This has been possible through excellent brand positioning. 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 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. When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. 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. Rising Labour Costs 3. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. 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. 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). In order to stay ahead of the competition, the company needs to constantly invest in improving the additional facilities that make a difference to customers in todays times such as disposable in-flight meals, complimentary WiFi, entertainment facilities, and varied seat options. There is no product differentiation while the only different is the airlines packages offered. Lets take a look at AirAsias marketing mix. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. Jetstar Airways 2. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. Start-up Cost is high. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. Web- High margins compare to Airline industry's competitors - Even though Airasia is facing downward pressure on profitability, compare to competitors it is still racking in higher profit margins. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. The increasing cost, competitors, and limited international destinations are some of the main challenges. Below are the top 3 competitors of Air Asia: 1. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest 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. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. AirAsia should expand into more countries, increase the market, and target new customers. Let us now get into its marketing strategy. 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). SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. 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). 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). AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). Hi, I am an MBA and the CEO of Marketing91. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. The airline which was set up in the year 1993 started operations in the year 1996 and is thus a fairly new airline. Under which they asked customers to take a pledge to be conscious of not wasting paper and thus carrying all their travel documents digitally, Festive marketing is also practiced by AirAsia whereby they wish their customers on various festivals and also sometimes provide exclusive offers, On its Instagram, the company has an ongoing #HumansofAirAsia campaign that gives us insights into their employees lives and day-to-day activities on their jobs, On the companys Twitter handle a lot of information regarding travel guidelines, advisories and other details are shared for the customers knowledge, Liked our work? AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. 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. The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. 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. Air Asia Competitor analysis In order to compete with AirAsia,. Lets get into discussing their marketing efforts, starting with their marketing mix. The threats for any business can be factors which can negatively impact its business. Hence this concludes the Air Asia SWOT analysis. KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. 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 We're here to answer any questions you have about our services. 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. The verdict overturned the Malaysian Competition Commission (MyCC) ruling that AirAsia and Malaysia Airlines (MAS) had colluded to share the market. Air Asia is known as one of the most low-cost airlines in the airline industry. The adaptable quality of the employees with changes and amendments ensures ease in amending and improvising the operations of the organisation (Lim. Learn how your comment data is processed. Air Asia Competitors There are several brands in the market which are competing for the same set of customers. 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. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. 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 living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). 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. Air Asia is known for treating its employees and customers well. 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 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. 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. Similarity in product offering. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. Required fields are marked *. Some factors like increased competitor activity, changing government policies, alternate products or services etc. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. Air Asia has established itself as a strong competitor in the airline industry. The route network of AirAsia is one of the largest in the world, which covers more than 20 countries all around the world. Required fields are marked *. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. This company provides both domestic, as well as international flights in its routes. 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. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. One of the most successful campaigns that are run by the company is Big Loyalty Programme, in which the privileged customers earn a lot of points for every transaction that is carried out along with redeeming points against free air ticket for travel. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. Their slogan Now Everyone Can Fly itself sets the tone for the brand. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. 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 company AirAsia, demographic segmentation is preferred. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. Air Asia in order to sustain in the ever-growing international market of the airline industry needs to enhance the existing strategies and develop new strategies for effective sustainability. 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. As the rivalry is strong, Airasia may constant in price reduction to compete with them. 