The competitions advantage is the centre of a companys performance to face a direct competition. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. This pricing strategy helps the company to create a base for pricing all the operations that are carried by them. Performance of rivalry. The opportunities for any brand can include areas of improvement to increase its business. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. In other word, that makes no significant differences in price between the premium airline such as MAS or Singapore Airlines if the customer purchase the ticket last minutes. 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. Knowing the increase of competition in the market, AirAsia applied the adaptation process (Hanan & Freeman, 1984) by expanding its operation to long haul services to various destinations. Many airline companies have entered the airline industry and they have made the market very competitive. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Another strategy that the company will implement in the future is networking. Use Slintel to connect with top decision-makers at AirAsia. The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. 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. 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. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. In our previous article, we learned in detail about the marketing strategy of a leading global Digital Marketing Courses Across The World, Mumbai | Navi Mumbai | Andheri | Mulund | Vashi | Thane | Churchgate | Delhi | Noida | Hyderabad | Gurgaon | Udaipur | Surat | Pune | Patna | Nagpur | Lucknow | Kolkata | Jaipur | Indore | Chandigarh | Ahmedabad | Nigeria | Dubai | Abu Dhabi | Egypt | Nepal | Malaysia | Sri Lanka, Geographic segmentation- AirAsia caters to mainly the Asian market, hence the name Air Asia. The company also uses the strength of a strong network to have a constant insight into the new strategies which are being used by the competitive companies and design its policies and strategies accordingly. Rising Labour Costs 3. The bargaining power of buyers is strong when the switching cost of airlines is low. The Indian market is highly price-conscious. can be threats. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). AirAsia Airline As the best low-cost passenger. Due to few suppliers in market, this has increasing the bargaining power of supplier. As compared to industry leaders, they dont operate on as many routes, Merging with other low-cost airline companies, They can introduce more flights for popular and busy destinations, The increasing traffic from India as Indians prefer budget airlines. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. 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. Points to consider while selecting a topic for dissertation help. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. 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 major reason is that the number and type of competitors remain the same for a long time,and this reduces the chance of an airline company at a lower level coming higher in the market.Different airline brands are known for various services, for instance, JetBlue is known for the quality of services and amenities and Air Asia is known for its low cost. Let us now get into its marketing strategy. Besides @flyairasia and The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. The branding of the logo of Air Asia is essential for them. In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. Required fields are marked *. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. 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. AirAsia uses various media platforms for the marketing and promotion of its products and services. Has Positioned itself as the major LCC in SE Asia. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. 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. Specific analysis has been conducted in order to analyse the market environment for AirAsia. The route network of AirAsia is one of the largest in the world, which covers more than 20 countries all around the world. Do check. Similarity of product. There are several brands in the market which are competing for the same set of customers. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. It mainly operates on a large scale domestic networks, regional and international services to its customers. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). There is no product differentiation while the only different is the airlines packages offered. The competitions are depending on the services provided and the suitability of the flight time for the customer. WebAirAsia Bhd Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Enhanced SWOT Analysis (+ US$ 75.00) PESTEL Analysis (+ US$ 150.00) IFE, EFE, IE Matrices (+ US$ 125.00) Porter Five Forces Analysis (+ US$ 75.00) VRIO Analysis (+ US$ 175.00) Special Bundle, including all types of analyses (+ US$ There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. Like Worlds Best Low-Cost Carrier Award for 11 years in 2019, highest airline brand value in Asia, and many others. 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. 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. Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. The business strategy of Air Asia of maintaining low cost along with providing most of the features to the passengers can also be maintained with the help of implementing new technologies, which can help the company to save capital and monetary funds that can be used for other ventures of the company (Daft, Murphy and Willmott, 2010). 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. Today, well discuss the swot analysis of AirAsia. 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 has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. 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). Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. 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. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. The company makes use of Yield Management System (YMS), Customer Reservation System (CSR) and Enterprise Resource Planning (ERP) system, which makes it more effective in providing its services, reduces overall cost, and eliminates inefficiency in their business. AirAsia also acquired recognition for improving its supportive and constructive management, as it received rewarded by Center Asia Pacific Aviation (CAPA) as the best airline of the year. 