A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. The organisation can be witnessed to confront critical competition from the competitors who are facilitating similar costs and additional services and privileges which act as a drawback for the organisation (Man and Justine, 2005). 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). There are several brands in the market which are competing for the same set of customers. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. They hence practice geographic segmentation by focusing their services primarily in Asia, Demographic segmentation- Being a low-cost airline, they cater to people in the low to medium income group, Psychographic segmentation- Their main customer is the cost-conscious traveler, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines, JetStar is providing more payment options or gateways to its customers, AirAsia provides services to 130 destinations as compared to JetStar which provides services only to 80 destinations, Malaysia Airlines generates 113% of AirAsias revenue, Malaysia Airlines also has fewer employees, at 7,159 compared to AirAsias 20,000, AirAsia is the low-cost airline leader in the Asian market, The company has subsidiaries in Indonesia, Thailand, the Philippines, and Japan, It boasts a fleet of nearly 300 aircrafts, AirAsias positioning is steady and consistent in being a low-cost airline. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. 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. Some factors like increased competitor activity, changing government policies, alternate products or services etc. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. We're here to answer any questions you have about our services. Swot Analysis of AirAsia Berhad. Continue reading more about the brand/company. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. 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. Hence this concludes the Air Asia SWOT analysis. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. The company was established in 1993, and the official operation of the company was started on 18 November 1996. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. 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. Continue reading more about the brand/company. AirAsia is known for its low fares and no-frills policy. 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. Although the two major suppliers of aeroplane structures are Airbus and Boeing, the suppliers of other facilities required in an aeroplane, for hospitality services including food and merchandise, are available in adequate amount in the market. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Lets understand AirAsias competitors better with analysis. KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. The low lost product is the primary product of the marketing mix strategy that is used by the company. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. But in 1993, Air Asia was established to finally connect Asia like no other airline company. Browse marketing analysis of more brands and companies similar to Air Asia. Customers have access to market information. There is no product differentiation while the only different is the airlines packages offered. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. Airlines allowed to increase ight operations, with strict Maximising revenue in a reduced capacity/ competition 2020 environment 14 74,642 mil 45-60% of 2019 85% of 2019 Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines They have official handles on all major platforms but for the purposes of this segment, we shall take a look at the main 3, which are Instagram, Twitter, and Facebook. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. This has been possible due to the companys relentless communication through various marketing channels. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. This strategy encourages the customers to choose Air Asia over any other airline company. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. Tiger Airways. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. 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. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. Their target audience is- travelers looking for inexpensive flights. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. Air Asia is known as one of the most low-cost airlines in the airline industry. Low Cost Model: Low cost operations and fixed costs . 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$ The company AirAsia, demographic segmentation is preferred. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these year, it is quite difficult to apply for licensing and permit for operating airline company. 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. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. 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. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. 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. The verdict overturned the Malaysian Competition Commission (MyCC) ruling that AirAsia and Malaysia Airlines (MAS) had colluded to share the market. WebCompare AirAsia against competitors. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. Do check out our Free Digital Marketing Masterclass by Karan Shah. Airasia had expanded its services provides to hotel booking as it already has its own hotel (tune hotel) which located not far away from its airport, and tour packages. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). Do essay writing needs professional writers? Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. Specific analysis has been conducted in order to analyse the market environment for AirAsia. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. 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. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. But the company is only operating its business only in 25 countries. 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 company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. Concentration of Buyers power in many hands. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. 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). Currently, the priority for the company is to maintain the fundamental principle of keeping travel fair as low as possible so that people with weak financial status can also afford to travel in flights. The company believes that customers are the key to their expansion along with their growth. AirAsia uses various media platforms for the marketing and promotion of its products and services. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. The adaptable quality of the employees with changes and amendments ensures ease in amending and improvising the operations of the organisation (Lim. Focusing on providing air travel without frills at substantially lower prices, AirAsia has managed to achieve lower prices to attain high passenger loads, market share, and profitability by eliminating provision of The case involves the Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. WebFive steps to successful analysis of. Has Positioned itself as the major LCC in SE Asia. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. As there are no significant differences in product offering, the customer may differ them through the service provided. Lets see how they compare amongst a few key indicators. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). Many airline companies have entered the airline industry and they have made the market very competitive. Besides @flyairasia and The organisational image is consistent and successful concerning the competition in the market. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). Let us now get into its marketing strategy. We hope you found what you were looking for. The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. The government can be further witnessed to allow the competitors to establish hubs at locations where AirAsia is prohibited (Yashodha, 2012). 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. The increasing cost has made it impossible for the company to offer low prices and remain profitable. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. The diversity results in critical issues and problems for AirAsia to manage and operate all its functions accordingly. 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. 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? Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. Start-up Cost is high. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. Malindo will compete against AirAsia on all three routes. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. 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. Do you have a 2:1 degree or higher? 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). This has been possible through excellent brand positioning. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. 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. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. *You can also browse our support articles here >. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. 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