It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. 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. Air Asia Competitors There are several brands in the market which are competing for the same set of customers. As there are no significant differences in product offering, the customer may differ them through the service provided. The cost may include staff retrenchment fee, paying off the loan or debts and refunds due to flight cancellation so it may expensive for an airline company to leaving the industry. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). DRB-HICOM, a government conglomerate laid the foundation of AirAsia in 1993 and it became operational on Nov 18, 1996. 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. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. 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. Home Samples Marketing Environment Analysis of Air Asia. After starting the first main hub, AirAsia began its second hub in Johor Bahru. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. Malindo will compete against AirAsia on all three routes. 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 The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. 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 has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. 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. Use Slintel to connect with top decision-makers at AirAsia. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. It has operations in over 25 countries and over 400 international and national destinations, 4. Customers have access to market information. The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. 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. Lets take a look at AirAsias marketing mix. WebAnalysis for Cost Leadership Strategy and Core. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. The company makes use of innovative solutions in order to provide low-cost aviation. 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. 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. Your topic helped a lot, Your email address will not be published. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. Required fields are marked *. Lets see how they compare amongst a few key indicators. 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. Supplier concentration in a few hands. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. Webprice wars with competitors, taxes and duty imposed on the firms products. The bargaining power of buyers is strong when the switching cost of airlines is low. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. The competition will be fiercer if there is high number of competitor, this is a normal phenomenon. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). A recipient of numerous awards Air Asia has been consecutively designated as the leading low-cost carrier in the Asian region. 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. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. In order to establish a new airlines company, high amount of capital along with risk-bearing capabilities and monetary funds to cope up with the challenges faced while sustaining in the airline industryare required. Thank you for reading this case study. 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). Has Positioned itself as the major LCC in SE Asia. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. However, there is also a barrier to the establishment of the new entrant in the airlines, which is the high start-up cost that is required for the airline services. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines However, the company has employed more than20,000employees to manage its worldwide operations. Other than that, hes a fun loving person. 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. Their target audience is- travelers looking for inexpensive flights. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. They may compete in term of their route offering that Airasia does not fly. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. Like Worlds Best Low-Cost Carrier Award for 11 years in 2019, highest airline brand value in Asia, and many others. This may makes the industry very competitive. 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. 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. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). 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. AirAsia Airline As the best low-cost passenger. Interested in learning more? Required fields are marked *. 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. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. Continue reading more about the brand/company. Following are the opportunities in Air Asia SWOT Analysis: 1. Diversified in product offered. High numbers of Competitor. 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. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. 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). The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. 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 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. In addition, there is competition among competitors on the routes offered to AirAsia. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. No plagiarism, guaranteed! The opportunities for any brand can include areas of improvement to increase its business. 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). 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