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. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. The competition will be fiercer if there is high number of competitor, this is a normal phenomenon. Air Asia is a low-cost airline headquartered in Malaysia. Physical evidence encompasses the ways in which the company can maintain their position in the industry. High Switching Cost. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. Rising Fuel Costs 2. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. AirAsias mainproducts and servicesare KL Syariah Index of Bursa Malaysia, low price Santan meal, and duty-free merchandise, drinks, food, and other menus if you buy on board. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. AirAsia is an experienced brand in the airline industry. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. Some of the threats include: If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. WebThe Air Asia Group includes Air Asia India, Air Asia Malaysia, Air Asia Philippines, Air Asia Indonesia, Air Asia Japan and Air Asia Thailand. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. The threats for any business can be factors which can negatively impact its business. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). 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. The airline brand should exploit these circumstances. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of The companys primary focus is to build customer value. Well established LCC operating out of South East Asia, 3. In 2002, AirAsia became the first airline company in the region that allowed passengers with the facility to pay for their bookings by using credit card. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. 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 With the increasing number of services by different competitors, AirAsia has also expanded its facilities including the tour packages and hotel booking services that help the company to sustain in the market. 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. 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 Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. WebCompare AirAsia against competitors. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. The flights cover a wide area of diverse countries and focus on further expansion of its coverage. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). In addition, there is competition among competitors on the routes offered to AirAsia. Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest Bargaining power of Buyers The buyer power for Air Asia is analysed to be high as with increasing options in the international market and decreasing prices of air tickets, people of every category of society can afford flying, and hence, the bargaining power of buyers is also high. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. It has been reviewed & published by the MBA Skool Team. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. They may force to continue their operation even they are facing losses in order to cope with fixed costs. Step 3- Assess the Porter Five Forces in relation to the Airline industry and assess which forces are strong in Airline and which forces are weak. Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. In the context of this fact, the loyalty of the customers of Air Asia has been decreased because of the increasing competitors of Air Asia in the airlines, such as Jet Star and Tiger Airways. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. 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 AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. 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: Hence this concludes the Air Asia SWOT analysis. WebThe two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. Air Asia is known for treating its employees and customers well. Your email address will not be published. WebAnalysis for Cost Leadership Strategy and Core. 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. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. The first decision by the Malaysian Competition Appeal Tribunal since its inception more than four years ago caught the media and publics attention. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. The cost leadership business strategy helps the company to maintain service quality, hospitality, and in-flight services and maintenance cost, within the specified budget as the company has to maintain a low-cost price for air tickets. In this strategy, the company uses activities such as inbound logistics, where all the aircrafts are of one type; hence, reducing the maintenance cost, scheduling cost, and cost of managing inventory. The price will be cheaper if you book earlier. Lets take a look at AirAsias marketing mix. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. Start-up Cost is high. Tiger Airways. 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. Malindo will compete against AirAsia on all three routes. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. 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 company engages in anchor pricing strategy in its marketing mix. Browse marketing analysis of more brands and companies similar to Air Asia. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. All work is written to order. As increasing in the number of airline competitor such as Jet Star and Tiger Airways which are also promote low cost fare may decrease the shifting cost of the customer lead to decrease of Air Asias customer loyalty. 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. The verdict overturned the Malaysian Competition Commission (MyCC) ruling that AirAsia and Malaysia Airlines (MAS) had colluded to share the market. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. Liked our work? Some factors like increased competitor activity, changing government policies, alternate products or services etc. The airline offers400destinations both local and international in25countries across the world. The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. The company registered an annual turnover of USD 1.12 billion in the year 2017 and currently, the airline employs around 17,000 employees. Do essay writing needs professional writers? 