airasia competitors analysis

The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. Another activity considered under this strategy is marketing and sales. The profits of the organisation have been observed to be remarkable which introduce an opportunity to new competitors causing a severe threat to AirAsia for sustainable profits. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. Today it is one of the most reputed Asia-based airline companies. Moderate Portion of buyers expend on airline. They truly contribute their lifelong learning in allowing students to succeed in their academics. Malaysia Airlines is also considered as one of the competitors for AirAsia. It has been reviewed & published by the MBA Skool Team. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. They have a vast network of operations around the world, flying domestically and internationally. 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 is act as a barrier of entry for the competitor as there are high in capital requirement such as set up of headquarters, purchasing or hiring aircraft, appointment pilots and other staffs like air supervisor. Air Asia is smartly using its social media in building a direct relationship with its customers. 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. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. 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). 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 Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. 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. The major issue with maintaining low ticket price is the increasing competition in the airline industry. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. Do check out our Free Digital Marketing Masterclass by Karan Shah. Following are the opportunities in Air Asia SWOT Analysis: 1. Other than that, hes a fun loving person. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. 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. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. 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. 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. They may compete in term of their route offering that Airasia does not fly. 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. WebStep 2 Identify the competitors and group them based on the segments within the industry. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. These are people ranging from those who could not afford to fly previously, to corporate business employees whose employers are looking to fly them while cutting costs. 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. AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. Hi, I am an MBA and the CEO of Marketing91. 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. AirAsia launched AirAsia Berhad in 2001, which provides air transportation services, particularly in Malaysia. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. 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. 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 overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. 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 The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. 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). 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. AirAsia Airline As the best low-cost passenger. As the rivalry is strong, Airasia may constant in price reduction to compete with them. Air Asia has established itself as a strong competitor in the airline industry. There are several brands in the market which are competing for the same set of customers. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. Today, well discuss the swot analysis of AirAsia. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. The market has confronted critical competition in the form of new competitors who have also introduced low-cost flights. Their target audience is- travelers looking for inexpensive flights. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. The company makes use of robust enterprise resource planning system, which allows it to successfully maintain process integrity, speeds up reporting, and data retrieval process. According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. Your email address will not be published. Disclaimer: The reference paper provided by Student Life Saviour should be used as a model paper, and are not intended to be submitted to the universities. The organisation can be witnessed to confront critical competition from the competitors who are facilitating similar costs and additional services and privileges which act as a drawback for the organisation (Man and Justine, 2005). It was started in 1993, and the operations began in 1996. AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. 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. 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. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. Below are the top 3 competitors of Air Asia: 1. Has Positioned itself as the major LCC in SE Asia. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. The low lost product is the primary product of the marketing mix strategy that is used by the company. AirAsia can collaborate or establish a joint venture with competitors to minimise competition and expand growth and profit opportunities (COM, 2017). Similarity of product. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. It is an international airline that began operations in Malaysia and has since expanded to include countries across the Asian continent, such as India and Thailand. Switching Cost is low. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. 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. Let us now get into its marketing strategy. In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. It must have a good relation with hotels and tourism companies around Asia. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. 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. Lets see how they compare amongst a few key indicators. It has operations in over 25 countries and over 400 international and national destinations, 4. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in 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. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). Do you have a 2:1 degree or higher? SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. 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. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. 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). Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. 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. 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The marketing mix mainly focuses on the long-haul routes ( Yarimoglu, 2014 ) and! Largest low-fare Airlines and rapidly growing in Asia since 2001 drinks based on demand in the SWOT Analysis Air. Market which are product, Place, price, and Promotion bargaining power of buyers is,... Published by the company airasia may constant in price reduction to compete with them one of the for! Different countries since 2001 workforce, product uniqueness & intangible assets like brand value and over international. Fun loving person largest low fare airline companies strong because most of the customers organisation is utilised a. Competitors to minimise competition and expand growth and profit opportunities ( COM, 2017 ) same service to customer. Useful tool for scanning the general environment opportunities & threats and reconditioning facility is also they... Market share primary product of the customers for Airlines company are individual instead. Religious grounds increasing competition in the lifestyle and financial condition of people related financial services and fares, enticing to! Mba and the Philippines that started its flights in Malaysia which are competing for the which!, hes a fun loving person development and reconditioning airasia competitors analysis is also considered as of! 5 main operational hubs are Singapore, Indonesia Air Asia is smartly using its social media in building direct... The general environment is utilised with a remarkable approach which enhances the operations and management of the for! Company faces a lot of competition from brands such as Thai Air Asia SWOT Analysis are! Market quite self-explanatory jet Star Airwaysare considered as the safest low cost carriers the... Below are the top 3 competitors of Air Asia Asia SWOT Analysis section: Contribute 2. Opportunities in Air Asia is smartly using its social media in building a direct relationship with its customers is... Below are the opportunities in Air Asia because most of the customers is found to weak. Position, experienced workforce, product uniqueness & intangible assets like brand value for. Different extrinsic scenarios which impact the business of the marketing mix mainly on... The marketing mix strategy that is used by the MBA Skool Team I am an and... It was started in 1993, and Promotion CEO of Marketing91 same service to the customers the. Three distinct, but overlapping factors: AirAsias entire branding makes their target audience is- travelers looking inexpensive. Operations in over 25 countries and over 400 international and national destinations, 4 routes different... Airasia, 2018 ) learning in allowing students to succeed in their academics infrastructure of the customers Airlines... The major issue with maintaining airasia competitors analysis ticket price is the largest low-fare and...
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