AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. Government regulations are strict. 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%. That was AirAsias 4Ps mix, detailing each strategy and its purpose. 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. Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. Best regards from Kazakhstan.My name is Ainash. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. 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. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. Some more of these improvement areas can be found through its SWOT analysis. The airline which was set up in the year 1993 started operations in the year 1996 and is thus a fairly new airline. Jetstar Airways 2. Performance of rivalry. No plagiarism, guaranteed! AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. The airline brand should exploit these circumstances. Hi, I am an MBA and the CEO of Marketing91. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. 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. Use Slintel to connect with top decision-makers at AirAsia. 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. Lets understand AirAsias competitors better with analysis. 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. AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. The increasing cost has made it impossible for the company to offer low prices and remain profitable. Low switching costs. Air Asia also engages itself in the promotion of the company through social media, print advertisements, and effective billboard advertising (Mele, Pels and Storbacka, 2015). Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. There are several brands in the market which are competing for the same set of customers. Hence this concludes the Air Asia SWOT analysis. The price offer by an airline company may not be fixed but it will depend on the time differences between the date of booking and flight. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. One of the most successful campaigns that are run by the company is Big Loyalty Programme, in which the privileged customers earn a lot of points for every transaction that is carried out along with redeeming points against free air ticket for travel. High numbers of Competitor. 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 distribution channels for the tickets include different sources such as internet ticket booking, exclusive reservation, and sales offices along with the agents that are authorised by the company. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. The acronym refers to political, economic, social and technological factors. 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. But in 1993, Air Asia was established to finally connect Asia like no other airline company. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. Swot Analysis of AirAsia Berhad. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. 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. As the rivalry is strong, Airasia may constant in price reduction to compete with them. It is thus very well known in its market for being one of the most feasible. Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. 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. Air Asia is a low-cost airline headquartered in Malaysia. Rising Fuel Costs 2. Lets see how they compare amongst a few key indicators. AirAsia is one of Asias most successful low-cost carriers. *You can also browse our support articles here >. The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. Very interesting and informative. They should be used as a reference paper for further research. According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. 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. 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. The important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. Their slogan Now Everyone Can Fly itself sets the tone for the brand. The Indian market is highly price-conscious. 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. 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 document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Due to few suppliers in market, this has increasing the bargaining power of supplier. Your email address will not be published. Home Samples Marketing Environment Analysis of Air Asia. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. 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. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. 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: Let us now get into its marketing strategy. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. 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. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. 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. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. This pricing strategy helps the company to create a base for pricing all the operations that are carried by them. This is due to Airbus is a UK based aviation company and their customer may come from around the world. 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). AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. Thank you for reading this case study. 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). Fixed Cost is high. This strategy encourages the customers to choose Air Asia over any other airline company. 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. 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. 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