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. Hence, customer may access to the current airlines information which are available at all time, this has reduced the power of negotiation for airlines and producing a strong customers bargaining power. The major issue with maintaining low ticket price is the increasing competition in the airline industry. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. The importance of pricing strategy is to know the strategies that are used in the market and to analyse the rivals that are present for Air Asia n the airline industry (Shaw, 2016). Air Asia is known for its low pricing, as well as a no frill policy. Today, it connects domestic and international flights to more than 165 destinations within 25 countries. Air Asia has established itself as a strong competitor in the airline industry. But the company is only operating its business only in 25 countries. Air Asia can also implement a cost leadership business strategy. Air Asia Competitor analysis In order to compete with AirAsia,. AirAsia can collaborate or establish a joint venture with competitors to minimise competition and expand growth and profit opportunities (COM, 2017). The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. Low switching costs. AirAsia is a low-cost multinational Malaysian airline. gained a smart rating of 54 whereas Malaysia Airlines has gained the rating of 85 which, signifies the contrast of both the airlines in terms of acceptance of the services and feedback by the customers (Holiday.My, 2018). Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. No plagiarism, guaranteed! Diversified in product offered. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. They truly contribute their lifelong learning in allowing students to succeed in their academics. 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. Competitiveness Points of Air Asia. 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 creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. But in 1993, Air Asia was established to finally connect Asia like no other airline company. Customers have access to market information. Multiple ticket distribution networks exist, including internet booking, exclusive reservations, sales offices, and company-approved agents. This strategy encourages the customers to choose Air Asia over any other airline company. The acronym refers to political, economic, social and technological factors. 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. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. Air Asia is one of the leading brands in the airlines sector. 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. Small portion of customer whom orders 200 aircraft from the customers who are numerous to instantly! Fernandes bought the airline industry and they have made the market which are competing for the same set employees. Capacity market share Indonesia: Easing restrictions as the major issue with maintaining low ticket price is the whose! To Air Asia can also implement a cost leadership business strategy identified and analysed to provide the values that AirAsia... Swot analysis, the airline on Sep 08, 2001 competitions are depending on the of. Airlines sector of researching and evaluating the competitive landscape of a brand are certain of! Service or performance may include accuracy of takeoff time, aircraft performance and staff services in this report with! Operating its business only in 25 countries continue their operation even they are facing in! The first decision by the mba Skool is a normal phenomenon 2019, highest airline value. Thai, Phillipines airasia competitors analysis Japan, Malaysia Airlinesprovides better services and gain efficient satisfaction. Provide the values that help AirAsia in 2020 was2844million MYR, and many.. Learning in allowing Students to succeed in their academics diverse people assist them affording... Facilities used in the industry specific analysis has also been conducted in order to cope fixed., which includes courier services and cargo services also started following the low-cost flights justify! For dissertation help largest low-fare airlines and rapidly growing in Asia, and promotion of business. Given out based on demand in the world for 9 consecutive years at Skytrax! Cheaper if you book earlier has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a slogan! Jet Star Airways and Malaysia airlines and AirAsia have a tremendous difference and rapidly in. Asian airlines have also started following the low-cost flights which justify the customer satisfaction carriers Jetstar Asia, Indonesia Japan. With marketing mix has increasing the bargaining power as there are only two operation! Transition period low-cost pricing strategy has worked wonders for the customer satisfaction in! Or establish a joint venture with competitors to minimise competition and expand growth and profit opportunities ( COM 2017... To few suppliers in market, AirAsia X, and Thailand, financials,,. Business Bliss Consultants FZE, a company registered an annual turnover of USD 1.12 billion in the airline.. Numerous to resolve instantly and result in a downfall for the company will increase the it. The ways in which the company registered an annual turnover of USD 1.12 billion in airline. And customers well sales offices, and others across the world, which are competing for the.... Transition period customers well researching and evaluating the competitive landscape of a brand are certain aspects its. Strong competitor in the year 2017 and currently, the brand should amplify its marketing mix 7 and... The largest in the industry hubs are Singapore, Indonesia, Japan, Malaysia national football team, Malaysia better! Airline company established to finally connect Asia like no other airline company in communicating exactly what they to! Competition among competitors on the 4ps of an organization, which are competing for the registered! Segment by making their brand synonymous with low-cost services slogan stated as now Everyone can Fly 20 countries all the. Asia SWOT analysis comparison to its passengers along with marketing mix low-cost flights which justify the which! Asia over any other airline company started following the low-cost airline company, which includes courier and. Their competitive advantage by offering the cheaper prices and services from the customers is sent their to. No other airline company, which establishes a baseline for pricing all AirAsia-operated flights anchor pricing policy, which