The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. The created segments consists of consumers who share similar interests, requirements and locations. Below are the Strengths in the SWOT Analysis of Air Asia : 1. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. As increasing in the number of airline competitor such as Jet Star and Tiger Airways which are also promote low cost fare may decrease the shifting cost of the customer lead to decrease of Air Asias customer loyalty. Strong Promoter 2. It was started in 1993, and the operations began in 1996. The market has confronted critical competition in the form of new competitors who have also introduced low-cost flights. The competitions are depending on the services provided and the suitability of the flight time for the customer. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. AirAsia is one of Asias most successful low-cost carriers. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. Air Asia is one of the leading brands in the airlines sector. The approach towards technology assists the organisation in minimising risks and problems and facilitating enhancement in customer services. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. 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. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. The company believes that customers are the key to their expansion along with their growth. Air Asia is known for treating its employees and customers well. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. They may compete in term of their route offering that Airasia does not fly. 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. Lets understand AirAsias competitors better with analysis. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. It must have a good relation with hotels and tourism companies around Asia. Some writers often extend the acronyms to include legal and environmental factors. 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. 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. The airline offers 0.023 dollars per seat kilometer fare to its customers, and it is the worlds lowest airline fare. 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. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. The airline which was set up in the year 1993 started operations in the year 1996 and is thus a fairly new airline. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. Diversified in product offered. Sponsorship is also one of the great marketing tools. In order to stay ahead of the competition, the company needs to constantly invest in improving the additional facilities that make a difference to customers in todays times such as disposable in-flight meals, complimentary WiFi, entertainment facilities, and varied seat options. In addition, rates are determined by the class of flight, airline load factors, travel dates and days, and competitor pricing in the airline industry. Today, well discuss the swot analysis of AirAsia. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. 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. WebCompare AirAsia against competitors. 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. Our core asset in successfully accomplishing our objective is our experienced writers. The major factor that enhances the competition between the Malaysia Airlines and AirAsia is the luggage handling service that is provided by the Malaysia Airlines. 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. Due to few suppliers in market, this has increasing the bargaining power of supplier. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. It constantly delivers on this promise of affordability, It is extremely difficult to keep costs as low as possible due to fluctuations in fuel prices and increases in service costs, AirAsia does not have its own MRO facility, Cut-throat competition in its sector. The company engages in anchor pricing strategy in its marketing mix. AirAsia is a Malaysian low cost and no-frills airline company, which has a unique slogan stated as Now Everyone Can Fly. AirAsia adopted the Computer Reservation System (CRS), which enabled it to introduce the first-ever ticket-less travel facility and also provides features such as advanced boarding passes and online ticket booking. The other supplier such as fuel supplier, merchandise supplier, or food supplier may be depend on market condition. There are several companies associated with AirAsia including AirAsia X, Tun Hotel, Tune Monkey, AirAsia Berhad, Thai AirAsia Co. Ltd., AirAsia Japan Co., Ltd., PT Indonesia AirAsia (India) Limited. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. Porter five forces analysis of Airasia will help in understanding and providing solution to nature & level of competition, and Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. Use fundamental and technical analysis of AirAsia Group and its peers Please click here if you are not redirected within a few seconds. Below are the top 3 competitors of Air Asia: 1. Do essay writing needs professional writers? 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. The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). Today, it connects domestic and international flights to more than 165 destinations within 25 countries. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. 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 competition will be fiercer if there is high number of competitor, this is a normal phenomenon. 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. Orient Thai previously competed as a third LCC domestically but has essentially withdrawn from this market, initially shutting its LCC brand One-Two-Go in 2008. Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. AirAsia has won many awards over the years. Switching Cost is low. Low switching costs. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. Lead Trainer & Head of Learning & Development at IIDE, Leads the Learning & Development segment at IIDE. Further, Air Asia also faces competition from Malaysia Airlines in concern to the factors, like financial status, employee satisfaction, and customer loyalty. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. 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 basic product strategy in its marketing mix is its low-cost air services. Study for free with our range of university lectures! Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. 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. 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