The competition will be fiercer if there is high number of competitor, this is a normal phenomenon. 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. That was AirAsias 4Ps mix, detailing each strategy and its purpose. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). The competitions are depending on the services provided and the suitability of the flight time for the customer. Similarity of product. Customers have access to market information. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. They should be used as a reference paper for further research. 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. Hi, I am an MBA and the CEO of Marketing91. 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. 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. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. Air Asia has established itself as a strong competitor in the airline industry. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. Their target audience is- travelers looking for inexpensive flights. WebFive steps to successful analysis of. 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. 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. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). Jetstar Airways 2. Let us now get into its marketing strategy. 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). 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 basic product strategy in its marketing mix is its low-cost air services. The branding of the logo of Air Asia is essential for them. The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. Required fields are marked *. It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. Let us start the Air Asia SWOT Analysis: For Air Asia, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Like Worlds Best Low-Cost Carrier Award for 11 years in 2019, highest airline brand value in Asia, and many others. In this strategy, the company uses activities such as inbound logistics, where all the aircrafts are of one type; hence, reducing the maintenance cost, scheduling cost, and cost of managing inventory. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. 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. 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. In addition, there is competition among competitors on the routes offered to AirAsia. The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. 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. 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. 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 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 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. Strengths. Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. Start-up Cost is high. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. This may makes the industry very competitive. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. Diversified in product offered. Looking for a flexible role? The company believes that customers are the key to their expansion along with their growth. This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. 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). This strategy encourages the customers to choose Air Asia over any other airline company. Today, well discuss the swot analysis of AirAsia. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. 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). 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. The first decision by the Malaysian Competition Appeal Tribunal since its inception more than four years ago caught the media and publics attention. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. Relative Price. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). Continue reading more about the brand/company. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in There is no product differentiation while the only different is the airlines packages offered. 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. AirAsia has won many awards over the years. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. Quizzes test your expertise in business and Skill tests evaluate your management traits. Knowing the increase of competition in the market, AirAsia applied the adaptation process (Hanan & Freeman, 1984) by expanding its operation to long haul services to various destinations. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. This is due to Airbus is a UK based aviation company and their customer may come from around the world. 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