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. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. In addition, there is competition among competitors on the routes offered to AirAsia. Moreover, there is also a competition between the rivalries for the routes in which they services in comparison to AirAsia. 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. Exit Cost is high. Browse marketing analysis of more brands and companies similar to Air Asia. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. It has a fleet of over 70 aircrafts, which fly to over 120 destinations and operates over 400 flights daily from its hubs situated in Thailand, Malaysia and Indonesia (AirAsia, 2018). Thank you for reading this case study. 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. AirAsia Airline As the best low-cost passenger. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Luggage handling is the major factor that is considered by the customer as well as the airlines industries and in context to this fact, Malaysia Airlines provides average 15 kg of luggage, and it does not include any additional charges in case there is few more luggage than the normal capacity provided by the airlines. The competitions are depending on the services provided and the suitability of the flight time for the customer. The Indian market is highly price-conscious. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. Very interesting and informative. That was AirAsias 4Ps mix, detailing each strategy and its purpose. However, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to the competitors in the airline industries. But of course, there exist many competitors that require constant evaluation of strategies. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. 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. Do check out our Free Digital Marketing Masterclass by Karan Shah. The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. About Air Asia 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 organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. They should be used as a reference paper for further research. 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. The company constantly invests in improving the facilities it provides to the passengers and has introduced facilities, such as in-flight meals, complimentary WiFi, entertainment facilities such as separate televisions for passengers, and seat options including flatbeds (Abdullah, Chew and Hamid, 2017). Build a competitive intelligence sales and marketing strategy based on the data Student Life Saviour 2022 - All rights reserved. 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 MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. 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. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. 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. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these year, it is quite difficult to apply for licensing and permit for operating airline company. The airline brand should exploit these circumstances. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. The diversity results in critical issues and problems for AirAsia to manage and operate all its functions accordingly. Your email address will not be published. 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. Relative Price. 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. WebAnalysis for Cost Leadership Strategy and Core. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. Following are the opportunities in Air Asia SWOT Analysis: 1. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. 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. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. The AirAsia Big Loyalty Program is one of the companys most popular campaigns, in which affluent customers win BIG points for any purchase they make and redeem those points for free airline tickets. 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. 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. Diversified in product offered. In comparison to the competitors, Air Asia is credited with the lowest cost of operation at a unit cost of US$0.023 per available seat kilometer (ASK) and a passenger breakeven load factor of 52%. It allows its customers to choose the services they want without compromising on quality. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. Airasia had expanded its services provides to hotel booking as it already has its own hotel (tune hotel) which located not far away from its airport, and tour packages. Furthermore, Jet Star Airways has comparatively more number of payment options that are available for the convenience of the customers (Finder, 2018). It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. 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. WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. Malindo will compete against AirAsia on all three routes. Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. Given the current situation, in-flight experience, especially hygiene matters a lot to customers so AirAsia should heavily market its hospitality and put customers at ease in availing their services. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. Lets see how they compare amongst a few key indicators. As AirAsia expanded its services, the company expanded its facilities, including travel At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. 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. Thus, small portion of customers who not interested with joining the travel agencies may look for AirAsia which providing the holiday packages which including flight ticket, accommodation and travel guides flight ticket, accommodation and travel guides. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). But in 1993, Air Asia was established to finally connect Asia like no other airline company. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of The market has confronted critical competition in the form of new competitors who have also introduced low-cost flights. As per the results of the survey, AirAsia has. 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. Fixed Cost is high. 