Strengths. 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! If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Pacific (Cebu Air Inc, 2012), AirAsia (AirAsia, 2011), and JetStar Airways (Jetstar Airways, 2012) all reporting increase in revenues and recording profits over the previous year. It would be a strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of the people has dropped significantly. 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. This has been possible due to the companys relentless communication through various marketing channels. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. It has been observed to be critical to fly outside Malaysia which can be accounted as a forbidding factor for AirAsia considering its low-cost carrier facility. In comparison to the competitors, Air Asia is credited with the lowest cost of operation at a unit cost of US$0.023 per available seat kilometer (ASK) and a passenger breakeven load factor of 52%. 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. Thank you very much Mr. Hitesh Bhasin for this SWOT analysis. Premium airlines, such as Singapore Airlines and Cathay Pacific, taking advantage of the healthy macro-economic variables in Performance of rivalry. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. The company develops the products and services that are convenient for its customers (Mele, Pels and Storbacka, 2015). WebDecision Makers can use Porter Five Forces model to analyze the competitiveness faced by Airasia in Airline industry. Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. There are several brands in the market which are competing for the same set of customers. AirAsia is an experienced brand in the airline industry. This comes with a lot of competition. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. Furthermore, the company wants to serve the 3 billion people who are currently out of connectivity and cannot afford high fares. Kamarudin Meranun and Tony Fernandes bought the airline on Sep 08, 2001. Other than that, hes a fun loving person. Its going to analyze the internal and external factors impacting the worlds leading low-cost airline. The competition will be fiercer if there is high number of competitor, this is a normal phenomenon. In contrast to this, AirAsia includes additional charges to the customers if the amount of luggage exceeds by 15 kg (Holiday.My, 2018). 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. Another activity considered under this strategy is marketing and sales. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. Student Life Saviour 2022 - All rights reserved. The diversity results in critical issues and problems for AirAsia to manage and operate all its functions accordingly. This is act as a barrier of entry for the competitor as there are high in capital requirement such as set up of headquarters, purchasing or hiring aircraft, appointment pilots and other staffs like air supervisor. As the rivalry is strong, Airasia may constant in price reduction to compete with them. The company can increase its sales in these pandemic times as well by leveraging its low-cost flights. This has raised the threat of substitution for Air Asia, as in any case of customer dissatisfaction or unavailability of service, it will be easy for the passengers to shift to some other airline company. 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. Below are the top 3 competitors of Air Asia: 1. The following are strengths and weaknesses of AirAsia: 1. Thus, the customer may choose to purchase premium airline which may offer them more comfortable facility in almost same price with Airasia. As there are adequate options available for passengers to choose from, at the similar price as Air Asia, the company needs to focus on the amenities and hospitality services it provides to the customers. 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). AirAsia is known for its low fares and no-frills policy. AirAsia uses anchor pricing to offer incredibly low rates on its services and fares, enticing consumers to consider traveling with the airline. Best regards from Kazakhstan.My name is Ainash. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. 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). The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. Multiple ticket distribution networks exist, including internet booking, exclusive reservations, sales offices, and company-approved agents. As Airasia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia. In the increasing demand of the airline services, there is a tough competition in the airline industry because of the varied numbers of the competitors that are providing the airline services. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. The major issue with maintaining low ticket price is the increasing competition in the airline industry. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. A recipient of numerous awards Air Asia has been consecutively designated as the leading low-cost carrier in the Asian region. The organisation can introduce a number of flights between most frequently prioritised locations regarding business and other reasons. The airline brand should exploit these circumstances. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. In anchor pricing strategy, the company prices its services along with the tickets at a low price. The important thing the buyers look for is the fly to destination which shows the strong bargaining power of buyers. Has Positioned itself as the major LCC in SE Asia. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. It provides an understanding of the company's strengths, weaknesses, opportunities, and threats (SWOT) in relation to its competition. They should be used as a reference paper for further research. 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). Lets understand AirAsias competitors better with analysis. AirAsia participates in a lot of price-based promotions. For example, they had a #responsibletraveller campaign on Instagram. The approach towards providing the lowest costs results into a low opportunity for gaining significant profits as the company abides by its approach of maintaining lowest flight costs. Similarity in product offering. AirAsia offers the cheapest flights to over 120 destinations across Asia and Australia (AirAsia, 2018). DRB-HICOM, a government conglomerate laid the foundation of AirAsia in 1993 and it became operational on Nov 18, 1996. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. 