The increasing cost, competitors, and limited international destinations are some of the main challenges. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. 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. AirAsia Airline As the best low-cost passenger. Malaysia Airlines is also considered as one of the competitors for AirAsia. 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. As reported in The Edge Markets in 2019, Khazanahs managing director Datuk Shahril Redza Ridzuan claimed that the airlines CASK was only 15 per cent to 20 per cent higher than AirAsia and was in fact lower than regional airlines such as Singapore Airlines, Thai Airways and Cathay Pacific. 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. Switching Cost is low. Some factors like increased competitor activity, changing government policies, alternate products or services etc. In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. Rising Fuel Costs 2. But in 1993, Air Asia was established to finally connect Asia like no other airline company. Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. Step 4 - Determine overall industry structure and test analysis of consistency. Relative insignificant influence of buyer to supplier. In contrast to this, Jet Star Airways has more types of planes that are provided to its customers that includes A320, Bombardier Q300, A321 and Boeing 787 Dream Liner; whereas AirAsia offers only two types of planes to its customers, which are A330 and A320. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. Some of the threats include: If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. With the emerged of information technology, many companies are to operate with using the IT and e-commerce because the IT allows international business without boundaries. Required fields are marked *. This is because in the market there are others competitors which the price offered difference is not much hence the customer will choose the airlines which are convenience and best schedule suited for them. Below are the top 3 competitors of Air Asia: 1. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. 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. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. 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. It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. 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. Your email address will not be published. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. Air Asia is known for treating its employees and customers well. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. 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$ The company also engages in direct service development strategy by treating employees as an essential part of the organisation. Do check out our Free Digital Marketing Masterclass by Karan Shah. The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. The company was established in 1993, and the official operation of the company was started on 18 November 1996. Required fields are marked *. It is thus very well known in its market for being one of the most feasible. The competition will be fiercer if there is high number of competitor, this is a normal phenomenon. 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). AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. 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. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. However, the company has employed more than20,000employees to manage its worldwide operations. Diversified in product offered. They have been a major player in the low-fare airline industry and have connected over 88 countries together. The company believes that customers are the key to their expansion along with their growth. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. This may makes the industry very competitive. Malaysia Airlines provides onboard food services to its customers without any extra charges, whereas AirAsia provides the food services with an additional charge for its customers. 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. Thank you very much Mr. Hitesh Bhasin for this SWOT analysis. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. 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. 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 understand AirAsias competitors better with analysis. 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. Performance of rivalry. Webprice wars with competitors, taxes and duty imposed on the firms products. Quizzes test your expertise in business and Skill tests evaluate your management traits. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. Hence, customer may access to the current airlines information which are available at all time, this has reduced the power of negotiation for airlines and producing a strong customers bargaining power. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. 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. It must have a good relation with hotels and tourism companies around Asia. The created segments consists of consumers who share similar interests, requirements and locations. Home Samples Marketing Environment Analysis of Air Asia. As AirAsia expanded its services, the company expanded its facilities, including travel 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. 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. The case involves the Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. Continue reading more about the brand/company. Continue reading more about the brand/company. This increases the probability of people to avail of airline services frequently. That was AirAsias 4Ps mix, detailing each strategy and its purpose. 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. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. Another strategy that the company will implement in the future is networking. Lets get into discussing their marketing efforts, starting with their marketing mix. 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? Hi, I am an MBA and the CEO of Marketing91. It has operations in over 25 countries and over 400 international and national destinations, 4. 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. WebThe two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Lets see how they compare amongst a few key indicators. The approach towards technology assists the organisation in minimising risks and problems and facilitating enhancement in customer services. Your topic helped a lot, Your email address will not be published. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. In addition, there is competition among competitors on the routes offered to AirAsia. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. 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