organisation in order to maintain their position. Thus, small portion of customers who not interested with joining the travel agencies may look for AirAsia which providing the holiday packages which including flight ticket, accommodation and travel guides flight ticket, accommodation and travel guides. The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. AirAsia focuses on delivering accessible promotions, in which customers are aware of new product offers with minimal company intervention through simple tools such as emails. As the rivalry is strong, Airasia may constant in price reduction to compete with them. Continue reading more about the brand/company. 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). For example, they had a #responsibletraveller campaign on Instagram. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. It has been reviewed & published by the MBA Skool Team. Swot Analysis of AirAsia Berhad. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. In Kuala Lumpur. 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). AirAsia focuses on providing guests with comfort through competent facilities that meet industry standards, as well as regular flights and secure point-to-point connectivity. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. 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). At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. Continue reading more about the brand/company. This is due to Airbus is a UK based aviation company and their customer may come from around the world. The airline offers400destinations both local and international in25countries across the world. DRB-HICOM, a government conglomerate laid the foundation of AirAsia in 1993 and it became operational on Nov 18, 1996. Orient Thai previously competed as a third LCC domestically but has essentially withdrawn from this market, initially shutting its LCC brand One-Two-Go in 2008. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. The airline which was set up in the year 1993 started operations in the year 1996 and is thus a fairly new airline. 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 offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in That was AirAsias 4Ps mix, detailing each strategy and its purpose. 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 Build a competitive intelligence sales and marketing strategy based on the data Required fields are marked *. Lets understand AirAsias competitors better with analysis. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. Multiple ticket distribution networks exist, including internet booking, exclusive reservations, sales offices, and company-approved agents. They have been a major player in the low-fare airline industry and have connected over 88 countries together. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). 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 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). In the past years, this company has enhanced its customer base by providing different service options through efficient payment channels along with other facilities like ticket-less services. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. Best regards from Kazakhstan.My name is Ainash. The increase in oil prices has critically impacted the operations of the organisation. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. 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 airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. 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. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Low switching costs. 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. Step 3- Assess the Porter Five Forces in relation to the Airline industry and assess which forces are strong in Airline and which forces are weak. 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? Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. 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. They may force to continue their operation even they are facing losses in order to cope with fixed costs. High Switching Cost. Their target audience is- travelers looking for inexpensive flights. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. With the increasing number of services by different competitors, AirAsia has also expanded its facilities including the tour packages and hotel booking services that help the company to sustain in the market. Rising Labour Costs 3. AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. The increasing cost, competitors, and limited international destinations are some of the main challenges. The branding of the logo of Air Asia is essential for them. It provides an understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT) in relation to its competition. This article has been researched & authored by the Content & Research Team. 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. 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. Lets see how they compare amongst a few key indicators. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. 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. Customers have access to market information. WebFive steps to successful analysis of. WebAnalysis for Cost Leadership Strategy and Core. 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). 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. Similarity of product. Another strategy that the company will implement in the future is networking. Switching Cost is low. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. They should be used as a reference paper for further research. But the company is only operating its business only in 25 countries. Diversified in product offered. 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 airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. Today it is one of the most reputed Asia-based airline companies. 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. Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. AirAsia should expand into more countries, increase the market, and target new customers. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. Has Positioned itself as the major LCC in SE Asia. 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. The following are strengths and weaknesses of AirAsia: 1. Sponsorship is also one of the great marketing tools. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. Concentration of Buyers power in many hands. Their slogan Now Everyone Can Fly itself sets the tone for the brand. In our previous article, we learned in detail about the marketing strategy of a leading global Digital Marketing Courses Across The World, Mumbai | Navi Mumbai | Andheri | Mulund | Vashi | Thane | Churchgate | Delhi | Noida | Hyderabad | Gurgaon | Udaipur | Surat | Pune | Patna | Nagpur | Lucknow | Kolkata | Jaipur | Indore | Chandigarh | Ahmedabad | Nigeria | Dubai | Abu Dhabi | Egypt | Nepal | Malaysia | Sri Lanka, Geographic segmentation- AirAsia caters to mainly the Asian market, hence the name Air Asia. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). 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. Interested in learning more? Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. 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). 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%. 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. Air Asia is known as one of the most low-cost airlines in the airline industry. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. Following is the SWOT analysis of AirAsia: Lastly, lets take a look at AirAsias social media marketing presence as digital marketing is also a very important part of any companys marketing strategy. 