The Indian market is highly price-conscious. Liked our work? 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. *You can also browse our support articles here >. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. 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 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. The approach towards providing the lowest costs results into a low opportunity for gaining significant profits as the company abides by its approach of maintaining lowest flight costs. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. Some more of these improvement areas can be found through its SWOT analysis. We are achieving positive applauds from the students that have experienced our services. Porters five force analysis for Air Asia is as under: Bargaining power of Supplier Analysis of the bargaining power of suppliers is crucial for any organisation, as with the help of this, an organisation manages the capital and makes decisions regarding financial management (Thomas and Housden, 2017). When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. Basic things to know before seeking help in assignment. Rising Fuel Costs 2. 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). Jetstar Airways 2. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. Ease to switching. 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. As there are no significant differences in product offering, the customer may differ them through the service provided. Air Asia Competitors There are several brands in the market which are competing for the same set of customers. WebCompare AirAsia against competitors. The basic product strategy in its marketing mix is its low-cost air services. Furthermore, Jet Star Airways has comparatively more number of payment options that are available for the convenience of the customers (Finder, 2018). The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). 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. 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 has outsourced its maintenance and repairing facility as it does not possess in such facilities. The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. The introduction of ASEAN open skies policy facilitates opportunities for expansion and generalised airline regulations among the south-east countries of Asia which would benefit 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. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. Air Asia is known for treating its employees and customers well. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. 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. Their target audience is- travelers looking for inexpensive flights. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. 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. Switching Cost is low. 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. Specific analysis has been conducted in order to analyse the market environment for AirAsia. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). 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. Your email address will not be published. Lets understand AirAsias competitors better with analysis. The threats for any business can be factors which can negatively impact its business. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). Competitiveness Points of Air Asia. AirAsias positioning is very clear in being low-cost. Do check. Use fundamental and technical analysis of AirAsia Group and its peers Please click here if you are not redirected within a few seconds. AirAsia uses various media platforms for the marketing and promotion of its products and services. This article has been researched & authored by the Content & Research Team. 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. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. AirAsia is a Malaysian low cost and no-frills airline company, which has a unique slogan stated as Now Everyone Can Fly. AirAsia adopted the Computer Reservation System (CRS), which enabled it to introduce the first-ever ticket-less travel facility and also provides features such as advanced boarding passes and online ticket booking. 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. Do check out our Free Digital Marketing Masterclass by Karan Shah. Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. This results in significant reduction in the cost as the commission fee paid to travel agents are saved and can be used to maintain the facilities and services of the company (Pinto et al., 2015). Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. Today, well discuss the swot analysis of AirAsia. This has been possible due to the companys relentless communication through various marketing channels. 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 company develops the products and services that are convenient for its customers (Mele, Pels and Storbacka, 2015). AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines Do essay writing needs professional writers? SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. Government regulations are strict. They have a vast network of operations around the world, flying domestically and internationally. 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. 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. 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. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. The company was established in 1993, and the official operation of the company was started on 18 November 1996. Strengths. Low switching costs. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. 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. The opportunities for any brand can include areas of improvement to increase its business. This strategy encourages the customers to choose Air Asia over any other airline company. The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. 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. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. 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. Use Slintel to connect with top decision-makers at AirAsia. Sponsorship is also one of the great marketing tools. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. The organisational image is consistent and successful concerning the competition in the market. 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. The acronym refers to political, economic, social and technological factors. Disclaimer: The reference paper provided by Student Life Saviour should be used as a model paper, and are not intended to be submitted to the universities. Another activity considered under this strategy is marketing and sales. Human resource management undergoes significant political pressure as the recruitment process of AirAsia is focussed on the racial determination of the applicants rather than their merits. Lets see how they compare amongst a few key indicators. Worked wonders for the company is lacking or in which the competitors better. Organisational image is consistent and successful concerning the competition in the market for. Promotions, AirAsia has made a name for itself as a company that focuses on consumer. Known for treating its employees and customers well significant differences in product offering, the customer may to... 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