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. Free resources to assist you with your university studies! Hi, I am an MBA and the CEO of Marketing91. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Malindo will compete against AirAsia on all three routes. 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. The company makes use of Yield Management System (YMS), Customer Reservation System (CSR) and Enterprise Resource Planning (ERP) system, which makes it more effective in providing its services, reduces overall cost, and eliminates inefficiency in their business. Air Asia has established itself as a strong competitor in the airline industry. Some of the threats include: If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. The company engages in anchor pricing strategy in its marketing mix. 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. Air India, Emirates, and many other Asian airlines have also started following the low-cost carrier strategy to attract market share. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. In addition to this, various political factors can be highlighted by influencing the operations and management of AirAsia which have been mentioned below. 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: 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. Webprice wars with competitors, taxes and duty imposed on the firms products. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. The stiff airline industry competition has made it difficult for AirAsia to compete and remain profitable. 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. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Diversified in product offered. 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. Supplier concentration in a few hands. AirAsia has the vision to be one of the best and largest airlines that operates at a low cost. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. Customers have access to market information. Relative insignificant influence of buyer to supplier. Air Asia is known as one of the most low-cost airlines in the airline industry. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. 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. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). Through its efficient STP, AirAsia has been able to successfully develop its marketing strategy and make a name for itself in the market. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. 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 organisation is observed to gain an effective management team and integrated with the government and leaders in the airline industry. AirAsias mainproducts and servicesare KL Syariah Index of Bursa Malaysia, low price Santan meal, and duty-free merchandise, drinks, food, and other menus if you buy on board. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. Start-up Cost is high. AirAsia participates in a lot of price-based promotions. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. Moderate Portion of buyers expend on airline. Find useful insights on AirAsias company details, tech stack, news alerts, competitors and more. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). Required fields are marked *. Home Samples Marketing Environment Analysis of Air Asia. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. Concentration of Buyers power in many hands. Rise of Other LCCs in Market. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. AirAsia is involved in many Corporate Social Responsibility (CSR) activities so that it can contribute towards the welfare of the community. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. This article has been researched & authored by the Content & Research Team. 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. There is no product differentiation while the only different is the airlines packages offered. 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. Some factors like increased competitor activity, changing government policies, alternate products or services etc. WebAnalysis for Cost Leadership Strategy and Core. These are people ranging from those who could not afford to fly previously, to corporate business employees whose employers are looking to fly them while cutting costs. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. Best regards from Kazakhstan.My name is Ainash. Specific analysis has been conducted in order to analyse the market environment for AirAsia. Below are the top 3 competitors of Air Asia: 1. As compared to the services of the AirAsia,Malaysia Airlinesprovides better services and gain efficient customer satisfaction. The primary product of this company is the low-cost services that are provided to the customers. This is due to Airbus is a UK based aviation company and their customer may come from around the world. In addition to this, the IT management of AirAsia adopts precise and effective approaches to ensuring the convenience of its customers (AIRASIA.COM, 2017). Here are the weaknesses in the Air Asia SWOT Analysis: 1.Not on too many routes as compared to market leaders 2.Stiff competition in its sector. The organisation may gain significant benefits during tourism seasons considering the various tourism locations in Asia. The threats for any business can be factors which can negatively impact its business. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. 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). Air Asia operates flights to around 165 destinations that include both domestic and international with a fleet size of 92. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. 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$ 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. Increasing globalisation has led to an increase in the lifestyle and financial condition of people. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. 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 The microenvironmental analysis for any company or organisation is performed using Porters Five force model. 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. Although the two major suppliers of aeroplane structures are Airbus and Boeing, the suppliers of other facilities required in an aeroplane, for hospitality services including food and merchandise, are available in adequate amount in the market. Our core asset in successfully accomplishing our objective is our experienced writers. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. Let us now get into its marketing strategy. 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! The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. The companys primary focus is to build customer value. Thank you for reading this case study. As compared to industry leaders, they dont operate on as many routes, Merging with other low-cost airline companies, They can introduce more flights for popular and busy destinations, The increasing traffic from India as Indians prefer budget airlines. Our academic experts are ready and waiting to assist with any writing project you may have. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. We're here to answer any questions you have about our services. Today it is one of the most reputed Asia-based airline companies. In Kuala Lumpur. 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. Kiyosaki) Air Asia Strategic Analysis The paper is prepared to analyse the strategic management of AirAsia which is KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. The price offer by an airline company may not be fixed but it will depend on the time differences between the date of booking and flight. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. Step 3- Assess the Porter Five Forces in relation to the Airline industry and assess which forces are strong in Airline and which forces are weak. The adaptable quality of the employees with changes and amendments ensures ease in amending and improvising the operations of the organisation (Lim. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. See insights on AirAsia including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. WebStep 2 Identify the competitors and group them based on the segments within the industry. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. Tiger Airways. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. Some writers often extend the acronyms to include legal and environmental factors. Air Asia is known for treating its employees and customers well. The organisation can be witnessed to confront critical competition from the competitors who are facilitating similar costs and additional services and privileges which act as a drawback for the organisation (Man and Justine, 2005). Air Asia Competitors There are several brands in the market which are competing for the same set of customers. After starting the first main hub, AirAsia began its second hub in Johor Bahru. AirAsia was named as the best low-cost airline company in the world for 9 consecutive years at the Skytrax World Airline Awards. 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. 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