airasia competitors analysis

Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. It has a fleet of over 70 aircrafts, which fly to over 120 destinations and operates over 400 flights daily from its hubs situated in Thailand, Malaysia and Indonesia (AirAsia, 2018). 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. Low switching costs. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. 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. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. The marketing mixs 7 Ps model is a marketing strategy tool that is used in a business in order to gain the feedback from the market in relation to marketing objectives. But the company is only operating its business only in 25 countries. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. Some factors like increased competitor activity, changing government policies, alternate products or services etc. Fixed Cost is high. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. In 2002, AirAsia became the first airline company in the region that allowed passengers with the facility to pay for their bookings by using credit card. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. The created segments consists of consumers who share similar interests, requirements and locations. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. The company makes use of robust enterprise resource planning system, which allows it to successfully maintain process integrity, speeds up reporting, and data retrieval process. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. WebThe Air Asia Group includes Air Asia India, Air Asia Malaysia, Air Asia Philippines, Air Asia Indonesia, Air Asia Japan and Air Asia Thailand. This pricing strategy helps the company to create a base for pricing all the operations that are carried by them. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). The Indian market is highly price-conscious. 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. Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. Like Worlds Best Low-Cost Carrier Award for 11 years in 2019, highest airline brand value in Asia, and many others. 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. 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%. Looking for a flexible role? High numbers of Competitor. 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 biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. Given the current situation, in-flight experience, especially hygiene matters a lot to customers so AirAsia should heavily market its hospitality and put customers at ease in availing their services. Below are the Strengths in the SWOT Analysis of Air Asia : 1. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. But of course, there exist many competitors that require constant evaluation of strategies. Similarity of product. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. Interested in learning more? The following are strengths and weaknesses of AirAsia: 1. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. Continue reading more about the brand/company. AirAsia also acquired recognition for improving its supportive and constructive management, as it received rewarded by Center Asia Pacific Aviation (CAPA) as the best airline of the year. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. The branding of the logo of Air Asia is essential for them. 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). AirAsia is known for its low fares and no-frills policy. Swot Analysis of AirAsia Berhad. This company provides both domestic, as well as international flights in its routes. It must have a good relation with hotels and tourism companies around Asia. AirAsia participates in a lot of price-based promotions. Strengths in the SWOT analysis of Air Asia, Weaknesses in the SWOT analysis of Air Asia, Opportunities in the SWOT analysis of Air Asia, JioMart launches its Digital-First Holi Campaign targeting Sale from 1st to 8th march, Tata Groups talks over $1 billion Bisleri stake stall, Goodbye Vistara Airlines! Another strategy that the company will implement in the future is networking. The largest airline in Malaysia the business is known to be highly employee centric. The company was established in 1993, and the official operation of the company was started on 18 November 1996. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 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). Malaysia Airlinesis a member of the oneworld airline alliance and it is also considered as the flag carrier of Malaysia which is head-quartered in Kuala Lumpur International Airport. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). Its other main competitor, Malaysia Airlines , serves Kota Bahru and Singapore but dropped Bandung in late 2011. Strong Promoter 2. The company AirAsia, demographic segmentation is preferred. The company believes that customers are the key to their expansion along with their growth. Switching Cost is low. Air Asia has established itself as a strong competitor in the airline industry. Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. The airline offers400destinations both local and international in25countries across the world. It provides an understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT) in relation to its competition. 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). It has operations in over 25 countries and over 400 international and national destinations, 4. Tony Fernandes was recognised as for his outstanding work in AirAsia, and he was awarded by the International Herald Tribute Award and he also became the Malaysian CEO of the year in 2003 (Roy, 2014). Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. 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 price will be cheaper if you book earlier. If you did, be sure to share, comment, and let us know! The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. Required fields are marked *. Free resources to assist you with your university studies! The AirAsia Big Loyalty Program is one of the companys most popular campaigns, in which affluent customers win BIG points for any purchase they make and redeem those points for free airline tickets. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. After starting the first main hub, AirAsia began its second hub in Johor Bahru. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. AirAsia X was regarded as having the worlds best low-cost airline premium seat and the worlds best low-cost airline premium cabin for five consecutive years (AirAsia X, 2018). 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. When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. Today, well discuss the swot analysis of AirAsia. Your email address will not be published. Let us now get into its marketing strategy. The bargaining power of buyers is strong when the switching cost of airlines is low. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. 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. And repairing facility as it does not possess in such facilities understanding the! To promotions, AirAsia began its second hub in Johor Bahru and Singapore but dropped Bandung in late 2011 working. Another strategy that the airasia competitors analysis was observed to initiate Low-Cost tickets during the which... 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airasia competitors analysis