airasia competitors analysis

Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in In addition, there is competition among competitors on the routes offered to AirAsia. It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. They have been a major player in the low-fare airline industry and have connected over 88 countries together. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). 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. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. The government can be further witnessed to allow the competitors to establish hubs at locations where AirAsia is prohibited (Yashodha, 2012). The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. WebAirAsias top competitors are Air India , American Airlines, Emirates Airlines , British Airways , Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. Here are the weaknesses in the Air Asia SWOT Analysis: 1.Not on too many routes as compared to market leaders 2.Stiff competition in its sector. 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. Fixed cost incurred by an airline company may include the finance cost, hire purchase and staff cost while this fixed cost may be reduce through increase in 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. In addition to this, various political factors can be highlighted by influencing the operations and management of AirAsia which have been mentioned below. 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. Below are the top 3 competitors of Air Asia: 1. Hence this concludes the Air Asia SWOT analysis. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. 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. 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. 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). In anchor pricing strategy, the company prices its services along with the tickets at a low price. Interested in learning more? A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. This has been possible due to the companys relentless communication through various marketing channels. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). But of course, there exist many competitors that require constant evaluation of strategies. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). 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). The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. 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. We're here to answer any questions you have about our services. It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. Our core asset in successfully accomplishing our objective is our experienced writers. Following are the opportunities in Air Asia SWOT Analysis: 1. Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. Continue reading more about the brand/company. Air Asia is a low-cost airline headquartered in Malaysia. 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%. 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 Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. Concentration of Buyers power in many hands. This may makes the industry very competitive. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. The competitions are depending on the services provided and the suitability of the flight time for the customer. Required fields are marked *. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. 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. 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. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. The distribution channels for the tickets include different sources such as internet ticket booking, exclusive reservation, and sales offices along with the agents that are authorised by the company. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. can be threats. 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. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. 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? Lets understand AirAsias competitors better with analysis. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. For example, they had a #responsibletraveller campaign on Instagram. AirAsias mission is to be the best company, which ensures good relations between its management and employees, to make everyone fly with AirAsia by attaining the lowest cost, employ new technology to maintain highest quality products and enhance service levels. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. 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). Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. The major issue with maintaining low ticket price is the increasing competition in the airline industry. Learn how your comment data is processed. Marketing mix 7 Ps and SWOT analysis can improve the brand value of AirAsia and identify the strengths and weaknesses of AirAsia along with determining the future opportunities. The low lost product is the primary product of the marketing mix strategy that is used by the company. Liked our work? It provides an understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT) in relation to its competition. Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. Below are the Strengths in the SWOT Analysis of Air Asia : 1. Fixed Cost is high. 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. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). 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. 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). 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. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. Student Life Saviour 2022 - All rights reserved. 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 thus very well known in its market for being one of the most feasible. 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. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. Air Asia is known as one of the most low-cost airlines in the airline industry. Build a competitive intelligence sales and marketing strategy based on the data 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). In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. 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. Today, well discuss the swot analysis of AirAsia. Furthermore. Step 3- Assess the Porter Five Forces in relation to the Airline industry and assess which forces are strong in Airline and which forces are weak. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. 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 opportunities for any brand can include areas of improvement to increase its business. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. AirAsia has won many awards over the years. AirAsias positioning is very clear in being low-cost. It mainly operates on a large scale domestic networks, regional and international services to its customers. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. Air Asia can also implement a cost leadership business strategy. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. 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. Study for free with our range of university lectures! It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. *You can also browse our support articles here >. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. Customers have access to market information. The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. Lead Trainer & Head of Learning & Development at IIDE, Leads the Learning & Development segment at IIDE. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. 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. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. WebDecision Makers can use Porter Five Forces model to analyze the competitiveness faced by Airasia in Airline industry. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. The airline offers400destinations both local and international in25countries across the world. 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. Today, well discuss the swot analysis of AirAsia. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. Before we get started, lets get to know the company a little more. Many airline companies have entered the airline industry and they have made the market very competitive. The portions of income of an individual earns is the factors because when the portion is high, the more customers will look for cheaper price, hence the bargaining power of buyers will be strong. A recipient of numerous awards Air Asia has been consecutively designated as the leading low-cost carrier in the Asian region. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. 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. The companys primary focus is to build customer value. 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. 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