It is an international air travel carrier that started its flights in Malaysia and expanded its base globally. Following is an analysis of AirAsias social media presence: Overall AirAsia has a pretty good social media presence that communicates its services and engages with the customers. The increasing traffic from India and Indians prefer budget airlines as they are cost conscious 2. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these year, it is quite difficult to apply for licensing and permit for operating airline company. AirAsia is one of Asias most successful low-cost carriers. In order to stay ahead of the competition, the company needs to constantly invest in improving the additional facilities that make a difference to customers in todays times such as disposable in-flight meals, complimentary WiFi, entertainment facilities, and varied seat options. The bargaining power of buyers is strong when the switching cost of airlines is low. Another important strategy that Air Asia will consider enhancing is improving Information Technology (IT) services in the company, as well as in the aeroplanes. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines The company makes use of innovative solutions in order to provide low-cost aviation. 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. Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. The Indian market is highly price-conscious. Government regulations are strict. Technology is a major component of organisational structure which is completely analysed on the basis of IT framework of Airasia in particular region. Quizzes test your expertise in business and Skill tests evaluate your management traits. AirAsia offers transportation services to its passengers along with several other services, which includes courier services and cargo services. This model is widely implemented by various organisations for the development of their strategies in the industry. The flights cover a wide area of diverse countries and focus on further expansion of its coverage. The competitions are depending on the services provided and the suitability of the flight time for the customer. In Kuala Lumpur. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. There is no product differentiation while the only different is the airlines packages offered. This article has been researched & authored by the Content & Research Team. The cost-cutting strategies of AirAsia are effective and beneficial in terms of financial growth and maintenance (Ahmad and Neal, 2006). In accordance with the increased demands, the options available for flying has also increased, and hence, the bargaining power for buyers is examined to be high for Air Asia. Some of the key weaknesses of Air Asia are: Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. 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). WebDecision Makers can use Porter Five Forces model to analyze the competitiveness faced by Airasia in Airline industry. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. 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. AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. In the context of this fact, the loyalty of the customers of Air Asia has been decreased because of the increasing competitors of Air Asia in the airlines, such as Jet Star and Tiger Airways. 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. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. AirAsia is an experienced brand in the airline industry. Swot Analysis of AirAsia Berhad. Do you have a 2:1 degree or higher? In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. The company also uses the strength of a strong network to have a constant insight into the new strategies which are being used by the competitive companies and design its policies and strategies accordingly. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. They may compete in term of their route offering that Airasia does not fly. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. Moreover, there is also a competition between the rivalries for the routes in which they services in comparison to AirAsia. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. 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). Do check out our Free Digital Marketing Masterclass by Karan Shah. 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 AirAsias positioning is very clear in being low-cost. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. Tony Fernandes was recognised as for his outstanding work in AirAsia, and he was awarded by the International Herald Tribute Award and he also became the Malaysian CEO of the year in 2003 (Roy, 2014). 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 increasing cost has made it impossible for the company to offer low prices and remain profitable. Webprice wars with competitors, taxes and duty imposed on the firms products. Similar service provided among every airline company so the competitive may be fierce. The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. Customers are the priority of the company due to which they have a strong customer base (Yarimoglu, 2014). Customers have access to market information. WebAnalysis for Cost Leadership Strategy and Core. The route network of AirAsia is one of the largest in the world, which covers more than 20 countries all around the world. Competitiveness Points of Air Asia. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. The first decision by the Malaysian Competition Appeal Tribunal since its inception more than four years ago caught the media and publics attention. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. Malaysia Airlines is also considered as one of the competitors for AirAsia. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. The important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. The first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. 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). The following are strengths and weaknesses of AirAsia: 1. Just over 790 million shares were sold, including 592.6 million new shares, at MYR1.25 per share (USD39 cents), making it the largest IPO in Malaysia Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest The threats for any business can be factors which can negatively impact its business. Below are the Strengths in the SWOT Analysis of Air Asia : 1. Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. 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. But the company is only operating its business only in 25 countries. 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