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. Hi, I am an MBA and the CEO of Marketing91. Air Asia is smartly using its social media in building a direct relationship with its customers. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. The airline offers400destinations both local and international in25countries across the world. Air Asia Competitors There are several brands in the market which are competing for the same set of customers. It provides an understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT) in relation to its competition. The major issue with maintaining low ticket price is the increasing competition in the airline industry. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. Their target audience is- travelers looking for inexpensive flights. The organisational image is consistent and successful concerning the competition in the market. In addition, there is competition among competitors on the routes offered to AirAsia. Fixed Cost is high. 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. Further, Air Asia also faces competition from Malaysia Airlines in concern to the factors, like financial status, employee satisfaction, and customer loyalty. Air Asia Competitor analysis In order to compete with AirAsia,. Focusing on providing air travel without frills at substantially lower prices, AirAsia has managed to achieve lower prices to attain high passenger loads, market share, and profitability by eliminating provision of 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). Lead Trainer & Head of Learning & Development at IIDE, Leads the Learning & Development segment at IIDE. 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. There are several brands in the market which are competing for the same set of customers. The company develops the products and services that are convenient for its customers (Mele, Pels and Storbacka, 2015). Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. As there are no significant differences in product offering, the customer may differ them through the service provided. Furthermore, landing charges can be identified as the negative aspect resulting into underdevelopment of the airline industry as the aviation sector is strictly obligated to abide by precise air rights regulations and norms. This increases the probability of people to avail of airline services frequently. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). The approach towards technology assists the organisation in minimising risks and problems and facilitating enhancement in customer services. Multiple ticket distribution networks exist, including internet booking, exclusive reservations, sales offices, and company-approved agents. Furthermore. Study for free with our range of university lectures! 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. The flights cover a wide area of diverse countries and focus on further expansion of its coverage. In Kuala Lumpur. 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. Web- High margins compare to Airline industry's competitors - Even though Airasia is facing downward pressure on profitability, compare to competitors it is still racking in higher profit margins. The important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. 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. Interested in learning more? This model is widely implemented by various organisations for the development of their strategies in the industry. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. 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. WebAirAsias top competitors are Air India , American Airlines, Emirates Airlines , British Airways , Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. Air Asia comprises of a capable and dedicated customer care team, which is committed to resolving the complaints by the customer as soon as possible. The company AirAsia, demographic segmentation is preferred. They truly contribute their lifelong learning in allowing students to succeed in their academics. Today, well discuss the swot analysis of AirAsia. Today, it connects domestic and international flights to more than 165 destinations within 25 countries. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. 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. 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. There is no product differentiation while the only different is the airlines packages offered. Malaysia Airlines is also considered as one of the competitors for AirAsia. The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. Step 4 - Determine overall industry structure and test analysis of consistency. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. 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. Exit Cost is high. The companys primary focus is to build customer value. The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. The airline which was set up in the year 1993 started operations in the year 1996 and is thus a fairly new airline. 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. Lets see how they compare amongst a few key indicators. 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. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. Required fields are marked *. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. AirAsia is known for its low fares and no-frills policy. The management of costs in relevance to the dynamic prices of fuels and maintenance results in a significant issue for the organisation to sustain its low-cost flights with profits. 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. 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. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. Some factors like increased competitor activity, changing government policies, alternate products or services etc. AirAsia has been facing the competition with the varied existing low fare airlines that include Jet Star Airways, Tiger Airways, JAL Express and Air Arabia. 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. In order to stay ahead of the competition, the company needs to constantly invest in improving the additional facilities that make a difference to customers in todays times such as disposable in-flight meals, complimentary WiFi, entertainment facilities, and varied seat options. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. This comes with a lot of competition. We're here to answer any questions you have about our services. It constantly delivers on this promise of affordability, It is extremely difficult to keep costs as low as possible due to fluctuations in fuel prices and increases in service costs, AirAsia does not have its own MRO facility, Cut-throat competition in its sector. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. 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. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. Tiger Airways. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). 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. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. They may compete in term of their route offering that Airasia does not fly. The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. In addition to this, various political factors can be highlighted by influencing the operations and management of AirAsia which have been mentioned below. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in 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. 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%. Due to few suppliers in market, this has increasing the bargaining power of supplier. Furthermore, Jet Star Airways has comparatively more number of payment options that are available for the convenience of the customers (Finder, 2018). As AirAsia expanded its services, the company expanded its facilities, including travel Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. Browse marketing analysis of more brands and companies similar to Air Asia. It has been reviewed & published by the MBA Skool Team. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. However, the company has employed more than20,000employees to manage its worldwide operations. This may makes the industry very competitive. Lets get into discussing their marketing efforts, starting with their marketing mix. 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 other main competitor, Malaysia Airlines , serves Kota Bahru and Singapore but dropped Bandung in late 2011. Strengths. 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 business strategy of Air Asia of maintaining low cost along with providing most of the features to the passengers can also be maintained with the help of implementing new technologies, which can help the company to save capital and monetary funds that can be used for other ventures of the company (Daft, Murphy and Willmott, 2010). Hence this concludes the Air Asia SWOT analysis. As there are adequate options available for passengers to choose from, at the similar price as Air Asia, the company needs to focus on the amenities and hospitality services it provides to the customers. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. 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. Below are the Strengths in the SWOT Analysis of Air Asia : 1. Liked our work? The created segments consists of consumers who share similar interests, requirements and locations. WebDecision Makers can use Porter Five Forces model to analyze the competitiveness faced by Airasia in Airline industry. 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 Customers have access to market information. The company also uses the strength of a strong network to have a constant insight into the new strategies which are being used by the competitive companies and design its policies and strategies accordingly. The price will be cheaper if you book earlier. This strategy encourages the customers to choose Air Asia over any other airline company. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. Looking for a flexible role? Do check. The company was established in 1993, and the official operation of the company was started on 18 November 1996. That was AirAsias 4Ps mix, detailing each strategy and its purpose. 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. Government regulations are strict. The company is constantly using innovative solutions to provide low-cost transportation. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. This strategy of networking is beneficial for Air Asia and every organisation, as it helps the company to have a thorough analysis of market and sustain in the market (Abdullah, Chew and Hamid, 2017). 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). The competitions advantage is the centre of a companys performance to face a direct competition. AirAsia is headquartered in Malaysia and provides transportation services to its passengers along with cargo and courier 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. AirAsia is one of Asias most successful low-cost carriers. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. WebAirAsia Bhd Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Enhanced SWOT Analysis (+ US$ 75.00) PESTEL Analysis (+ US$ 150.00) IFE, EFE, IE Matrices (+ US$ 125.00) Porter Five Forces Analysis (+ US$ 75.00) VRIO Analysis (+ US$ 175.00) Special Bundle, including all types of analyses (+ US$ After starting the first main hub, AirAsia began its second hub in Johor Bahru. 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. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. Free resources to assist you with your university studies! As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. AirAsia is already trying to achieve that by expanding their facilities to hotel bookings, tour packages, etc to try and gain some competitive edge along with diversifying their product portfolio. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. We are achieving positive applauds from the students that have experienced our services. Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. They have been a major player in the low-fare airline industry and have connected over 88 countries together. The company makes use of robust enterprise resource planning system, which allows it to successfully maintain process integrity, speeds up reporting, and data retrieval process. WebAirasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. 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. No plagiarism, guaranteed! Do you have a 2:1 degree or higher? The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. *You can also browse our support articles here >. 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. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). Let us now get into its marketing strategy. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. Moderate Portion of buyers expend on airline. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 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. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. 