Jetstar Airways 2. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. Rising Fuel Costs 2. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. The Essay Writing ExpertsUK Essay Experts. 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. 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. Air Asia is known for its low pricing, as well as a no frill policy. 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. Similarity in product offering. They may compete in term of their route offering that Airasia does not fly. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in AirAsia focuses on delivering accessible promotions, in which customers are aware of new product offers with minimal company intervention through simple tools such as emails. AirAsia is known for its low fares and no-frills policy. 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. Hi, I am an MBA and the CEO of Marketing91. Best regards from Kazakhstan.My name is Ainash. Government regulations which target various aspects such as particular routes, landing permissions and share possession cause a drastic impact on the operations of the organisation. Basic things to know before seeking help in assignment. Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. The brand colours of Air Asia are red and white, which represent determination along with passion, perfection, and positivity to serve customers high-quality services at low prices (Mele, Pels and Storbacka, 2015). Your email address will not be published. Lets see how they compare amongst a few key indicators. Free resources to assist you with your university studies! Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. Lets understand AirAsias competitors better with analysis. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). For example, they had a #responsibletraveller campaign on Instagram. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. Bargaining power of Buyers The buyer power for Air Asia is analysed to be high as with increasing options in the international market and decreasing prices of air tickets, people of every category of society can afford flying, and hence, the bargaining power of buyers is also high. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. Multiple ticket distribution networks exist, including internet booking, exclusive reservations, sales offices, and company-approved agents. The branding of the logo of Air Asia is essential for them. 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. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Airasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. It allows its customers to choose the services they want without compromising on quality. 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. 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. The focus of AirAsia was on maintaining its low-cost policy and in context to that AirAsia X was launched in 2007. Find useful insights on AirAsias company details, tech stack, news alerts, competitors and more. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. That was AirAsias 4Ps mix, detailing each strategy and its purpose. Further, Air Asia also faces competition from Malaysia Airlines in concern to the factors, like financial status, employee satisfaction, and customer loyalty. However, the low-cost pricing strategy has allowed the company to target price-conscious customers in the Asian market. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. Furthermore, AirAsia adopted a fare structure, according to which, the people who book tickets earlier will get a cheaper fare (AirAsia, 2018). The airline company has already got a subsidiary AirAsia India for the local market. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). Exit Cost is high. Our academic experts are ready and waiting to assist with any writing project you may have. Today, well discuss the swot analysis of AirAsia. 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. 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). Interested in learning more? It is essential to choose the right set of employees for the organisation in order to maintain their position. Points to consider while selecting a topic for dissertation help. AirAsiastop competitorsareAir India,American Airlines,Emirates Airlines,British Airways,Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. The content on MBA Skool has been created for educational & academic purpose only. In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. Air Asia is one of the leading brands in the airlines sector. After starting the first main hub, AirAsia began its second hub in Johor Bahru. 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). However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. 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). Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. AirAsia participates in a lot of price-based promotions. AirAsia launched AirAsia Berhad in 2001, which provides air transportation services, particularly in Malaysia. Relative insignificant influence of buyer to supplier. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). 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. AirAsias mission is to be the best company, which ensures good relations between its management and employees, to make everyone fly with AirAsia by attaining the lowest cost, employ new technology to maintain highest quality products and enhance service levels. 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. WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. 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. It must have a good relation with hotels and tourism companies around Asia. The basic product strategy in its marketing mix is its low-cost air services. Through its efficient STP, AirAsia has been able to successfully develop its marketing strategy and make a name for itself in the market. Air Asia uses direct sales methods, such as sales through the internet, call centres, and walk-in airport sales. The company AirAsia, demographic segmentation is preferred. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. 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. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. 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