Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. Do check. AirAsia is one of Asias most successful low-cost carriers. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. 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). 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. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. Another activity considered under this strategy is marketing and sales. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. Lets get into discussing their marketing efforts, starting with their marketing mix. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. Start-up Cost is high. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. 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. The price will be cheaper if you book earlier. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. AirAsias positioning is very clear in being low-cost. Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. 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. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). The competition will be fiercer if there is high number of competitor, this is a normal phenomenon. AirAsia is a low-cost multinational Malaysian airline. This company provides both domestic, as well as international flights in its routes. This is due to Airbus is a UK based aviation company and their customer may come from around the world. In this context, Air Asia will be focusing on the use of the strategy of service innovation as it is the best strategy to effectively implement the factor of providing new and enhanced services to passengers at low cost. The organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. The Indian market is highly price-conscious. AirAsia Airline As the best low-cost passenger. Rising Fuel Costs 2. 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 As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. AirAsia focuses on delivering accessible promotions, in which customers are aware of new product offers with minimal company intervention through simple tools such as emails. Basic things to know before seeking help in assignment. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. AirAsia has been a successful part of the airline industry for over a decade. Continue reading more about the brand/company. 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. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. Government regulations are strict. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. 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. 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. After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. 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. It has operations in over 25 countries and over 400 international and national destinations, 4. Ease to switching. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. DRB-HICOM, a government conglomerate laid the foundation of AirAsia in 1993 and it became operational on Nov 18, 1996. The organisational image is consistent and successful concerning the competition in the market. Required fields are marked *. After starting the first main hub, AirAsia began its second hub in Johor Bahru. Sponsorship is also one of the great marketing tools. 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: The bargaining power of buyers is strong when the switching cost of airlines is low. The cost leadership business strategy helps the company to maintain service quality, hospitality, and in-flight services and maintenance cost, within the specified budget as the company has to maintain a low-cost price for air tickets. 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. Low switching costs. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. 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. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Interested in learning more? 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. The case involves the Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. As there are adequate options available for passengers to choose from, at the similar price as Air Asia, the company needs to focus on the amenities and hospitality services it provides to the customers. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. AirAsia participates in a lot of price-based promotions. Tiger Airways. AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. Physical evidence encompasses the ways in which the company can maintain their position in the industry. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. Lets see how they compare amongst a few key indicators. Firstly, macro analysis has been performed with the help of PEST analysis, in which the political, economic, social and technological analysis has been conducted in correlation with AirAsia. This has been possible through excellent brand positioning. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. The verdict overturned the Malaysian Competition Commission (MyCC) ruling that AirAsia and Malaysia Airlines (MAS) had colluded to share the market. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. 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. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. 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