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Best regards from Kazakhstan.My name is Ainash. Today, well discuss the swot analysis of AirAsia. Strengths. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. 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). They should be used as a reference paper for further research. Lets get into discussing their marketing efforts, starting with their marketing mix. Switching Cost is low. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. This approach can ensure high occupancy and increased demand considering the low-cost flights of 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). The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. 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 supplier power for Air Asia ranges from low to medium, as any one group of suppliers is never observed to be dominating the industry of the airline. 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. They have been a major player in the low-fare airline industry and have connected over 88 countries together. It creates and maintains their competitive advantage by offering the cheaper prices and services than competitors price. As reported in The Edge Markets in 2019, Khazanahs managing director Datuk Shahril Redza Ridzuan claimed that the airlines CASK was only 15 per cent to 20 per cent higher than AirAsia and was in fact lower than regional airlines such as Singapore Airlines, Thai Airways and Cathay Pacific. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. The Threat of New Entrants In the business of airlines, the loyalty of the customers is found to be weak. The company makes use of robust enterprise resource planning system, which allows it to successfully maintain process integrity, speeds up reporting, and data retrieval process. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. The company is constantly using innovative solutions to provide low-cost transportation. Strong Promoter 2. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). Study for free with our range of university lectures! Your email address will not be published. The increasing cost has made it impossible for the company to offer low prices and remain profitable. Their slogan Now Everyone Can Fly itself sets the tone for the brand. But in 1993, Air Asia was established to finally connect Asia like no other airline company. 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$ Another reason for the threat of new entrants being low is government laws and regulations which pose restrictions on applying for permissions and license for operating an airline company. There is no product differentiation while the only different is the airlines packages offered. The branding of the logo of Air Asia is essential for them. The content on MBA Skool has been created for educational & academic purpose only. Simply put, AirAsias target market is the people whose purchasing motivations are price and simplicity. The largest airline in Malaysia the business is known to be highly employee centric. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. Sponsorship is also one of the great marketing tools. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). Build a competitive intelligence sales and marketing strategy based on the data At last, Strategic priorities are identified and analysed to provide the values that help AirAsia in fulfilling its aim. Consistent complaints concerning services and facilities may result in a downfall for the organisational reputation and prioritisation. The airline which was set up in the year 1993 started operations in the year 1996 and is thus a fairly new airline. In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. Physical evidence encompasses the ways in which the company can maintain their position in the industry. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. Continue reading more about the brand/company. Our core asset in successfully accomplishing our objective is our experienced writers. AirAsia participates in a lot of price-based promotions. 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. About Air Asia Quizzes test your expertise in business and Skill tests evaluate your management traits. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Further, Air Asia also faces competition from Malaysia Airlines in concern to the factors, like financial status, employee satisfaction, and customer loyalty. Supplier concentration in a few hands. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. Back in the 1900s Thai National Airlines was the only airline that could fly in the main routes of Bangkok Chiang Mai with non-stop flights. AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. *You can also browse our support articles here >. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. The created segments consists of consumers who share similar interests, requirements and locations. The Essay Writing ExpertsUK Essay Experts. If you did, be sure to share, comment, and let us know! SIA introduced 2 budget airlines; ValuAir and Tiger Airways.. 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. Their target audience is- travelers looking for inexpensive flights. Jetstar Airways 2. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. 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). Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. Interested in learning more? Air Asia Competitors There are several brands in the market which are competing for the same set of customers. Airlines allowed to increase ight operations, with strict Maximising revenue in a reduced capacity/ competition 2020 environment 14 74,642 mil 45-60% of 2019 85% of 2019 The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. Air Asia has expanded their product line by not only sales ticket but also offering tourism package which is offering hotel booking while booking the ticket. This marketing mix 7 Ps model is used to explain the marketing strategy of Air Asia. Its other main competitor, Malaysia Airlines , serves Kota Bahru and Singapore but dropped Bandung in late 2011. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. SWOT analysis of Air Asia analyses the brand by its strengths, weaknesses, opportunities & threats. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. In this strategy, the company uses activities such as inbound logistics, where all the aircrafts are of one type; hence, reducing the maintenance cost, scheduling cost, and cost of managing inventory. 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. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. They truly contribute their lifelong learning in allowing students to succeed in their academics. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. The important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. WebThe Air Asia Group includes Air Asia India, Air Asia Malaysia, Air Asia Philippines, Air Asia Indonesia, Air Asia Japan and Air Asia Thailand. The opportunities for any brand can include areas of improvement to increase its business. They may compete in term of their route offering that Airasia does not fly. The diversity results in critical issues and problems for AirAsia to manage and operate all its functions accordingly. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. Has Positioned itself as the major LCC in SE Asia. 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. 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. That was AirAsias 4Ps mix, detailing each strategy and its purpose. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. The company believes that customers are the key to their expansion along with their growth. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. Liked our work? The headquarter of the company is in Kuala Lumpur International Airport, Sepang, Selangor,Malaysia. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. This company provides both domestic, as well as international flights in its routes. The cost may include staff retrenchment fee, paying off the loan or debts and refunds due to flight cancellation so it may expensive for an airline company to leaving the industry. AirAsia X share began trading on Bursa Malaysia, formerly known as the Kuala Lumpur Stock Exchange, on 10-Jul-2013. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines Advantage by offering the cheaper prices and services than competitors price by choosing the right set of.. 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