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. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. AirAsia uses various media platforms for the marketing and promotion of its products and services. AirAsia is one of Asias most successful low-cost carriers. 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. Sponsorship is also one of the great marketing tools. According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. This has been possible through excellent brand positioning. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. Over the years Air Asia has broken the travel norms for Asian countries and is known as the pioneer of low-cost travel in Asia. Similar service provided among every airline company so the competitive may be fierce. Performance of rivalry. The competitions are depending on the services provided and the suitability of the flight time for the customer. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. Low Cost Model: Low cost operations and fixed costs . 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. The content on MBA Skool has been created for educational & academic purpose only. In addition, there is competition among competitors on the routes offered to AirAsia. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. Similarity in product offering. 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. Here are the weaknesses in the Air Asia SWOT Analysis: 1.Not on too many routes as compared to market leaders 2.Stiff competition in its sector. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. Quizzes test your expertise in business and Skill tests evaluate your management traits. This is due to Airbus is a UK based aviation company and their customer may come from around the world. Lets see how they compare amongst a few key indicators. After starting the first main hub, AirAsia began its second hub in Johor Bahru. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. The increasing cost, competitors, and limited international destinations are some of the main challenges. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. 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. As per the past experiences and the feedback of the customers, Malaysia Airlines are found to react their destinations on time in comparison to AirAsia. 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). Your topic helped a lot, Your email address will not be published. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. Home Samples Marketing Environment Analysis of Air Asia. 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. 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. Strong Promoter 2. Malindo will compete against AirAsia on all three routes. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. Some more of these improvement areas can be found through its SWOT analysis. The other supplier such as fuel supplier, merchandise supplier, or food supplier may be depend on market condition. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. Lets see how they compare amongst a few key indicators. WebThe two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Furthermore, the company wants to serve the 3 billion people who are currently out of connectivity and cannot afford high fares. Porter five forces analysis of Airasia will help in understanding and providing solution to nature & level of competition, and WebAirAsia Competitors Specify up to 10 symbols: WH REGN XHR NVO VRTX HOG IHG rprx Sophisticated investors, who have witnessed many market ups and downs, frequently But in 1993, Air Asia was established to finally connect Asia like no other airline company. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. Its routes include both domestic and international flights. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. 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. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. 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. The approach towards technology assists the organisation in minimising risks and problems and facilitating enhancement in customer services. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. Use Slintel to connect with top decision-makers at AirAsia. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. The airline offers400destinations both local and international in25countries across the world. 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. 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. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. Air Asia is one of the leading brands in the airlines sector. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. Browse marketing analysis of more brands and companies similar to Air Asia. Firstly, macro analysis has been performed with the help of PEST analysis, in which the political, economic, social and technological analysis has been conducted in correlation with AirAsia. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Below are the Strengths in the SWOT Analysis of Air Asia : 1. 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. 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. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. If you did, be sure to share, comment, and let us know! 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. Air Asia has established itself as a strong competitor in the airline industry. As AirAsia expanded its services, the company expanded its facilities, including travel 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! Liked our work? Do essay writing needs professional writers? The population of Asia is accounted to possess a massive number of middle-class individuals who can afford the airlines and opt for low-cost flights to save time and money. The first decision by the Malaysian Competition Appeal Tribunal since its inception more than four years ago caught the media and publics attention. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. The dynamic oil prices and service costs result into criticality for maintaining the low-cost flights as the organisation focuses on facilitating the most affordable costs to its customers (Daft, Murphy and Willmott, 2010). In Kuala Lumpur. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. 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. The companys primary focus is to build customer value. 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. 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. 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 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. The branding of the logo of Air Asia is essential for them. 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. Air Asia Competitor analysis In order to compete with AirAsia,. The government can be further witnessed to allow the competitors to establish hubs at locations where AirAsia is prohibited (Yashodha, 2012). Continue reading more about the brand/company. The created segments consists of consumers who share similar interests, requirements and locations. When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. 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 Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of 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. The threats for any business can be factors which can negatively impact its business. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Required fields are marked *. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. 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. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. 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. To Airbus is a trading name of business Bliss Consultants FZE, a that. 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