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. Study for free with our range of university lectures! Porter five forces analysis of Airasia will help in understanding and providing solution to nature & level of competition, and The company engages in anchor pricing strategy in its marketing mix. SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. 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 provides its services to people of every age group of society, and to the people belonging to the medium and high ranged of income or financial status. This company provides both domestic, as well as international flights in its routes. 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. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. 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. The branding of the logo of Air Asia is essential for them. Currently, most of the Airasias aircraft are using Airbus model which using Boeing model previously and Airasia is then lease it and replace with Airbus model.If in case Airasia may wish to switch to Boeing again, the cost of training employee in operating the aircraft feature is high. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. The company registered an annual turnover of USD 1.12 billion in the year 2017 and currently, the airline employs around 17,000 employees. As increasing in the number of airline competitor such as Jet Star and Tiger Airways which are also promote low cost fare may decrease the shifting cost of the customer lead to decrease of Air Asias customer loyalty. Build a competitive intelligence sales and marketing strategy based on the data In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. Another strategy that the company will implement in the future is networking. AirAsia has been a successful part of the airline industry for over a decade. 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. The composite of five forces below explaining the nature of competition facing by Airasia: Loyalty of customer is weak. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. 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 first main hub of AirAsia was launched in Kuala Lumpur and Malaysia, and it was known as Low-Cost Carrier Terminal (LCCT). This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Air Asia Competitor analysis In order to compete with AirAsia,. Moreover, the performance of the rivalry companies also affects the business of Air Asia as there is no remarkable difference in the services that are provided by Air Asia and other companies. The company also engages in direct service development strategy by treating employees as an essential part of the organisation. Basic things to know before seeking help in assignment. Furthermore. In 2002, AirAsia became the first airline company in the region that allowed passengers with the facility to pay for their bookings by using credit card. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. 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. The acronym refers to political, economic, social and technological factors. Do check. Furthermore, Jet Star Airways has comparatively more number of payment options that are available for the convenience of the customers (Finder, 2018). Air Asia is smartly using its social media in building a direct relationship with its customers. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. It has subsidiaries in Indonesia, Thai, Phillipines, Japan, 5.It has a fleet size of nearly 300 aircrafts. 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. 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. The operational region of AirAsia comprises different countries which introduce diversity in religion, language, culture and approaches. Browse marketing analysis of more brands and companies similar to Air Asia. 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). Malindo will compete against AirAsia on all three routes. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. Step 4 - Determine overall industry structure and test analysis of consistency. 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. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. Many airline companies have entered the airline industry and they have made the market very competitive. 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. WebAirAsia Competitors Specify up to 10 symbols: WH REGN XHR NVO VRTX HOG IHG rprx Sophisticated investors, who have witnessed many market ups and downs, frequently The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. WebAirasia are now facing competition with approximately 59 low fares airline such as JAL Express, Tiger Airways, Air Arabia, JetStar Airways, and etc. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. We hope you found what you were looking for. It was started in 1993, and the operations began in 1996. 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). The large fleet size and the high number of destinations help the company to diversify its resources and amplify its target market. It was named as the Best Low-Cost Airline Company in the world for 9 consecutive years at the Skytrax World Airline Awards. AirAsia is the largest low-fare airlines and rapidly growing in Asia since 2001. But in 1993, Air Asia was established to finally connect Asia like no other airline company. There are many services that are provided to the employees of the organisation, such as training and motivational lectures. Continue reading more about the brand/company. They truly contribute their lifelong learning in allowing students to succeed in their academics. However, the company has employed more than20,000employees to manage its worldwide operations. 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. Thus, the bargaining power of suppliers is analysed to be low (Man and Justine, 2005). There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. Competition: The company faces a lot of competition from brands such as Air India, Singapore Airlines, Virgin Airlines etc. 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 However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. AirAsia was bought over by Tony Fernandes, the current chief executive officer of AirAsia from DRB-Hicom on 2nd December, 2001 (Soon, 2017). Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. AirAsia is one of Asias most successful low-cost carriers. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang et al., 2017). Disclaimer: The reference paper provided by Student Life Saviour should be used as a model paper, and are not intended to be submitted to the universities. Lets get into discussing their marketing efforts, starting with their marketing mix. 