Study for free with our range of university lectures! This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). 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. 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 competitions advantage is the centre of a companys performance to face a direct competition. There are several brands in the market which are competing for the same set of customers. Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). Lets see how they compare amongst a few key indicators. Thus, the bargaining power of suppliers is analysed to be low (Man and Justine, 2005). The threats for any business can be factors which can negatively impact its business. Liked our work? The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Concentration of Buyers power in many hands. WebAirAsia Bhd Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Enhanced SWOT Analysis (+ US$ 75.00) PESTEL Analysis (+ US$ 150.00) IFE, EFE, IE Matrices (+ US$ 125.00) Porter Five Forces Analysis (+ US$ 75.00) VRIO Analysis (+ US$ 175.00) Special Bundle, including all types of analyses (+ US$ Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. 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 focus of AirAsia was on maintaining its low-cost policy and in context to that AirAsia X was launched in 2007. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. Browse marketing analysis of more brands and companies similar to Air Asia. Low Cost Model: Low cost operations and fixed costs . Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. Hence this concludes the Air Asia SWOT analysis. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. All work is written to order. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. 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, Jet Star Airways has comparatively more number of payment options that are available for the convenience of the customers (Finder, 2018). The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Points to consider while selecting a topic for dissertation help. 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. It provides an understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT) in relation to its competition. The largest airline in Malaysia the business is known to be highly employee centric. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. AirAsia has won many awards over the years. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. Looking for a flexible role? Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. Interested in learning more? AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. Supplier concentration in a few hands. This increases the probability of people to avail of airline services frequently. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. Required fields are marked *. Our core asset in successfully accomplishing our objective is our experienced writers. 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. Lets get into discussing their marketing efforts, starting with their marketing mix. This pricing strategy helps the company to create a base for pricing all the operations that are carried by them. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. WebDecision Makers can use Porter Five Forces model to analyze the competitiveness faced by Airasia in Airline industry. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. Government regulations which target various aspects such as particular routes, landing permissions and share possession cause a drastic impact on the operations of the organisation. Air Asia is a low-cost airline headquartered in Malaysia. 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. Best regards from Kazakhstan.My name is Ainash. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. AirAsia participates in a lot of price-based promotions. AirAsia Airline As the best low-cost passenger. 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. In Kuala Lumpur. 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. As AirAsia expanded its services, the company expanded its facilities, including travel 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. 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. These include a 36% increase in passengers carried by AirAsia Malaysia, 79% increase in passengers carried by AirAsia India and an increase of 65% of passengers carried by AirAsia Thailand. Similarity of product. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. Rise of Other LCCs in Market. The microenvironmental analysis for any company or organisation is performed using Porters Five force model. AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. The introduction of ASEAN open skies policy facilitates opportunities for expansion and generalised airline regulations among the south-east countries of Asia which would benefit the organisation. Moreover, there is also a competition between the rivalries for the routes in which they services in comparison to AirAsia. The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. Today it is one of the most reputed Asia-based airline companies. WebAirAsia Competitors Specify up to 10 symbols: WH REGN XHR NVO VRTX HOG IHG rprx Sophisticated investors, who have witnessed many market ups and downs, frequently The route network of AirAsia is one of the largest in the world, which covers more than 20 countries all around the world. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. In the context of this fact, the loyalty of the customers of Air Asia has been decreased because of the increasing competitors of Air Asia in the airlines, such as Jet Star and Tiger Airways. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. 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. AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. This marketing mix 7 Ps model is used to explain the marketing strategy of Air Asia. 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. 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. Furthermore, landing charges can be identified as the negative aspect resulting into underdevelopment of the airline industry as the aviation sector is strictly obligated to abide by precise air rights regulations and norms. The flights cover a wide area of diverse countries and focus on further expansion of its coverage. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). Air Asia Competitor analysis In order to compete with AirAsia,. The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. 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