Air Asia is smartly using its social media in building a direct relationship with its customers. 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. Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. 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 contrast to this, Jet Star Airways has more types of planes that are provided to its customers that includes A320, Bombardier Q300, A321 and Boeing 787 Dream Liner; whereas AirAsia offers only two types of planes to its customers, which are A330 and A320. It was started in 1993, and the operations began in 1996. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. For example, they had a #responsibletraveller campaign on Instagram. Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. Continue reading more about the brand/company. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. The diverse people are capable of affording the costs concerning their location and currency as the organisation operates widely among the diverse locations. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. We hope you found what you were looking for. 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. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. Physical evidence encompasses the ways in which the company can maintain their position in the industry. 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 comes with a lot of competition. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. The company was established in 1993, and the official operation of the company was started on 18 November 1996. Home Samples Marketing Environment Analysis of Air Asia. The increasing cost has made it impossible for the company to offer low prices and remain profitable. 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. Relative insignificant influence of buyer to supplier. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. Competitiveness Points of Air Asia. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. The company is constantly using innovative solutions to provide low-cost transportation. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of Air Asia is known for treating its employees and customers well. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. They may compete in term of their route offering that Airasia does not fly. Another activity considered under this strategy is marketing and sales. Relative Price. 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. 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 company is over depending on the Asian market as its main source of earning and its a very risky business strategy. 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. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. The microenvironmental analysis for any company or organisation is performed using Porters Five force model. Our academic experts are ready and waiting to assist with any writing project you may have. 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. This company also focuses on providing the accessibility-based promotions in which the customers are informed about their new products and services by using simple tools of promotion, such as email. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. The route network of AirAsia is one of the largest in the world, which covers more than 20 countries all around the world. 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 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). 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. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. In addition, there is competition among competitors on the routes offered to AirAsia. 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. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). Exit Cost is high. Strengths. Your topic helped a lot, Your email address will not be published. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. In the increasing demand of the airline services, there is a tough competition in the airline industry because of the varied numbers of the competitors that are providing the airline services. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. The major issue with maintaining low ticket price is the increasing competition in the airline industry. Discover AirAsia alternatives or similar companies to benchmark and competitors' market analysis. It is essential to choose the right set of employees for the organisation in order to maintain their position. Since the airline brand follows the tight costing strategy and it allowed the company to offer cheap fare to the customers. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. Jetstar Airways 2. This pricing strategy helps the company to create a base for pricing all the operations that are carried by them. AirAsia uses various media platforms for the marketing and promotion of its products and 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. 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 company engages in anchor pricing strategy in its marketing mix. Rise of Other LCCs in Market. AirAsia focuses on providing guests with comfort through competent facilities that meet industry standards, as well as regular flights and secure point-to-point connectivity. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). Some factors like increased competitor activity, changing government policies, alternate products or services etc. AirAsia is an experienced brand in the airline industry. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. Air Asia has established itself as a strong competitor in the airline industry. Points to consider while selecting a topic for dissertation help. Malaysia Airlines is also considered as one of the competitors for AirAsia. The importance of pricing strategy is to know the strategies that are used in the market and to analyse the rivals that are present for Air Asia n the airline industry (Shaw, 2016). In addition, rates are determined by the class of flight, airline load factors, travel dates and days, and competitor pricing in the airline industry. Competitive Rivalry The rivalry in the airline industry is known to be very intense due to varied reasons. Strong Promoter 2. Let us start the Air Asia SWOT Analysis: For Air Asia, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Switching Cost is low. AirAsia is already trying to achieve that by expanding their facilities to hotel bookings, tour packages, etc to try and gain some competitive edge along with diversifying their product portfolio. Do check. Some more of these improvement areas can be found through its SWOT analysis. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Lead Trainer & Head of Learning & Development at IIDE, Leads the Learning & Development segment at IIDE. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). However, there is also a barrier to the establishment of the new entrant in the airlines, which is the high start-up cost that is required for the airline services. 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 companys primary focus is to build customer value. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. If you did, be sure to share, comment, and let us know! AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. This is because in the market there are others competitors which the price offered difference is not much hence the customer will choose the airlines which are convenience and best schedule suited for them. 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. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. Diversified in product offered. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. The price will be cheaper if you book earlier. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. - Strong brand recognition - Airasia products have strong brand recognition in the Airline industry. It has operations in over 25 countries and over 400 international and national destinations, 4. 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. 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). Today, well discuss the swot analysis of AirAsia. 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). The government can be further witnessed to allow the competitors to establish hubs at locations where AirAsia is prohibited (Yashodha, 2012). AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. Jet Star Airways is a low cost Australian airlines services head-quartered in Melbourne. It offered a new definition of affordable traveling with its Tagline Now Everyone Can Fly. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. 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