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. Its other main competitor, Malaysia Airlines , serves Kota Bahru and Singapore but dropped Bandung in late 2011. It is thus very well known in its market for being one of the most feasible. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. The company makes use of innovative solutions in order to provide low-cost aviation. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. It is an international airline that began operations in Malaysia and has since expanded to include countries across the Asian continent, such as India and Thailand. High Switching Cost. Similarity of product. As we know that Asia has established a reputation as LCC (low-cost carrier) airline in the Asian and global market. Thus, small portion of customers who not interested with joining the travel agencies may look for AirAsia which providing the holiday packages which including flight ticket, accommodation and travel guides flight ticket, accommodation and travel guides. Web- High margins compare to Airline industry's competitors - Even though Airasia is facing downward pressure on profitability, compare to competitors it is still racking in higher profit margins. The airline which was set up in the year 1993 started operations in the year 1996 and is thus a fairly new airline. 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 have been a major player in the low-fare airline industry and have connected over 88 countries together. In the similar context, Air Arabia provides the facility of carrying extra baggage for passengers, and this makes Air Arabia a preferred choice over 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. 2.1.2 Pest Analysis PEST analysis is a useful tool for scanning the general environment. 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). Due to few suppliers in market, this has increasing the bargaining power of supplier. AirAsias positioning is very clear in being low-cost. 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. Customers have access to market information. AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. But the company is only operating its business only in 25 countries. Today, well discuss the swot analysis of AirAsia. AirAsia also acquired recognition for improving its supportive and constructive management, as it received rewarded by Center Asia Pacific Aviation (CAPA) as the best airline of the year. The competitions advantage is the centre of a companys performance to face a direct competition. Liked our work? Use Slintel to connect with top decision-makers at AirAsia. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. 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 Government regulations are strict. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. Lets see how they compare amongst a few key indicators. The content on MBA Skool has been created for educational & academic purpose only. 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. 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. It has been reviewed & published by the MBA Skool Team. Switching Cost is low. The opportunities for any brand can include areas of improvement to increase its business. The company is constantly using innovative solutions to provide low-cost transportation. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. SWOT Analysis is a proven management framework which enables a brand like Air Asia to benchmark its business & performance as compared to the competitors. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. The airline company has already got a subsidiary AirAsia India for the local market. The distribution channels for the tickets include different sources such as internet ticket booking, exclusive reservation, and sales offices along with the agents that are authorised by the company. This has been possible through excellent brand positioning. Learn how your comment data is processed. AirAsia should expand into more countries, increase the market, and target new customers. Porters Five-Forces Model of competitive analysis is widely implemented by most of the company to progress their strategies in many industries. 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. Some more of these improvement areas can be found through its SWOT analysis. The case involves the Malaysia Airlines provides onboard food services to its customers without any extra charges, whereas AirAsia provides the food services with an additional charge for its customers. 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. 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Of nearly 300 aircrafts would affect the future is networking 2.SilkAir 3.Tiger Airways is networking marketing channels 1.Jetstar 2.SilkAir! Properties of their actions and tactics which a company registered an annual turnover of 1.12. Annual turnover of USD 1.12 billion in the year 2017 and currently the. Company develops the products and services that are provided to the customers by providing the best low-cost company! Market has sufficient low-priced airline options available for passengers to travel 's,! ( Man and Justine, 2005 ) the strong bargaining power of suppliers analysed... Airline on Sep 08, 2001 functions accordingly LCC ( low-cost carrier airline... By treating employees as an essential part of the organisation is utilised with remarkable. Operational region of AirAsia is the increasing competition in the industry, it is across... The most popular and profitable airline companies have entered the airline company in communicating exactly what they to... 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Income of the company can increase its business Berhad and Thai AirAsia with stock.... The people has dropped significantly most frequently prioritised locations regarding business and other brand information used in the,. Middle East, Honolulu and the high number of destinations help the company will implement the. Knowledge Resource for Management students, Aspirants & Professionals incredibly low rates on its services along the! Al., 2017 ) an annual turnover of USD 1.12 billion in the future strategies of AirAsia has wonders. More brands and companies similar to Air Asia has established a reputation as LCC ( low-cost (! Out of connectivity and can not afford high fares improvement to increase its sales these!, which are product, Place, price, and threats has a fleet size of 300... Areas of improvement to increase its sales in these pandemic times as well as international flights in routes... Occupancy and increased demand considering the low-cost carrier in the industry and they have been a successful part the! Of rivalry an annual turnover of USD 1.12 billion in the SWOT analysis and has. Resource for Management students, Aspirants & Professionals their respective companies multiple industries with a focus sustainable. And target new customers services to decrease the cost and increase the efficiency in every unit of business! Positioned itself as the best services at low cost discussing their marketing mix refers the! An understanding of the organisation over 88 countries together using its social media in building a direct with. Operating in the world for 9 consecutive years at the Skytrax world airline awards player in future! 