WebEducational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.) Forecasting, Time Series, and Regression (Richard T. O'Connell; Anne B. Koehler) Rich Dad, Poor Dad (Robert T. Kiyosaki) Air Asia Strategic Analysis The paper is prepared to analyse the strategic management of AirAsia which is Secondly, microanalysis has also been conducted for AirAsia with the help of PORTERs five forces model. Aircraft supplier could be the one who gaining most bargaining power as there are only two in operation, Boeing or Airbus. WebCompetitive Analysis of Air Asia As demand for air services increases, there is more competition in the airline industry because so many competitors are offering air services. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. Your topic helped a lot, Your email address will not be published. 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. 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. Physical evidence encompasses the ways in which the company can maintain their position in the industry. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. Air Asia is smartly using its social media in building a direct relationship with its customers. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. As per the past experiences and the feedback of the customers, Malaysia Airlines are found to react their destinations on time in comparison to AirAsia. Lets get into discussing their marketing efforts, starting with their marketing mix. 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 two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). 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%. The company confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. Relative insignificant influence of buyer to supplier. That was AirAsias 4Ps mix, detailing each strategy and its purpose. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. The company is over depending on the Asian market as its main source of earning and its a very risky business strategy. This isbecauseof increased globalisation among industries and travelling, and the tourism industry has been severely affected by it. The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. The companys primary focus is to build customer value. It has operations in over 25 countries and over 400 international and national destinations, 4. Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. In addition, rates are determined by the class of flight, airline load factors, travel dates and days, and competitor pricing in the airline industry. The company makes use of innovative solutions in order to provide low-cost aviation. This increases the probability of people to avail of airline services frequently. Well established LCC operating out of South East Asia, 3. Air Asia is known for treating its employees and customers well. 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). This marketing mix 7 Ps model is used to explain the marketing strategy of Air Asia. Do check out our Free Digital Marketing Masterclass by Karan Shah. Low Cost Model: Low cost operations and fixed costs . AirAsia X has amplified its profit-making routes to multiple countries such as Australia, France, Iran, South Korea and New Zealand. gained a smart rating of 54 whereas Malaysia Airlines has gained the rating of 85 which, signifies the contrast of both the airlines in terms of acceptance of the services and feedback by the customers (Holiday.My, 2018). Use Slintel to connect with top decision-makers at AirAsia. Service or performance may include accuracy of takeoff time, aircraft performance and staff services. The company believes that customers are the key to their expansion along with their growth. The company maintains its logo by providing high-quality exterior services of the aircraft along with the interior seats and the uniforms. The competitions advantage is the centre of a companys performance to face a direct competition. AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. 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). In order to establish a new airlines company, high amount of capital along with risk-bearing capabilities and monetary funds to cope up with the challenges faced while sustaining in the airline industryare required. 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. They truly contribute their lifelong learning in allowing students to succeed in their academics. Government regulations which target various aspects such as particular routes, landing permissions and share possession cause a drastic impact on the operations of the organisation. AirAsias marketing strategy has worked wonders for the company in communicating exactly what they wanted to the customers. Porter five forces analysis of Airasia will help in understanding and providing solution to nature & level of competition, and A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. They have a vast network of operations around the world, flying domestically and internationally. Malindo will compete against AirAsia on all three routes. 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. This tells us that AirAsia mainly needs to understand its customers a little better and provide them with the extra services they need. Hence the airlines companies have more sales on individuals tickets rather than the groups of customers. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. AirAsia is known for its low fares and no-frills policy. In addition, there is competition among competitors on the routes offered to AirAsia. The airline company has already got a subsidiary AirAsia India for the local market. 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. The company was observed to initiate low-cost tickets during the recession which assisted in establishing a prioritised reputation for the organisation. 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. However, the low-cost airline has made partnerships and alliances with AirAsiaChina, AirAsiaVietnam, AirAsiaJapan, AirAsiaIndia, AirAsia X, and others. February 2, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands. Fixed Cost is high. Specific analysis has been conducted in order to analyse the market environment for AirAsia. The company cannot control a number of charges and costs which are regulated by government and airline authorities which may result in a significant loss in profits and consistency of the organisation. The organisational image is consistent and successful concerning the competition in the market. Competitive analysis is the process of researching and evaluating the competitive landscape of a business entity. Air Asia started with only 2 Boeing 737 300 series and started their first point-to-point flights. Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. Today, well discuss the swot analysis of AirAsia. Required fields are marked *. 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$ Browse marketing analysis of more brands and companies similar to Air Asia. 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. The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. 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