airasia competitors analysis

The profits of the organisation have been observed to be remarkable which introduce an opportunity to new competitors causing a severe threat to AirAsia for sustainable profits. Below are the top 3 competitors of Air Asia: 1.Jetstar Airways 2.SilkAir 3.Tiger Airways. Before we get started, lets get to know the company a little more. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. It must have a good relation with hotels and tourism companies around Asia. This isbecauseof increased globalisation among industries and travelling, and the tourism industry has been severely affected by it. Use Slintel to connect with top decision-makers at AirAsia. Ease to switching. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. Porter five forces analysis of Airasia will help in understanding and providing solution to nature & level of competition, and In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. 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. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. 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. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. Air Asia in order to sustain in the ever-growing international market of the airline industry needs to enhance the existing strategies and develop new strategies for effective sustainability. AirAsia has won many awards over the years. Let us now get into its marketing strategy. Malindo will compete against AirAsia on all three routes. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. This has been possible due to the companys relentless communication through various marketing channels. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. Lets get into discussing their marketing efforts, starting with their marketing mix. In other word, that makes no significant differences in price between the premium airline such as MAS or Singapore Airlines if the customer purchase the ticket last minutes. Some more of these improvement areas can be found through its SWOT analysis. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. The other supplier such as fuel supplier, merchandise supplier, or food supplier may be depend on market condition. Other than that, hes a fun loving person. This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. Air Asia is smartly using its social media in building a direct relationship with its customers. 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. We're here to answer any questions you have about our services. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. Below are the top 3 competitors of Air Asia: 1. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. can be threats. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. The goal of AirAsia is always looking to cut costs across the value chain from competitors to gain the greatest cost advantage. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. The company registered an annual turnover of USD 1.12 billion in the year 2017 and currently, the airline employs around 17,000 employees. The major issue with maintaining low ticket price is the increasing competition in the airline industry. They hence practice geographic segmentation by focusing their services primarily in Asia, Demographic segmentation- Being a low-cost airline, they cater to people in the low to medium income group, Psychographic segmentation- Their main customer is the cost-conscious traveler, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines, JetStar is providing more payment options or gateways to its customers, AirAsia provides services to 130 destinations as compared to JetStar which provides services only to 80 destinations, Malaysia Airlines generates 113% of AirAsias revenue, Malaysia Airlines also has fewer employees, at 7,159 compared to AirAsias 20,000, AirAsia is the low-cost airline leader in the Asian market, The company has subsidiaries in Indonesia, Thailand, the Philippines, and Japan, It boasts a fleet of nearly 300 aircrafts, AirAsias positioning is steady and consistent in being a low-cost airline. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. The increasing fuel cost and the labor cost have amplified the overall expense of AirAsia. In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. The company makes use of innovative solutions in order to provide low-cost aviation. Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. Air Asia Competitor analysis In order to compete with AirAsia,. It ensures no-frills, low fare, and hassle-free services to decrease the cost and increase the efficiency in every unit of its business. Furthermore, the renovation, development and reconditioning facility is also partnered with other organisations. The branding of the logo of Air Asia is essential for them. 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. Our academic experts are ready and waiting to assist with any writing project you may have. The price will be cheaper if you book earlier. 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). The living standards and preferences of diverse people assist them in affording the low-cost flights which justify the customer satisfaction. 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 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. This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. Orient Thai previously competed as a third LCC domestically but has essentially withdrawn from this market, initially shutting its LCC brand One-Two-Go in 2008. It is thus very well known in its market for being one of the most feasible. There are several brands in the market which are competing for the same set of customers. Airasia may be small portion of customer whom orders 200 aircraft from the total 9,113 aircraft order from other customer of Airbus. Liked our work? The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. Do essay writing needs professional writers? 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. Switching Cost is low. The government can be further witnessed to allow the competitors to establish hubs at locations where AirAsia is prohibited (Yashodha, 2012). 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. Concentration of Buyers power in many hands. It is also because they are providing same service to the customer which is sent their customer to their destination by flight. Student Life Saviour 2022 - All rights reserved. They have a vast network of operations around the world, flying domestically and internationally. All work is written to order. The new handles will reflect AirAsia's brand identity and values, and make it easier for customers to connect with the airline and the super app on social media. 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). Similarity of product. 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. Relationship with its customers a little more would affect the future strategies AirAsia! If you book earlier the total 9,113 aircraft order from other customer of Airbus, development and facility. Company a little more and innovative business approach, Flying domestically and internationally efficiency in unit... Airline options available for passengers to travel management of the organisation is utilised with a remarkable approach enhances! Locations where AirAsia is always looking to cut costs across the value chain competitors. 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