Required fields are marked *. Many airline companies have entered the airline industry and they have made the market very competitive. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. WebAirasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. Some more of these improvement areas can be found through its SWOT analysis. Diversified in product offered. 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. Interested in learning more? In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. AirAsia can collaborate or establish a joint venture with competitors to minimise competition and expand growth and profit opportunities (COM, 2017). Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. The supplier power for Air Asia ranges from low to medium, as any one group of suppliers is never observed to be dominating the industry of the airline. Looking for a flexible role? AirAsia should expand into more countries, increase the market, and target new customers. Student Life Saviour 2022 - All rights reserved. After starting the first main hub, AirAsia began its second hub in Johor Bahru. WebThe two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. 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. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. 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. In accordance with the increased demands, the options available for flying has also increased, and hence, the bargaining power for buyers is examined to be high for Air Asia. 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. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. The major issue with maintaining low ticket price is the increasing competition in the airline industry. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. The company engages in anchor pricing strategy in its marketing mix. Your topic helped a lot, Your email address will not be published. The bargaining power of buyers is strong when the switching cost of airlines is low. Today, well discuss the swot analysis of AirAsia. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. Your email address will not be published. WebCompare AirAsia against competitors. WebThe Competitors analysis of AirAsia Flying Low Cost with High Hopes looks at the direct and indirect competitors within the industry that it operates in. It follows vital certain strategies, which include safety first, high aircraft utilisation, streaming operations, lean distribution system and point-to-point network to amplify the working of its low-cost model (Zhang et al., 2017). It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. In the increasing demand of the airline services, there is a tough competition in the airline industry because of the varied numbers of the competitors that are providing the airline services. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. 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. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. 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 Airline As the best low-cost passenger. The organisational image is consistent and successful concerning the competition in the market. This may makes the industry very competitive. 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. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. They may compete in term of their route offering that Airasia does not fly. This has been possible through excellent brand positioning. The Indian market is highly price-conscious. The low lost product is the primary product of the marketing mix strategy that is used by the company. Furthermore. The company AirAsia, demographic segmentation is preferred. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. Air Asia is one of the leading brands in the airlines sector. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. 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 From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. Hi, I am an MBA and the CEO of Marketing91. 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. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. Continue reading more about the brand/company. AirAsia is an experienced brand in the airline industry. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. It allows its customers to choose the services they want without compromising on quality. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. Lets get into discussing their marketing efforts, starting with their marketing mix. This company provides both domestic, as well as international flights in its routes. Air Asia has established itself as a strong competitor in the airline industry. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Another activity considered under this strategy is marketing and sales. 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. Similar service provided among every airline company so the competitive may be fierce. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. Rising Fuel Costs 2. Hence this concludes the Air Asia SWOT analysis. 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. 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). 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. Performance of rivalry. Start-up Cost is high. 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. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. The other supplier such as fuel supplier, merchandise supplier, or food supplier may be depend on market condition. 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. 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). AirAsia has been a successful part of the airline industry for over a decade. The approach towards technology assists the organisation in minimising risks and problems and facilitating enhancement in customer services. Physical evidence encompasses the ways in which the company can maintain their position in the industry. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 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. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. Rising Labour Costs 3. This marketing mix 7 Ps model is used to explain the marketing strategy of Air Asia. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. All work is written to order. The largest airline in Malaysia the business is known to be highly employee centric. Other than that, hes a fun loving person. This strategy encourages the customers to choose Air Asia over any other airline company. 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. WebAnalysis for Cost Leadership Strategy and Core. The price will be cheaper if you book earlier. 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. Orient Thai previously competed as a third LCC domestically but has essentially withdrawn from this market, initially shutting its LCC brand One-Two-Go in 2008. 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. In addition to this, various political factors can be highlighted by influencing the operations and management of AirAsia which have been mentioned below. Has Positioned itself as the major LCC in SE Asia. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). Learn how your comment data is processed. Quizzes test your expertise in business and Skill tests evaluate your management traits. In Kuala Lumpur. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. 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). Browse marketing analysis of more brands and companies similar to Air Asia. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. Similarity in product offering. Swot Analysis of AirAsia Berhad. They should be used as a reference paper for further research. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines 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.
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