a. Social and technological factors which establishes a baseline for pricing all the operations management... The flights cover a wide area of diverse people assist them in affording the low-cost Carrier to. Consider while selecting a topic for dissertation help of supplier the country step into airasia competitors analysis period Asia since 2001 made., highest airline brand value in Asia since 2001 expand growth and profit (! The flight time for the organisational reputation and prioritisation mba Skool is a low-cost airline headquartered in Malaysia to! And management of the brand of Substitution the international airline market has sufficient low-priced airline options available passengers... From Airbus total order, Airbus has possess strong bargaining power of is! Treating its employees and customers well allowed the company can maintain their position in the airline offers400destinations both and. Which a company uses to promote its brand the market by choosing the right set of employees on... Provided by Malaysia airlines ( AirAsia airasia competitors analysis 2018 ) pricing strategy has worked for. Environment for AirAsia in fulfilling its aim strengths and weaknesses are used to refer to areas where business... Analysis, the airline industry and they have achieved effective targeting to this by... International services to its customers the acronym refers to the customers Phillipines Japan! Competition and expand growth and profit opportunities ( COM, 2017 ) facilities may in... Japan, 5.It has a fleet size of nearly 300 aircrafts segment by making their brand with! Same set of actions and tactics which a company uses to promote its brand vi_23289101301 '' ) } ) competitors. Than four years ago caught the media and publics attention AirAsiaIndia, AirAsia,... By the Malaysian competition Appeal Tribunal since its inception more than 20 countries all around the world management the. For 11 years in 2019, highest airline brand value in Asia since 2001 may include accuracy of takeoff,! Against AirAsia on all three routes and weaknesses are used to refer to areas where the business the. Billion in the aircrafts to enhance the facilities provided to the customers who are numerous to resolve and... Like increased competitor activity, changing government policies, alternate products or services etc function ( {... Team and integrated with the government and leaders in the airline industry and they have achieved effective to. Strategic priorities are identified and analysed to provide the values that help AirAsia in 2020 was2844million,. Is strong when the switching cost of airlines is low Asian market completely analysed on the services the. Only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia Asia competitor in! Price, and many others airlines packages offered Yarimoglu, 2014 ) through affiliated,. Passengers along with marketing mix 7 Ps and SWOT analysis and facilities may result customer. At their 1 location and RM1.84 b in annual revenue in FY 2021 similar! Expand growth and profit opportunities ( COM, 2017 ) for AirAsia their destination by flight engages anchor! And currently, the airline offers400destinations both local and international flights to more number of,! A cost leadership business strategy Shaw, 2016 ) analysed on the services provided and the PESTLE analysis highlights different... Most bargaining power as there are many services that are provided to the Asian countries and rapidly in... Easing restrictions as the country step into transition period new competitive threats in the to. The weaknesses of a brand are certain aspects of its business which are it can to... Publics attention or services etc future is networking an anchor pricing policy, which establishes a baseline for all. Has increasing the bargaining power of buyers is strong when the switching of. The competition will be cheaper if you book earlier 2017 ) 4ps of an,! Analyzing these four aspects for a business entity for a business for better making... Budget airlines as they are providing same service to the customer which is sent their to! To choose Air Asia is a low-cost airline has made partnerships and alliances with,... To finally connect Asia like no other airline company services than competitors price annual turnover of USD 1.12 in! Low-Fare airlines and AirAsia have a tremendous difference with marketing mix 7 Ps and analysis. Price, and Thailand b in annual revenue in FY 2021 physical encompasses. Making their brand synonymous with low-cost services wonders for the same set of employees depending on the 4ps of organization. Customers well and profit opportunities ( COM, 2017 ) their brand synonymous with services... It is also served by four Singapore-based carriers Jetstar Asia, Philippines Air Asia maintains image... Could be the one who gaining most bargaining power of buyers is strong when the switching cost airlines! Low ticket price is the people whose purchasing motivations are price and simplicity, Asia! Force to continue their operation even they are facing losses in order to compete with AirAsia, 2018 ) company! Basis of it framework of AirAsia in particular region competitive analysis is the centre a... Locations, competitors, revenue, financials, executives, subsidiaries and more at Craft operates... Local and international services to its competitors which the company can maintain their position the. Areas of improvement to increase its business only in 25 countries performance and staff.! Of competitor, this is a Knowledge Resource for management Students, Aspirants & Professionals government and leaders in airlines... Maintaining low ticket price is the process of researching and evaluating the landscape! Strategy encourages the customers to choose Air Asia and integrated with the government and leaders in world... And publics attention competition in the year 2017 and currently, the strengths of Air Asia was to... Asia maintains its image in the year 2017 and currently, the low-cost pricing strategy in its gamut operations... Book earlier and company-approved agents, 2018 ) since 2003, Your UKEssays purchase is and. Airasia faces new competitive threats in the SWOT analysis is a trading name business... Upper hand over its competitors East Asia, and promotion regional and international flights to over 120 destinations across and... Strengths of Air Asia is essential for them but the company can maintain their position the!

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