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. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. This comes with a lot of competition. Air Asia is known for treating its employees and customers well. 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). 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. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. Lets get into discussing their marketing efforts, starting with their marketing mix. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. WebCompare AirAsia against competitors. Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. The company believes that customers are the key to their expansion along with their growth. WebThe Air Asia Group includes Air Asia India, Air Asia Malaysia, Air Asia Philippines, Air Asia Indonesia, Air Asia Japan and Air Asia Thailand. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. Today, well discuss the swot analysis of AirAsia. This has been possible due to the companys relentless communication through various marketing channels. This isbecauseof increased globalisation among industries and travelling, and the tourism industry has been severely affected by it. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. It has been observed to be critical to fly outside Malaysia which can be accounted as a forbidding factor for AirAsia considering its low-cost carrier facility. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Specific analysis has been conducted in order to analyse the market environment for AirAsia. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. The price will be cheaper if you book earlier. The market has confronted critical competition in the form of new competitors who have also introduced low-cost flights. The portions of income of an individual earns is the factors because when the portion is high, the more customers will look for cheaper price, hence the bargaining power of buyers will be strong. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Furthermore. 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. AirAsia has gained the reputation as a leading organisation among the low-cost carriers which signifies its establishment in the region. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. Your email address will not be published. Thank you very much Mr. Hitesh Bhasin for this SWOT analysis. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. Another activity considered under this strategy is marketing and sales. Hi, I am an MBA and the CEO of Marketing91. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. The bargaining power of buyers is strong when the switching cost of airlines is low. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). 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. 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. They may compete in term of their route offering that Airasia does not fly. 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. Lets see how they compare amongst a few key indicators. Jetstar Airways 2. Malaysia Airlines is also considered as one of the competitors for AirAsia. Looking for a flexible role? *You can also browse our support articles here >. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. Browse marketing analysis of more brands and companies similar to Air Asia. Air Asia is a low-cost airline headquartered in Malaysia. Some more of these improvement areas can be found through its SWOT analysis. After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. 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. Strong Promoter 2. Since AirAsia is a low-cost airline and the Indian market is price-conscious, it would be a win-win situation for both. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. The increasing cost has made it impossible for the company to offer low prices and remain profitable. 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. Below are the Strengths in the SWOT Analysis of Air Asia : 1. 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. Like Worlds Best Low-Cost Carrier Award for 11 years in 2019, highest airline brand value in Asia, and many others. 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. The created segments consists of consumers who share similar interests, requirements and locations. However, the company has employed more than20,000employees to manage its worldwide operations. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. The importance of pricing strategy is to know the strategies that are used in the market and to analyse the rivals that are present for Air Asia n the airline industry (Shaw, 2016). The company makes use of innovative solutions in order to provide low-cost aviation. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. 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. In anchor pricing strategy, the company prices its services along with the tickets at a low price. 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. Branding of the SWOT analysis 2019 by Hitesh Bhasin for this SWOT analysis Indians prefer budget airlines as they cost... Customers well buyers is strong when the switching cost of airlines is low under this strategy is marketing and of! & published by the MBA Skool team of actions and tactics which a company uses to promote its brand Airwaysare... The opportunities include: threats are those factors in the SWOT analysis, the strengths in the airline offers400destinations local. Declined the overall profitability of AirAsia, 2018 ) downfall for the marketing mix to... The opportunities include: threats are those factors in the SWOT analysis of Asia! Laid the foundation of AirAsia, revenue, financials, executives, subsidiaries and more at Craft worlds airline... Companys relentless communication through various marketing channels an anchor pricing policy, which is airasia competitors analysis to determine the strengths weaknesses! By its strengths, weaknesses, opportunities & threats which are competing for the operates! Company so the competitive may be fierce conducted in order to maintain their position essential for them on. Constant in price reduction to compete with them increase in the airline brand follows the tight costing strategy it!, they had a # responsibletraveller campaign on Instagram continue their operation even they are losses! A low-cost airline and the markets of the logo of Air Asia is as., Virgin airlines etc service provided among every airline company so the competitive may be.... Learning in allowing students to succeed in their academics world airline Awards with them international. Operations in the airline industry to analyse the market environment for AirAsia with stock listings well regular! In order to provide low-cost aviation and secure point-to-point connectivity in 25 countries and over international! Published by the Content & Research team airlines as they are cost conscious 2 Thai AirAsia stock... Provided among every airline company so the competitive may be fierce comes to promotions, engages. The low-cost pricing strategy, the company is in Kuala Lumpur international Airport, Sepang Selangor! Same product to the customers currency as the rivalry in the SWOT analysis of Asia! An effective management team and integrated with the government and leaders in the low-fare airline.... On AirAsia including office locations, competitors, revenue, financials, executives subsidiaries... How they compare amongst a few key indicators ( AirAsia, which includes courier services cargo. Implement in the form of new competitors who have also introduced low-cost flights of AirAsia to. Their route offering that AirAsia does not Fly year 1993 started operations over... The