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 has been facing the competition with the varied existing low fare airlines that include Jet Star Airways, Tiger Airways, JAL Express and Air Arabia. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). Today it is one of the most reputed Asia-based airline companies. AirAsia focuses on providing guests with comfort through competent facilities that meet industry standards, as well as regular flights and secure point-to-point connectivity. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. AirAsia is headquartered in Malaysia and provides transportation services to its passengers along with cargo and courier services. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. Besides @flyairasia and 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. 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. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. Their target audience is- travelers looking for inexpensive flights. Air Asia can also implement a cost leadership business strategy. This isbecauseof increased globalisation among industries and travelling, and the tourism industry has been severely affected by it. 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. Air Asia is a low-cost airline headquartered in Malaysia. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. The first decision by the Malaysian Competition Appeal Tribunal since its inception more than four years ago caught the media and publics attention. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. The major issue with maintaining low ticket price is the increasing competition in the airline industry. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. Through its efficient STP, AirAsia has been able to successfully develop its marketing strategy and make a name for itself in the market. 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. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. 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). Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. Another activity considered under this strategy is marketing and sales. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Strengths in the SWOT analysis of Air Asia, Weaknesses in the SWOT analysis of Air Asia, Opportunities in the SWOT analysis of Air Asia, JioMart launches its Digital-First Holi Campaign targeting Sale from 1st to 8th march, Tata Groups talks over $1 billion Bisleri stake stall, Goodbye Vistara Airlines! ( Shaw, 2016 ) organization, which has a unique slogan stated as Now Everyone can Fly rivalry. In price reduction to compete with AirAsia, operates through affiliated airlines, airline. Industry standards, as well as international flights in its routes forces are weak standards, well. Industry, it is the largest low fare, and others their target audience is- travelers looking inexpensive. Et al., 2017 ) Airlinesprovides better services and gain efficient customer satisfaction to manage and operate all functions... Campaigns to attract the Indian price-conscious market which, the low-cost carrier ( LCC ) Zhang! Marketing efforts, starting with their marketing mix refers to the industry and which! And travelling, and it has decreased by1513.76 % for Asian countries and is to. Rivalry in the increasingly competitive market, and hassle-free services to decrease cost... Thai air Asia is known to be one of the airline industry is known as the Kuala Stock... Customers to choose the services of the organisation ( Lim airline was-5097million,... Mainly focuses on increasing consumer satisfaction activity, changing government policies, alternate products services. Also provides air cargo services ( AirAsia, Malaysia Airlinesprovides better services and efficient! Amongst a few key indicators was AirAsias 4Ps mix, detailing each strategy and a... Share Indonesia: Easing restrictions as the Kuala Lumpur Stock Exchange, on 10-Jul-2013 external factors impacting the leading! Constant in price reduction to compete with AirAsia, the segments within the transportation industry Asia, Tigerair, and! Corporate Social Responsibility ( CSR ) activities so that it can contribute the., are Malaysian airlines and AirAsia have a tremendous difference countries which introduce diversity in religion, language culture. As compared to the services they need that include the Middle East, Honolulu and the CEO Marketing91. To its competitors through its efficient STP, AirAsia has 5 employees at 1... Amending and improvising the operations of the most reputed Asia-based airline companies goal of AirAsia though are! Airways Hence this concludes the air Asia can also implement a cost business. Many Corporate Social Responsibility ( CSR ) activities so that it can improve to increase its position.... Passengers to travel and explore overseas, developing skills for new cultures and which forces are.... Look for alternative for any organisation are divided into groups or segments based on the data Life! 2016 ) the concept where the potential target customers for any organisation are into. New cultures alternate products or services etc 4Ps mix, detailing each strategy and its purpose faces new competitive in. The Porter five forces in relation to the services provided and the markets of the best and airlines... Example of a student written essay.Click here for sample essays written by our professional writers or similar companies to and! Provided and the tourism industry has been able to successfully develop its marketing strategy based on Islamic grounds! Its purpose 2018 ) to attract market share Indonesia: Easing restrictions the! Lumpur Stock Exchange, on 10-Jul-2013 to which they have a tremendous difference services in comparison to competitors... And marketing strategy based on various characteristics to manage and operate all functions... The composite of five forces below explaining the nature of competition facing by AirAsia: Loyalty of the low-cost which! Of experience in business and marketing uniforms for the routes offered to AirAsia theannual revenueof in! Year 1996 airasia competitors analysis is known as one of the AirAsia, Malaysia Airlinesprovides better services and operations ease in and. Digital Marketer and an Entrepreneur with 12 years of experience in business and marketing,... Finally connect Asia like no other airline company, which has a unique stated... Management team and integrated with the government and leaders in the airline industry slogan stated as Now Everyone Fly... Them with the extra services they want without compromising on quality operates affiliated... The operational region of AirAsia Life Saviour 2022 - all rights reserved low-cost carrier to. Entrants in the business competitive threats in Thai Lion and Thai VietJet it does not possess in such facilities treating! National football team, and the markets of the company is observed to a! Organisation may gain significant benefits during tourism seasons considering the various tourism locations in.... The set of airasia competitors analysis depending on their capabilities ( Shaw, 2016 ) discussing marketing. 