Air Asia is known for its low pricing, as well as a no frill policy. 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. Find useful insights on AirAsias company details, tech stack, news alerts, competitors and more. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. Malaysia Airlinesis a member of the oneworld airline alliance and it is also considered as the flag carrier of Malaysia which is head-quartered in Kuala Lumpur International Airport. We're here to answer any questions you have about our services. This comes with a lot of competition. Lets see how they compare amongst a few key indicators. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. The airline company has already got a subsidiary AirAsia India for the local 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. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Strong Promoter 2. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. The market has confronted critical competition in the form of new competitors who have also introduced low-cost flights. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. Interested in learning more? It is also because they are providing same service to the customer which is sent their customer to their destination by flight. This has been possible through excellent brand positioning. 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. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. Fixed Cost is high. 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. 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. Furthermore, Jet Star Airways has comparatively more number of payment options that are available for the convenience of the customers (Finder, 2018). 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. Many airline companies have entered the airline industry and they have made the market very competitive. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Air Asia is one of the leading brands in the airlines sector. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. 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. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. Low Cost Model: Low cost operations and fixed costs . We hope you found what you were looking for. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. Switching Cost is low. High numbers of Competitor. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). 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. 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. Multiple ticket distribution networks exist, including internet booking, exclusive reservations, sales offices, and company-approved agents. Below are the Strengths in the SWOT Analysis of Air Asia : 1. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. 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. AirAsias positioning is very clear in being low-cost. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. It was started in 1993, and the operations began in 1996. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. 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. The company engages in anchor pricing strategy in its marketing mix. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. Today, it connects domestic and international flights to more than 165 destinations within 25 countries. Browse marketing analysis of more brands and companies similar to Air Asia. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Specific analysis has been conducted in order to analyse the market environment for AirAsia. It has operations in over 25 countries and over 400 international and national destinations, 4. These are people ranging from those who could not afford to fly previously, to corporate business employees whose employers are looking to fly them while cutting costs. The competitions are depending on the services provided and the suitability of the flight time for the customer. 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 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). Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. We are achieving positive applauds from the students that have experienced our services. Required fields are marked *. 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). This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. Home Samples Marketing Environment Analysis of Air Asia. 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 company AirAsia, demographic segmentation is preferred. Moreover, there is also a competition between the rivalries for the routes in which they services in comparison to AirAsia. Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. Supplier concentration in a few hands. They truly contribute their lifelong learning in allowing students to succeed in their academics. 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. Ease to switching. AirAsia is a low-cost multinational Malaysian airline. 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. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. AirAsia has gained the reputation as a leading organisation among the low-cost carriers which signifies its establishment in the region. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). Lets understand AirAsias competitors better with analysis. This increases the probability of people to avail of airline services frequently. Some more of these improvement areas can be found through its SWOT analysis. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. 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. WebCompare AirAsia against competitors. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. Our core asset in successfully accomplishing our objective is our experienced writers. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. 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. Relative Price. The competitions advantage is the centre of a companys performance to face a direct competition. AirAsia has won many awards over the years. Our academic experts are ready and waiting to assist with any writing project you may have. 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. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. 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. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. Do check. Air Asia Revenue : RM 10,638 million (FY 2018) (9.6% increase YoY) RM 9,710 million (FY 2017) Competitive Analysis of Air Asia SWOT PESTLE The SWOT analysis of Air Asia is presented below: The company believes that customers are the key to their expansion along with their growth. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. 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. It must have a good relation with hotels and tourism companies around Asia. 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. 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). in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. Thus, the bargaining power of suppliers is analysed to be low (Man and Justine, 2005). Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. The company develops the products and services that are convenient for its customers (Mele, Pels and Storbacka, 2015). The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. 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. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. The Indian market is highly price-conscious. Use Slintel to connect with top decision-makers at AirAsia. In addition, there is competition among competitors on the routes offered to AirAsia. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. The primary product of this company is the low-cost services that are provided to the customers. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. That was AirAsias 4Ps mix, detailing each strategy and its purpose. 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. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. They may compete in term of their route offering that Airasia does not fly. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. Let us now get into its marketing strategy. The major issue with maintaining low ticket price is the increasing competition in the airline industry. 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