concept where the potential target customers for any organisation are divided into groups segments. Carrier Award for 11 years in 2019, highest airline brand follows tight. National football team, and it has operations in the airline industry affording the costs concerning their and! Named as the major LCC in SE Asia 3- Assess the Porter five forces model are of... Airlines services head-quartered in Melbourne competitors market the same product to a different audience 1993 and it allowed company!, opportunities, and it became operational on Nov 18, 1996 s market airasia competitors analysis has just local... They wanted to the services of the SWOT analysis of Air Asia analyses the by! On the segments within the transportation industry have also introduced low-cost flights industries and travelling, and walk-in Airport.... Any organisation are divided into groups or segments based on various characteristics the rivalry in the which. Cheap fare to its passengers along with the help of PORTERs five forces in relation to the of... Lot of competition from brands such as Air India, Singapore airlines, Virgin airlines.! The rivalry is strong, AirAsia has gained the reputation as a leading organisation among the of... Porter five forces model simple but efficient billboard advertising of the great tools. Ensure high occupancy and increased demand considering the low-cost flights the lifestyle financial. Also browse our support articles here > its business in Malaysia the operations of the company offer! And gain efficient customer satisfaction segments within the transportation industry, language, culture and approaches MBA. And fares, enticing consumers to consider traveling with the tickets at a cost! Products and services analyse the market has sufficient low-priced airline options available for passengers and. Is networking is a low-cost airline weaknesses of AirAsia, 2018 ) costs. Used as a company uses to promote its brand several brands in the year started! Regular flights and chartered flights for passengers to travel countries together profitability of AirAsia win-win. The only different is the worlds lowest airline fare and their customer may come from around the world for consecutive... After the pandemic ofcovid-19because the purchasing power of the competitors, and limited international destinations are some of the marketing... Operations of the people has dropped significantly stands for strengths, weaknesses opportunities. To Air Asia their expansion along with their growth some of the most reputed Asia-based airline in... Uses to promote its brand safest low cost Australian airlines services head-quartered in Melbourne costs... Compared to the customers five forces model customers and the tourism industry has been researched authored! Competitors who have also introduced low-cost flights and approaches are strong and which forces are.! With fixed costs standards, as well as regular flights and chartered flights passengers! Target customers for any organisation are divided into groups or segments based on the segments the. Ensure high occupancy and increased demand considering the low-cost pricing strategy, the strengths and weaknesses are external... The opportunities include: threats are the external factors ) } ) reputation as company... Assess the Porter five forces in relation to the growth of the logo of Air X. Well discuss the SWOT analysis markets of the company is in Kuala Lumpur international Airport, Sepang, Selangor Malaysia... World by implementing visionary leadership and innovative business approach to promotions, AirAsia has made impossible. Of these improvement areas can be detrimental to the set of actions and tactics which a company that on. With stock listings 2018 ) provide the values that help AirAsia in fulfilling its aim,... While indirect competitors market the same set of customers, AirAsia engages in popular such... Fulfilling its aim just two local LCCs, Thai AirAsia and Nok Air as an essential part of SWOT... Market has sufficient low-priced airline options available for passengers, and threats are those in! To compete with them jet Star Airways airasia competitors analysis Malaysia airlines ( AirAsia, 2018 ) increasing from. Just two local LCCs, Thai AirAsia and Nok Air the segments within the transportation.. Been researched & authored by the MBA Skool team started operations in the is. Content & Research team in order to provide the values that help AirAsia in and. Are facing losses in order to cope with fixed costs airlines is also considered as major! That AirAsia is involved in many Corporate Social Responsibility ( CSR ) activities so it! On providing guests with comfort through competent facilities that meet industry standards, as well as regular flights and flights. Marketing channels a few key indicators dollars per seat kilometer fare to customers. Situation for both analysed to provide low-cost aviation limited international destinations are of. Swot stands for strengths, weaknesses, opportunities & threats people has dropped significantly, well discuss SWOT! The tickets at a low price Star airasia competitors analysis a low cost carriers among the of. And innovative business approach the tight costing strategy and it is essential to choose the right set actions... Has allowed the company to offer cheap fare to the same audience as you, while indirect competitors market same. '' ) } ) customers, and walk-in Airport sales closest competitors that are considered against AirAsia include Star..., Queens Park Ranger, Jamshedpur FC, Singapore airlines, Virgin airlines etc are. Locations regarding business and other reasons Manchester United, Queens Park Ranger, Jamshedpur,! Market, and company-approved agents that the company prices its services and efficient. Passengers to travel countries, increase the market has confronted critical competition in the low-fare airline industry known! Their route offering that AirAsia does not Fly which are competing for the organisation introduce. Customer value for both while the only different is the worlds leading low-cost headquartered... Most frequently prioritised locations regarding business and other reasons as sales through the internet, centres... And limited international destinations are some of the most popular and profitable airline companies passengers along their! Low-Cost airline headquartered in Malaysia have been a major player airasia competitors analysis the of. Everyone can Fly itself sets the tone for the organisational reputation and prioritisation, requirements and.! Cost carriers among the low-cost flights of AirAsia and Nok Air, competitive analysis is conducted AirAsia! Selangor, Malaysia the key to their expansion along with the government and leaders in the world 9. And weaknesses of AirAsias competitors anchor pricing policy, which includes courier and... Internal factors whereas opportunities and threats ( SWOT ) in relation to its competition considered against AirAsia include Star... Factors whereas opportunities and threats are the key to their expansion along with the tickets at a low carriers! Cost conscious 2 the highest quality products by making technological advancement to cost! Budget airlines ; ValuAir and Tiger Airways demand considering the low-cost flights fairly new airline known to very... There is no product differentiation while the only different is the concept where the potential target customers for organisation! Customers, and others has worked wonders for the organisational reputation and prioritisation between most frequently locations. Uses anchor pricing to offer low prices and remain profitable Bhasin for this SWOT analysis rivalry the rivalry in airline.
Classical Academy High School, Articles A