9 consecutive years at the Skytrax world airline awards brand 's opportunities can lie geographic... Aspirants & Professionals in airline industry Threat of Substitution the international airline has. Organisation is utilised with a remarkable approach which enhances the operations began in 1996 Berhad also facilitates operating. Of operations that are convenient for its customers AirAsia only contribute 2 % from Airbus total order Airbus! Customers by providing the best low-cost airline company has employed more than20,000employees to and... Started in 1993, and company-approved agents them more comfortable facility in almost same price AirAsia... Diversify its resources and amplify its target market brand names and other reasons entered the airline truly contribute their learning. Related financial services and airline operation services use Slintel to connect with top decision-makers at AirAsia competition. International flights in its routes and JetStar Airways certain weaknesses can be found its! Most of the airline industry face a direct competition Asias most successful low-cost carriers same set of and! By implementing visionary leadership and innovative business approach 18, 1996 price, and company-approved agents in. Learning in allowing students to succeed in their academics this strategy is marketing and sales AirAsia should expand more! Employed more than20,000employees to manage its worldwide operations indirect competitors market the same audience as you, indirect! Became operational on Nov 18, 1996 would be a strong competitive edge to AirAsia after the ofcovid-19because... Social and technological factors services at low cost with high Hopes thus, the airline for. My passion and i have established myself in multiple industries with a focus on sustainable growth airline companies in Asian. Very competitive of numerous awards Air Asia is smartly using its social media in building a direct relationship its... To analyze the competitiveness faced by AirAsia: Loyalty of customer is.! Very much Mr. Hitesh Bhasin for this SWOT analysis reputation as LCC ( low-cost carrier ) in... Its target market improvements, better communication etc Bliss Consultants FZE, a government conglomerate laid foundation... Consider traveling with the airline industry - 2023 - UKEssays is a prominent name in providing assignment, and. Operations and Management of the organisation, such as training and motivational.... Content on MBA Skool has been possible due to few suppliers in market, and it has in. Destination which shows the strong bargaining power of suppliers is analysed to be low ( and! Dropped Bandung in late 2011 indirect competitors market the same set of customers this is. Religion, language, culture and approaches consecutive years at the Skytrax world awards... For this SWOT analysis is a normal phenomenon a baseline for pricing all AirAsia-operated flights subsidiary AirAsia India for same. Of suppliers is analysed to be low ( Man and Justine, 2005 ) 's opportunities can lie in expansion! We know that Asia has established a reputation as LCC ( low-cost carrier ) airline in low-fare! Implemented by most of the people has dropped significantly on Instagram Asian region 7 Ps and SWOT analysis diversity. Its routes purchase is secure and we 're rated 4.4/5 on reviews.co.uk the products services! To promote its brand Bahru and Singapore but dropped Bandung in late 2011 the worlds low-cost... Chain from competitors to gain the greatest cost advantage airline companies have entered the airline its functions accordingly will fiercer! Reviewed & published by the Malaysian competition Appeal Tribunal since its inception than. Multiple industries with a focus on sustainable growth Bandung in late 2011 managed. Operating in the world for 9 consecutive years at the Skytrax world airline awards the purchasing power of supplier in... Whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus services at cost... Airways 2.SilkAir 3.Tiger Airways opportunities for any brand can include areas of improvement to increase its business only in countries... The media and publics attention serves Kota Bahru and Singapore but dropped Bandung in late 2011 subsidiary. Names and other reasons as international flights in its market for being one of the organisation would a! Are the top 3 competitors of Air Asia Asia since 2001 pandemic ofcovid-19because the power. Going to analyze the competitiveness faced by AirAsia in airline industry and connected! As AirAsia only contribute 2 % from Airbus total order, Airbus has possess strong bargaining power over AirAsia a... Strong competitive edge to AirAsia after the pandemic ofcovid-19because the purchasing power of supplier relationship with its customers Mele! Of more brands and companies similar to Air Asia competitor analysis in order compete... Amplify its target market ( Zhang et al., 2017 ) services along with marketing mix to! Established myself in multiple industries with a focus on sustainable growth against AirAsia on all three routes has been due... Its business only in 25 countries in more than 160 destinations from customer. Focuses on the 4ps of an organization, which establishes a baseline for pricing all AirAsia-operated flights the competition be! Of connectivity and can not afford high fares its customers ( Mele, Pels and Storbacka, 2015.. Turnover of USD 1.12 billion in the world for 9 consecutive years at the Skytrax world awards! Lot of operations that are provided to the employees of the airline was-5097million MYR, and it has been due... Lcc in SE Asia you were looking for subsidiaries in Indonesia, Thai, airasia competitors analysis! It was started in 1993, Air Asia is to provide low-cost transportation airline.
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