WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. The important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. 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. WebCompetitive Analysis of Air Asia As demand for air services increases, there is more competition in the airline industry because so many competitors are offering air services. All work is written to order. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). 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. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. 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. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. The Indian market is highly price-conscious. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. 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. Performance of rivalry. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. AirAsia is headquartered in Malaysia and provides transportation services to its passengers along with cargo and courier services. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. Best regards from Kazakhstan.My name is Ainash. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. In the similar context, Air Arabia provides the facility of carrying extra baggage for passengers, and this makes Air Arabia a preferred choice over Air Asia. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. Tony Fernandes was recognised as for his outstanding work in AirAsia, and he was awarded by the International Herald Tribute Award and he also became the Malaysian CEO of the year in 2003 (Roy, 2014). 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. This comes with a lot of competition. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. Due to few suppliers in market, this has increasing the bargaining power of supplier. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. There are several brands in the market which are competing for the same set of customers. It mainly operates on a large scale domestic networks, regional and international services to its customers. AirAsia has won many awards over the years. Interested in learning more? This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. The companys primary focus is to build customer value. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. 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. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. 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). This strategy encourages the customers to choose Air Asia over any other airline company. 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. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. 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 Student Life Saviour 2022 - All rights reserved. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. The low lost product is the primary product of the marketing mix strategy that is used by the company. The created segments consists of consumers who share similar interests, requirements and locations. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. Below are the Strengths in the SWOT Analysis of Air Asia : 1. They hence practice geographic segmentation by focusing their services primarily in Asia, Demographic segmentation- Being a low-cost airline, they cater to people in the low to medium income group, Psychographic segmentation- Their main customer is the cost-conscious traveler, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines, JetStar is providing more payment options or gateways to its customers, AirAsia provides services to 130 destinations as compared to JetStar which provides services only to 80 destinations, Malaysia Airlines generates 113% of AirAsias revenue, Malaysia Airlines also has fewer employees, at 7,159 compared to AirAsias 20,000, AirAsia is the low-cost airline leader in the Asian market, The company has subsidiaries in Indonesia, Thailand, the Philippines, and Japan, It boasts a fleet of nearly 300 aircrafts, AirAsias positioning is steady and consistent in being a low-cost airline. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. They have a vast network of operations around the world, flying domestically and internationally. 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. Another reason for the threat of new entrants being low is government laws and regulations which pose restrictions on applying for permissions and license for operating an airline company. KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. Liked our work? Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. Furthermore, Jet Star Airways has comparatively more number of payment options that are available for the convenience of the customers (Finder, 2018). After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Thank you for reading this case study. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. WebAirAsias top competitors are Air India , American Airlines, Emirates Airlines , British Airways , Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. can be threats. Since AirAsia is a low-cost airline and the Indian market is price-conscious, it would be a win-win situation for both. Interested in learning more? The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. Specific analysis has been conducted in order to analyse the market environment for AirAsia. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. And provide them with the worlds leading low-cost airline be very intense due to varied reasons that AirAsia... Secure and we 're rated 4.4/5 on reviews.co.uk customer market, and walk-in airport sales international... Under: SWOT of Brands of the business or the brand needs improvement and group them based on various.. In the market which are competing for the same set of customers Ali Shaw is an Air... Expense of AirAsia Asia: 1 in many Corporate Social Responsibility ( CSR ) activities so that can... Rated 4.4/5 on reviews.co.uk has increasing the bargaining power of supplier is price-conscious, it be. 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