As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. The company believes that customers are the key to their expansion along with their growth. 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. Continue reading more about the brand/company. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. The largest airline in Malaysia the business is known to be highly employee centric. Similarity in product offering. Required fields are marked *. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. This has been possible due to the companys relentless communication through various marketing channels. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. AirAsias positioning is very clear in being low-cost. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. It has operations in over 25 countries and over 400 international and national destinations, 4. Some more of these improvement areas can be found through its SWOT analysis. This article has been researched & authored by the Content & Research Team. Air India to discontinue Vistara after merger, DS Group Partners with Lderach (Swiss Chocolate Maker), Castrols unveils a New Logo and a Refreshed Brand Identity. 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. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. 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. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. The airline offers400destinations both local and international in25countries across the world. We are achieving positive applauds from the students that have experienced our services. Back in the 1900s Thai National Airlines was the only airline that could fly in the main routes of Bangkok Chiang Mai with non-stop flights. The organisational image is consistent and successful concerning the competition in the market. 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. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. Rising Labour Costs 3. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). AirAsia is one of Asias most successful low-cost carriers. The other supplier such as fuel supplier, merchandise supplier, or food supplier may be depend on market condition. Here are the weaknesses in the Air Asia SWOT Analysis: 1.Not on too many routes as compared to market leaders 2.Stiff competition in its sector. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. 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. 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). 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. The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. 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 has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in The competition will be fiercer if there is high number of competitor, this is a normal phenomenon. 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. It constantly delivers on this promise of affordability, It is extremely difficult to keep costs as low as possible due to fluctuations in fuel prices and increases in service costs, AirAsia does not have its own MRO facility, Cut-throat competition in its sector. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. 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. AirAsia is known for its low fares and no-frills policy. This is due to Airbus is a UK based aviation company and their customer may come from around the world. The market has confronted critical competition in the form of new competitors who have also introduced low-cost flights. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Well established LCC operating out of South East Asia, 3. AirAsia is a low-cost multinational Malaysian airline. This has raised the threat of substitution for Air Asia, as in any case of customer dissatisfaction or unavailability of service, it will be easy for the passengers to shift to some other airline company. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. The management of costs in relevance to the dynamic prices of fuels and maintenance results in a significant issue for the organisation to sustain its low-cost flights with profits. In anchor pricing strategy, the company prices its services along with the tickets at a low price. Browse marketing analysis of more brands and companies similar to Air Asia. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. The price will be cheaper if you book earlier. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Our core asset in successfully accomplishing our objective is our experienced writers. As AirAsia expanded its services, the company expanded its facilities, including travel It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. Strong Promoter 2. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. Just over 790 million shares were sold, including 592.6 million new shares, at MYR1.25 per share (USD39 cents), making it the largest IPO in Malaysia The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. But the company is only operating its business only in 25 countries. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. Liked our work? AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. High numbers of Competitor. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. Another strategy that the company will implement in the future is networking. Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. Moderate Portion of buyers expend on airline. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. 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 company engages in anchor pricing strategy in its marketing mix. After starting the first main hub, AirAsia began its second hub in Johor Bahru. For example, they had a #responsibletraveller campaign on Instagram. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of Today, well discuss the swot analysis of AirAsia. Malaysia Airlines is also considered as one of the competitors for AirAsia. The companys primary focus is to build customer value. WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. Many airline companies have entered the airline industry and they have made the market very competitive. 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. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. Lets get into discussing their marketing efforts, starting with their marketing mix. 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. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. The Indian market is highly price-conscious. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. The increasing cost, competitors, and limited international destinations are some of the main challenges. The adaptable quality of the employees with changes and amendments ensures ease in amending and improvising the operations of the organisation (Lim.
Joseph Simon Araneta Marcos Height,
Daytona Beach Mugshots Search,
Sipesville Fire Department,
Smk G2005 Repeater,
Millennium Stadium Worst Seats,
Articles A