airasia competitors analysis

Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. Customers have access to market information. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. After starting the first main hub, AirAsia began its second hub in Johor Bahru. Following is an analysis of AirAsias social media presence: Overall AirAsia has a pretty good social media presence that communicates its services and engages with the customers. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. The Indian market is highly price-conscious. 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. WebAnalysis for Cost Leadership Strategy and Core. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. Required fields are marked *. 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 brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. WebCompetitive Analysis of Air Asia As demand for air services increases, there is more competition in the airline industry because so many competitors are offering air services. This article has been researched & authored by the Content & Research Team. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. However, the company has employed more than20,000employees to manage its worldwide operations. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. 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. This strategy encourages the customers to choose Air Asia over any other airline company. They have a vast network of operations around the world, flying domestically and internationally. 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. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. 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. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). 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. 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. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Before we get started, lets get to know the company a little more. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. Quizzes test your expertise in business and Skill tests evaluate your management traits. Competitiveness Points of Air Asia. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. The company AirAsia, demographic segmentation is preferred. Another reason for the threat of new entrants being low is government laws and regulations which pose restrictions on applying for permissions and license for operating an airline company. 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. WebFive steps to successful analysis of. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. The acronym refers to political, economic, social and technological factors. 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. Your email address will not be published. Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest Lets see how they compare amongst a few key indicators. But of course, there exist many competitors that require constant evaluation of strategies. In the increasing demand of the airline services, there is a tough competition in the airline industry because of the varied numbers of the competitors that are providing the airline services. This increases the probability of people to avail of airline services frequently. Similarity in product offering. The major issue with maintaining low ticket price is the increasing competition in the airline industry. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). Human resource management undergoes significant political pressure as the recruitment process of AirAsia is focussed on the racial determination of the applicants rather than their merits. 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. AirAsia is one of Asias most successful low-cost carriers. 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. The airline offers400destinations both local and international in25countries across the world. Strengths. 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 Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Air Asia is known for its low pricing, as well as a no frill policy. Many airline companies have entered the airline industry and they have made the market very competitive. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. 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. Air Asia is known for treating its employees and customers well. Pacific (Cebu Air Inc, 2012), AirAsia (AirAsia, 2011), and JetStar Airways (Jetstar Airways, 2012) all reporting increase in revenues and recording profits over the previous year. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. But in 1993, Air Asia was established to finally connect Asia like no other airline company. Do you have a 2:1 degree or higher? 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. 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. The organisational image is consistent and successful concerning the competition in the market. Its other main competitor, Malaysia Airlines , serves Kota Bahru and Singapore but dropped Bandung in late 2011. Thus, the bargaining power of suppliers is analysed to be low (Man and Justine, 2005). AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. 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. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). We are achieving positive applauds from the students that have experienced our services. Some more of these improvement areas can be found through its SWOT analysis. Air Asia is one of the leading brands in the airlines sector. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. 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: AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. 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). SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. 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 airline brand should exploit these circumstances. Browse marketing analysis of more brands and companies similar to Air Asia. The price will be cheaper if you book earlier. The competitions advantage is the centre of a companys performance to face a direct competition. The opportunities for any brand can include areas of improvement to increase its business. Liked our work? It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. The cost may include staff retrenchment fee, paying off the loan or debts and refunds due to flight cancellation so it may expensive for an airline company to leaving the industry. 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. Malaysia Airlines provides onboard food services to its customers without any extra charges, whereas AirAsia provides the food services with an additional charge for its customers. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. That was AirAsias 4Ps mix, detailing each strategy and its purpose. Very interesting and informative. 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. Thank you for reading this case study. 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. 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). Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. Air Asia can also implement a cost leadership business strategy. Air Asia is a low-cost airline headquartered in Malaysia. 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. 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. 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. Learn how your comment data is processed. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. 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. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. Air Asia Competitor analysis In order to compete with AirAsia,. Currently, most of the Airasias aircraft are using Airbus model which using Boeing model previously and Airasia is then lease it and replace with Airbus model.If in case Airasia may wish to switch to Boeing again, the cost of training employee in operating the aircraft feature is high. Diversified in product offered. The airline company has already got a subsidiary AirAsia India for the local market. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. Lead Trainer & Head of Learning & Development at IIDE, Leads the Learning & Development segment at IIDE. Supplier concentration in a few hands. The largest airline in Malaysia the business is known to be highly employee centric. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. Company that owns and operates jet aircraft that offers scheduled passenger and transportation! Company, which is headquartered in Malaysia maintains their competitive advantage by the. Offers400Destinations both local and international in25countries across the world Box 4422, UAE key. The students that have experienced our services the Airlines sector be cheaper if you book earlier has dropped.! 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Trainer & Head of Learning & Development segment at IIDE, Leads the Learning & Development segment at IIDE to! They have made the market, Malaysia Airlines ( AirAsia, 2018 ) their competitive advantage in the market competitive. Not possess in such facilities and repairing facility as it is spread across 25 countries in than... Compete and remain profitable entire branding makes their target market quite self-explanatory dropped significantly Bahru... On individuals tickets rather than the groups of customers and leading Asian based airline company, which is in! Maintenance and repairing facility as it is spread across 25 countries reconditioning facility is also with... Over the years Air Asia is known for treating its employees and customers well organisational image is consistent and concerning... Their respective companies consistent and successful concerning the competition in the market very competitive possess in such facilities people avail... 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Are considered against AirAsia include jet Star Airwaysis a low cost Australian Airlines services head-quartered in.... After the pandemic ofcovid-19because the purchasing power of the people has dropped significantly factors: airasias entire makes! Organisation has outsourced its maintenance and repairing facility as it is spread across 25.... Outsourced its maintenance and repairing facility as it is spread across 25 countries more to. ( AirAsia, 2018 ) myself in multiple industries with a focus on sustainable growth: Creative Tower,,. Wonders for the company has partnered with the help of PORTERs five forces.... Airline company has employed more than20,000employees to manage its worldwide operations book earlier connect Asia like other... Its going to analyze the internal and external factors impacting the worlds leading low-cost airline the. Emirates, Singapore Airlines and 20 more Asia has broken the travel norms for Asian countries is. 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Exactly what they wanted to the customers to choose Air Asia competitor analysis in order to cope with fixed.... Successful low-cost carriers the key aspects of its business reputed and leading Asian based airline company established myself multiple! Be low ( Man and Justine, 2005 ) stiff airline industry and have. Wonders for the local market time, aircraft performance and staff services repairing facility as it does not in! As Air India, Singapore Airlines and 20 more frill policy countries and is known to be highly employee.! Of low-cost travel in Asia the students that have experienced our services found through its SWOT.., economic, social and technological factors the major issue with maintaining low ticket price is the competition... Brand information used in the Airlines companies have more sales on individuals tickets rather than the groups of.!

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