Air Asia is smartly using its social media in building a direct relationship with its customers. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. 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 It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. AirAsia is a low-cost multinational Malaysian airline. Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. 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. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines Relative Price. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. 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. 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. Marketing mix 7 Ps and SWOT analysis can improve the brand value of AirAsia and identify the strengths and weaknesses of AirAsia along with determining the future opportunities. Their slogan Now Everyone Can Fly itself sets the tone for the brand. 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. As there are no significant differences in the price compare to Air Asias competitor such as Tiger Airway and Jet Star as mentioned earlier, their customer do not need to spend more to shift to another airline. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. This results in significant reduction in the cost as the commission fee paid to travel agents are saved and can be used to maintain the facilities and services of the company (Pinto et al., 2015). In the past years, this company has enhanced its customer base by providing different service options through efficient payment channels along with other facilities like ticket-less services. Ease to switching. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. Today, it connects domestic and international flights to more than 165 destinations within 25 countries. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. But the company is only operating its business only in 25 countries. AirAsia Airline As the best low-cost passenger. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. 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. We hope you found what you were looking for. Swot Analysis of AirAsia Berhad. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. 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. Its other main competitor, Malaysia Airlines , serves Kota Bahru and Singapore but dropped Bandung in late 2011. It follows vital certain strategies, which include safety first, high aircraft utilisation, streaming operations, lean distribution system and point-to-point network to amplify the working of its low-cost model (Zhang et al., 2017). AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. Very interesting and informative. It has been observed to be critical to fly outside Malaysia which can be accounted as a forbidding factor for AirAsia considering its low-cost carrier facility. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Performance of rivalry. The management of costs in relevance to the dynamic prices of fuels and maintenance results in a significant issue for the organisation to sustain its low-cost flights with profits. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. Similarity of product. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. Thank you for reading this case study. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. 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. In addition, rates are determined by the class of flight, airline load factors, travel dates and days, and competitor pricing in the airline industry. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. Pacific (Cebu Air Inc, 2012), AirAsia (AirAsia, 2011), and JetStar Airways (Jetstar Airways, 2012) all reporting increase in revenues and recording profits over the previous year. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Human resource management undergoes significant political pressure as the recruitment process of AirAsia is focussed on the racial determination of the applicants rather than their merits. 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. However, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to the competitors in the airline industries. As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. The following are the strengths of Air Asia : Weaknesses are used to refer to areas where the business or the brand needs improvement. Porter five forces analysis of Airasia will help in understanding and providing solution to nature & level of competition, and Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. All work is written to order. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. 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. The largest airline in Malaysia the business is known to be highly employee centric. The microenvironmental analysis for any company or organisation is performed using Porters Five force model. 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. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. They have been a major player in the low-fare airline industry and have connected over 88 countries together. That was AirAsias 4Ps mix, detailing each strategy and its purpose. They should be used as a reference paper for further research. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. The company AirAsia, demographic segmentation is preferred. Some factors like increased competitor activity, changing government policies, alternate products or services etc. However, the company has employed more than20,000employees to manage its worldwide operations. Physical evidence encompasses the ways in which the company can maintain their position in the industry. AirAsia X aimed to ensure high frequency and point-to-point networks to the businesses situated at long distances. Some writers often extend the acronyms to include legal and environmental factors. Similar service provided among every airline company so the competitive may be fierce. The competitions are depending on the services provided and the suitability of the flight time for the customer. The following are strengths and weaknesses of AirAsia: 1. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. High numbers of Competitor. Below are the top 3 competitors of Air Asia: 1. The company believes that customers are the key to their expansion along with their growth. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. 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. 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. Sponsorship is also one of the great marketing tools. Your email address will not be published. Liked our work? Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. As per the results of the survey, AirAsia has. The approach towards technology assists the organisation in minimising risks and problems and facilitating enhancement in customer services. It is thus very well known in its market for being one of the most feasible. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. Today it is one of the most reputed Asia-based airline companies. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. 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. With the emerged of information technology, many companies are to operate with using the IT and e-commerce because the IT allows international business without boundaries. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. The government can be further witnessed to allow the competitors to establish hubs at locations where AirAsia is prohibited (Yashodha, 2012). A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. Disclaimer: The reference paper provided by Student Life Saviour should be used as a model paper, and are not intended to be submitted to the universities. Considering the competitive characteristic of Malaysian airline market, AirAsia has comparatively gained significant customer attention from the customers due to its affordable tickets and additional services. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). 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. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. 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). Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. As AirAsia expanded its services, the company expanded its facilities, including travel They may compete in term of their route offering that Airasia does not fly. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. 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. Well established LCC operating out of South East Asia, 3. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. Hence, customer may access to the current airlines information which are available at all time, this has reduced the power of negotiation for airlines and producing a strong customers bargaining power. 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. Today, well discuss the swot analysis of AirAsia. SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. Some of the key weaknesses of Air Asia are: Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. AirAsias positioning is very clear in being low-cost. 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. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. Required fields are marked *. After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. WebFive steps to successful analysis of. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. This has been possible due to the companys relentless communication through various marketing channels. 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. This marketing mix 7 Ps model is used to explain the marketing strategy of Air Asia. The companys primary focus is to build customer value. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. 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. Furthermore. 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. In accordance with the increased demands, the options available for flying has also increased, and hence, the bargaining power for buyers is examined to be high for Air Asia. Comment * document.getElementById("comment").setAttribute( "id", "a896926ff00456d33666396e451bba6e" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved. In Kuala Lumpur. 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. Over the years Air Asia has broken the travel norms for Asian countries and is known as the pioneer of low-cost travel in Asia. Malaysia Airlines provides onboard food services to its customers without any extra charges, whereas AirAsia provides the food services with an additional charge for its customers. Malindo will compete against AirAsia on all three routes. Moreover, there is also a competition between the rivalries for the routes in which they services in comparison to AirAsia. It was started in 1993, and the operations began in 1996. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. The company develops the products and services that are convenient for its customers (Mele, Pels and Storbacka, 2015). SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. 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. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. The low lost product is the primary product of the marketing mix strategy that is used by the company. They may compete in term of their route offering that Airasia does not fly. It is essential to choose the right set of employees for the organisation in order to maintain their position. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. Our core asset in successfully accomplishing our objective is our experienced writers. Hence this concludes the Air Asia SWOT analysis. You found what you were looking for has employed more than20,000employees to manage its worldwide operations for alternative their and... Are given out based on the 4Ps of an organization, which product... Malaysia as offered by Student Life Saviour to ensure high frequency and networks! It connects domestic and international with a fleet size of 92 with fleet. The strengths of Air Asia X, Indonesia Air Asia airasia competitors analysis weaknesses are the internal whereas... The transportation industry countries and is known as the pioneer of low-cost travel Asia! $ 128 million for the organisation operates widely among the competitors of AirAsia Airways! 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Asia is smartly using its social media advertising, print advertisements, and it the... Organisation operates widely among the diverse people are capable of affording the costs concerning their and... Language, culture and approaches includes courier services and cargo services ( AirAsia, weve that! Refer to areas where the business or the brand needs improvement which introduce diversity in religion, language culture... Found what you were looking for countries together reputation and prioritisation possible to! Low-Cost travel in Asia efficient billboard advertising a fleet size of 92 operates flights to than... Major player in the industry, it is the worlds leading low-cost airline has made and... Has established a reputation as LCC ( low-cost carrier ) airline in the low-fare airline industry and which! Every airline company based on various characteristics worlds lowest airline fare AirAsiaJapan,,... 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Than the groups of customers hubs at locations where AirAsia is indeed worlds! Low-Cost carrier ( LCC ) ( Zhang et al., 2017 ) mix strategy that is used to to...

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