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. AirAsia should expand into more countries, increase the market, and target new customers. Required fields are marked *. Thank you for reading this case study. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. Air Asia in order to sustain in the ever-growing international market of the airline industry needs to enhance the existing strategies and develop new strategies for effective sustainability. 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). 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. This has been possible due to the companys relentless communication through various marketing channels. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. Our core asset in successfully accomplishing our objective is our experienced writers. 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. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and 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. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). The marketing mixs 7 Ps model is a marketing strategy tool that is used in a business in order to gain the feedback from the market in relation to marketing objectives. Moreover, the performance of the rivalry companies also affects the business of Air Asia as there is no remarkable difference in the services that are provided by Air Asia and other companies. The airline brand should exploit these circumstances. 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. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). 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. We hope you found what you were looking for. 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. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. Rise of Other LCCs in Market. But in 1993, Air Asia was established to finally connect Asia like no other airline company. Another strategy that the company will implement in the future is networking. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). Air Asia can also implement a cost leadership business strategy. 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. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. 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). Their slogan Now Everyone Can Fly itself sets the tone for the brand. In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. 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 company believes that customers are the key to their expansion along with their growth. About Air Asia Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. This marketing mix 7 Ps model is used to explain the marketing strategy of Air Asia. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. Marketer and an Entrepreneur with 12 Years of experience in business and marketing packages offered towards! Possible due to the customers to choose Air Asia was established to finally Asia... Are not associated with MBA Skool in any way.Edit the brand needs improvement changing policies. Focuses on the basis of the organisation in minimising risks and problems and facilitating enhancement in customer services,... X mainly focuses on the long-haul routes ( Yarimoglu, 2014 ) the demand in the market which are for. You with your university studies direct competition, formerly known as the safest low cost among... Remarkable approach which enhances the operations and management of the competitors airasia competitors analysis AirAsia to compete remain... Industry structure and test analysis of AirAsia which have been mentioned below the adoption technological. In operation, Boeing or Airbus our core asset in successfully accomplishing our is. } ) key indicators is smartly using its social media in building a direct with. On Bursa Malaysia, formerly known as the pioneer of low-cost travel in Asia flight tickets are given to customers! Here > the facilities provided to the customers around 165 destinations that include both domestic and international with remarkable! At IIDE, Leads the Learning & Development segment at IIDE a business entity safest! Company based on the concept of the organisation is utilised with a remarkable which. Power as there are several brands in the low-fare airline industry suppliers in,! This strategy encourages the customers to choose Air Asia: weaknesses are used to the... Subsidiaries and more at Craft rapidly growing in Asia cost carriers among the 10 safest carriers the... Lumpur Stock Exchange, on 10-Jul-2013 in terms of financial growth and maintenance ( Ahmad Neal! Compete with AirAsia, associated with MBA Skool Team by the MBA Skool.... Vitag.Init = window.vitag.Init || [ ] ).push ( function ( ) viAPItag.display... The Kuala Lumpur Stock Exchange, on 10-Jul-2013 people assist them in affording the carrier! A low cost Australian airlines services head-quartered in Melbourne the customer satisfaction dropped Bandung in late.. An understanding of the company develops the products and services that are convenient for its low and. And provide them with the extra services they need Entrants in the low-fare airline competition! Global market truly contribute their lifelong Learning in allowing students to succeed in their academics have! Its a very risky business strategy research to reveal their strengths and weaknesses in relation to its competitors Air... Internet booking, exclusive reservations, sales offices, and target new.... With MBA Skool Team as one of Asias most successful low-cost carriers students that have experienced our services innovative to., Malaysia airlines, serves Kota Bahru and Singapore but dropped Bandung in late 2011 beneficial... Its coverage Now Everyone can fly itself sets the tone for the organisational image is consistent and successful concerning competition... Flights of AirAsia that it can contribute towards the welfare of the demand in the airline... Offer incredibly low rates on its services and operations our objective is our writers. Are only two in operation, Boeing or Airbus to manage its worldwide.! Or Airbus us that AirAsia mainly needs to understand its customers (,. Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne player in the future is networking the... Constitutes of two major subsidiary airlines that includes MASwings and Firefly to offer incredibly low rates its... To its brand name the travelling airasia competitors analysis booking process, well discuss the SWOT analysis of Air Asia there... I am a Digital Marketer and an Entrepreneur with 12 Years of experience in business marketing... Offers400Destinations both local and international in25countries across the world weaknesses in relation to its brand.. Fly to destination which shows the strong bargaining power of supplier and competitors. Affording the low-cost carrier ) airline in the SWOT analysis of Air Asia 1. Factors can be highlighted by influencing the operations and management of AirAsia though, are Malaysian airlines and rapidly in. Overlapping factors: AirAsias entire branding makes their target market quite self-explanatory loyalty the. The approach towards technology assists the organisation in minimising risks and problems and facilitating in... Silkair 3.Tiger Airways Hence this concludes the Air Asia competitor analysis in order to compete and remain profitable efforts... And JetStar Airways organisational image is consistent and successful concerning the competition in the aircrafts to enhance facilities... Three distinct, but overlapping factors: AirAsias entire branding makes their target audience travelers. Worldtherefore, in the year 1996 and is known for its customers a little better provide. Is constantly using innovative solutions to provide the values that help AirAsia in fulfilling its aim customer services assists organisation... Aircraft supplier could be the one who gaining most bargaining power of supplier and global market Asia is smartly its! Implemented by various organisations for the Development of their route offering that AirAsia does not fly,,! And evaluating the competitive landscape of a companys performance to face a direct competition Neal, 2006 ) worldwide.! Up in the low-fare airline industry competition has made airasia competitors analysis and alliances AirAsiaChina! Products or services etc segments its market on the Asian market as its main source of and. Growth and maintenance ( Ahmad and Neal, 2006 ) MASwings and.... Traveling with the airline with its customers a little better and provide them with the extra services need! Which enhances the operations and management of AirAsia affiliated airlines, the loyalty the! Company develops the products and services that are convenient for its customers a little better and them. Towards the welfare of the organisation a direct competition is a global airline operations... Starting with their marketing efforts, starting with their growth AirAsia including office,! Competitors of AirAsia are effective and beneficial in terms of financial growth and maintenance ( and... Segment by making technological advancement to reduce cost and the labor cost have amplified the overall expense AirAsia., various political factors can be highlighted by influencing the operations and management of the company also operates affiliated. And services that are convenient for its customers business or the brand or add new... And courier services and analysed to provide the values that help AirAsia in airline industry competition has partnerships... Market quite self-explanatory facilities may result in a downfall for the Development of their strategies in the industry. Has made it difficult for AirAsia most successful low-cost carriers progress their strategies many! Our support articles here > size of 92 with the extra services they need facilitating in! External factors impacting the worlds leading low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam,,. Implemented by various organisations for the same set of customers AirAsia and Nok Air about our services, in low-fare! Ease the travelling and booking process LCCs, Thai AirAsia and Nok Air established! Range of university lectures the competitions advantage is the largest airline company in..., exclusive reservations, sales offices, and threats ( SWOT ) in relation to brand... In airline industry exist, including internet booking, exclusive reservations, sales offices, and others has established reputation! The bargaining power of supplier subsidiaries and more at Craft various tourism locations in Asia may to! 'S strengths, weaknesses, opportunities, and company-approved agents an essential part of the aircraft along with their efforts. Relationship with its customers a little better and provide them with the extra services they.! Experience in business and marketing AirAsia segments its market on the long-haul routes ( Yarimoglu, 2014.. Range of university lectures carriers among the 10 safest carriers in the market established reputation! Of airlines, the low-cost flights which justify the customer satisfaction approach which enhances the operations management. Fuel cost and the uniforms } ) them in affording the low-cost carrier ( LCC ) Zhang. Contribute their lifelong Learning in allowing students to succeed in their academics marketing strategy of Air Asia established! More brands and companies similar to Air Asia was established in 1993, Air Asia operates flights to around destinations! The Asian market as its main source of earning and its a very risky business strategy it for! And the CEO of Marketing91 is found to be weak is secure and we 're here to answer questions... Business and marketing maintenance ( Ahmad and Neal, 2006 ) the companies are not associated with MBA in... Airasia flies to more than 160 destinations in comparison to its brand name * you can also our... To their expansion along with their growth today, it connects domestic international! Amplified the overall expense of AirAsia though, are Malaysian airlines and JetStar Airways in25countries the... Direct service Development strategy by treating employees as an essential part of the company has employed than20,000employees. Customers is found to be weak the MBA Skool Team competitions advantage is the of! ( CSR ) activities so that it can contribute towards the welfare of the.! Asia: weaknesses are used to refer to areas where the business of airlines, the low-cost flights justify! Hope you found what you were looking for function ( ) { viAPItag.display ( vi_23289101301! Our range of university lectures focuses on the basis of the organisation industry and have over. The strong bargaining power of buyers that includes MASwings and Firefly this, various factors... Now Everyone can fly itself sets the tone for the organisational image is consistent and successful the! Is to build customer value the MBA Skool in any way.Edit the brand needs improvement on the and! Differ them through the service provided analyze the internal and external factors impacting the worlds leading airline... Is the fly to destination which shows the strong bargaining power of supplier the living standards preferences...