airasia competitors analysis

Lets see how they compare amongst a few key indicators. 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. Do check out our Free Digital Marketing Masterclass by Karan Shah. 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. The bargaining power of buyers is strong when the switching cost of airlines is low. As there are no significant differences in product offering, the customer may differ them through the service provided. 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. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. AirAsia X was regarded as having the worlds best low-cost airline premium seat and the worlds best low-cost airline premium cabin for five consecutive years (AirAsia X, 2018). When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. It has been reviewed & published by the MBA Skool Team. They may force to continue their operation even they are facing losses in order to cope with fixed costs. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. AirAsia uses various media platforms for the marketing and promotion of its products and services. Points to consider while selecting a topic for dissertation help. Home Samples Marketing Environment Analysis of Air Asia. AirAsia is headquartered in Malaysia and provides transportation services to its passengers along with cargo and courier services. *You can also browse our support articles here >. The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. The new handles will reflect AirAsia's brand identity and values, and make it easier for customers to connect with the airline and the super app on social media. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. Malindo will compete against AirAsia on all three routes. This may makes the industry very competitive. Malaysia Airlines is also considered as one of the competitors for AirAsia. Similarity in product offering. Tiger Airways. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. The case involves the MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. This pricing strategy helps the company to create a base for pricing all the operations that are carried by them. Find useful insights on AirAsias company details, tech stack, news alerts, competitors and more. 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. WebStep 2 Identify the competitors and group them based on the segments within the industry. Similar service provided among every airline company so the competitive may be fierce. As there are no significant differences in the price compare to Air Asias competitor such as Tiger Airway and Jet Star as mentioned earlier, their customer do not need to spend more to shift to another airline. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). Your email address will not be published. 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. If you did, be sure to share, comment, and let us know! 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. 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. Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. Below are the Strengths in the SWOT Analysis of Air Asia : 1. The major factor that enhances the competition between the Malaysia Airlines and AirAsia is the luggage handling service that is provided by the Malaysia Airlines. Continue reading more about the brand/company. The airline brand should exploit these circumstances. 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. 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. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. Looking for a flexible role? AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. Air Asia has expanded their product line by not only sales ticket but also offering tourism package which is offering hotel booking while booking the ticket. Tony Fernandes was recognised as for his outstanding work in AirAsia, and he was awarded by the International Herald Tribute Award and he also became the Malaysian CEO of the year in 2003 (Roy, 2014). The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. 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 low lost product is the primary product of the marketing mix strategy that is used by the company. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). AirAsia has been a successful part of the airline industry for over a decade. Browse marketing analysis of more brands and companies similar to Air Asia. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. The airline company has already got a subsidiary AirAsia India for the local market. The important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. 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. WebAirAsias top competitors are Air India , American Airlines, Emirates Airlines , British Airways , Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. Since AirAsia is a low-cost airline and the Indian market is price-conscious, it would be a win-win situation for both. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). WebThe two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. WebAirasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. The focus of AirAsia was on maintaining its low-cost policy and in context to that AirAsia X was launched in 2007. Due to few suppliers in market, this has increasing the bargaining power of supplier. 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. This strategy encourages the customers to choose Air Asia over any other airline company. 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. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Hence this concludes the Air Asia SWOT analysis. Learn how your comment data is processed. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. In addition to this, various political factors can be highlighted by influencing the operations and management of AirAsia which have been mentioned below. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. The primary product of this company is the low-cost services that are provided to the customers. 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. Air India to discontinue Vistara after merger, DS Group Partners with Lderach (Swiss Chocolate Maker), Castrols unveils a New Logo and a Refreshed Brand Identity. Air Asia comprises of a capable and dedicated customer care team, which is committed to resolving the complaints by the customer as soon as possible. Performance of rivalry. Today it is one of the most reputed Asia-based airline companies. 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. The increase in oil prices has critically impacted the operations of the organisation. Supplier concentration in a few hands. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. 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! Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. Diversified in product offered. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. This has been possible due to the companys relentless communication through various marketing channels. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. But of course, there exist many competitors that require constant evaluation of strategies. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. 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. Air Asia Competitor analysis In order to compete with AirAsia,. No plagiarism, guaranteed! Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. It has operations in over 25 countries and over 400 international and national destinations, 4. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. Lets get into discussing their marketing efforts, starting with their marketing mix. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). This reduces the chances of small or medium enterprises to enter this industry, and hence, the threat of new entrants for Air Asia is very low. 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 Airline As the best low-cost passenger. DRB-HICOM, a government conglomerate laid the foundation of AirAsia in 1993 and it became operational on Nov 18, 1996. Some more of these improvement areas can be found through its SWOT analysis. The company cannot control a number of charges and costs which are regulated by government and airline authorities which may result in a significant loss in profits and consistency of the organisation. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. 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. AirAsia has won many awards over the years. We are achieving positive applauds from the students that have experienced our services. 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). Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. With the emerged of information technology, many companies are to operate with using the IT and e-commerce because the IT allows international business without boundaries. According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry.

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