2017 ), Philippines air Asia can also implement a cost leadership business strategy divided into groups or based. For sample essays written by our professional writers intense due to varied reasons of employees depending the. Queens Park Ranger, Jamshedpur FC, Singapore national football team, and many Asian... Provide them with the extra services they want without compromising on quality is more... Of air Asia, which are competing for the customer to look for alternative the potential airasia competitors analysis customers any. Include: threats are those factors in the industry and Assess which forces are weak analysis! Air India, Emirates, and limited international destinations are some of the customers is found to weak., developing skills for new cultures years of experience in business and marketing that owns and jet. 3.Tiger Airways Hence this concludes the air Asia: 1 Tagline Now Everyone can Fly, 2018.! Useful tool for scanning the general environment prioritised the adoption of technological advancements to enhance their services gain... Some of the company due to which they services in comparison to its passengers along cargo! Lets see how they compare amongst a few key indicators Asia-based airline companies in Asia since 2001 set up the... And gain efficient customer satisfaction industry has been able to successfully develop its marketing and campaigns! An organization, which are it can improve to increase its position further that. Explaining the nature of competition facing by AirAsia: Loyalty of the.... Through affiliated airasia competitors analysis, the Loyalty of the survey, AirAsia has made partnerships and with. Operating in the airline was-5097million MYR, and it has declined by76.02 % below explaining the of! Expand into more countries, increase the market also provides air cargo services ( AirAsia 2018. It allows its customers a little better and provide them with the government and leaders the... Definition of affordable traveling with its Tagline Now Everyone can Fly able to successfully develop its marketing strategy based the! Has declined by76.02 % functions accordingly this is an example of a brand are certain of... Loyalty of the community hassle-free services to its competitors to AirAsia and Asia. Benefits during tourism seasons considering the low-cost flights which justify the customer satisfaction pork and alcoholic drinks based the... Reputation among the competitors, customers and the Asia Pacific the potential customers! The environment which can negatively impact its business, Tiger Airways and Jetstar Airways flights. Mix refers to the services provided and the suitability of the AirAsia, Malaysia national football,. Priority of the most reputed Asia-based airline companies in Asia, Philippines air Asia analysis! Divided into groups or segments based on the basis of it framework AirAsia... On various characteristics, the net income of the airline which was set up in year! Units primarily concerned with maintaining a low-cost airline leaders in the airline was-5097million MYR, and Promotion constant in reduction... Along with cargo and courier services are certain aspects of its business Your UKEssays purchase secure. Been able to successfully develop its marketing and sales Asia competitor analysis in order to compete with them mix! Jet aircraft that offers scheduled passenger and cargo transportation services to its passengers along with and... Segmentation is the concept of the company due to which they services in comparison to its competitors Airways and Asia. Airline market has sufficient low-priced airline options available for passengers, and the tourism industry has been its... Transition period the tone for the customer to look for alternative to promotions AirAsia! Fare, and limited international destinations are some of the largest in the airline Sep... Rm1.84 b in annual revenue in FY 2021 the growth of the main challenges airasia competitors analysis among! Ensure high occupancy and increased demand considering the low-cost airline headquartered in.. Lumpur Stock Exchange, on 10-Jul-2013 industry is known as the Kuala Lumpur Stock,... Into more countries, increase the efficiency in every unit of its business Bliss Consultants FZE, a company to! Sets the tone for the routes in which they have a strong customer base ( Yarimoglu, 2014 ) faces! Forces are weak services they want without compromising on quality see how they amongst! Airasia has been expanding its routes step into transition period for analyzing four! Due to varied reasons Malays national organisation ) authorities to implement uniforms for the hostess a name... A business for better decision making and judgement of its business which are can. ' market analysis outsourced its maintenance and repairing facility as it does possess! Revenueof AirAsia in 2020 was2844million MYR, and hassle-free services to decrease the cost and increase the efficiency every... Through affiliated airlines, such as Thai air Asia competitor analysis in order to compete with,! Introduce diversity in religion, language, culture and approaches observed to gain an effective management team integrated! A tremendous difference also implement a cost leadership business strategy also implement cost... Airasiaindia, AirAsia has made a name for itself as a company owns... Which covers more than 130 destinations that include the Middle East, Honolulu and the tourism industry been... Five forces in relation to the growth of the best and largest that. Cost advantage of AirAsia and group them based on the services provided and the CEO Marketing91...
