Continue reading more about the brand/company. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. Luggage handling is the major factor that is considered by the customer as well as the airlines industries and in context to this fact, Malaysia Airlines provides average 15 kg of luggage, and it does not include any additional charges in case there is few more luggage than the normal capacity provided by the airlines. 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 important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. Thank you very much Mr. Hitesh Bhasin for this SWOT analysis. Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. Lets understand AirAsias competitors better with analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. AirAsias main subsidiaries are AirAsiaIndia, Thai AirAsia X, Thai AirAsia,PhilippinesAirAsia,IndonesiaAirAsia, and AirAsia X. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. The microenvironmental analysis for any company or organisation is performed using Porters Five force model. Furthermore, landing charges can be identified as the negative aspect resulting into underdevelopment of the airline industry as the aviation sector is strictly obligated to abide by precise air rights regulations and norms. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. 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. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. Strong Promoter 2. As per the results of the survey, AirAsia has. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in Ease to switching. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. Moreover, it also provides numerous opportunities to travel and explore overseas, developing skills for new cultures. 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. They may compete in term of their route offering that Airasia does not fly. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. 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 WebFive steps to successful analysis of. Brands, such as Jet Star Airways and Tiger Airways, are sustaining in the competition as they also provide air transportation at cheap costs to people along with enhanced in-flight services and varied options for passengers.This directly affects the customer strength of Air Asia, andthese companiespose a threat to the company. 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. Rising Labour Costs 3. Hence this concludes the Air Asia SWOT analysis. The price will be cheaper if you book earlier. We are achieving positive applauds from the students that have experienced our services. AirAsia is a low-cost multinational Malaysian airline. Interested in learning more? The company AirAsia, demographic segmentation is preferred. 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. Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. As AirAsia expanded its services, the company expanded its facilities, including travel Let us now get into its marketing strategy. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). Do check. The customers are able to book their tickets and gain promotional discounts through internet booking which eliminates the issue of queues for booking and additional assistance in choosing seats. The flights cover a wide area of diverse countries and focus on further expansion of its coverage. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. 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 company makes use of robust enterprise resource planning system, which allows it to successfully maintain process integrity, speeds up reporting, and data retrieval process. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. After an in-depth study of the swot analysis of AirAsia, weve concluded that AirAsia is indeed the worlds leading low-cost airline. WebThe two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). SilkAir 3.Tiger Airways Hence this concludes the Air Asia SWOT analysis. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. 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. 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. can be threats. 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. 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. This marketing mix 7 Ps model is used to explain the marketing strategy of Air Asia. Thailand s market currently has just two local LCCs, Thai AirAsia and Nok Air. Student Life Saviour 2022 - All rights reserved. About Air Asia AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. Like Worlds Best Low-Cost Carrier Award for 11 years in 2019, highest airline brand value in Asia, and many others. Air Asia is known for treating its employees and customers well. 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. The Air Asia X mainly focuses on the long-haul routes (Yarimoglu, 2014). AirAsia uses various media platforms for the marketing and promotion of its products and services. AirAsia is headquartered in Malaysia and provides transportation services to its passengers along with cargo and courier services. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. Relative insignificant influence of buyer to supplier. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. Such events and teams have got millions of fan following, when an airline sponsors a team or an event, then it allows the company to reach new customers. AirAsias positioning is very clear in being low-cost. 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. 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). There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. Has Positioned itself as the major LCC in SE Asia. It has operations in over 25 countries and over 400 international and national destinations, 4. The airline company has already got a subsidiary AirAsia India for the local market. The AirAsia Big Loyalty Program is one of the companys most popular campaigns, in which affluent customers win BIG points for any purchase they make and redeem those points for free airline tickets. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. Your email address will not be published. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. 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$ It allows its customers to choose the services they want without compromising on quality. Step 4 - Determine overall industry structure and test analysis of consistency. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). 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. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. Other than that, hes a fun loving person. 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. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. It has a fleet of over 70 aircrafts, which fly to over 120 destinations and operates over 400 flights daily from its hubs situated in Thailand, Malaysia and Indonesia (AirAsia, 2018). The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. Air Asia is smartly using its social media in building a direct relationship with its customers. 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