In this section of the blog, we shall understand AirAsias marketing with the help of its STP (segmentation, targeting, and positioning) strategy. In addition, there is competition among competitors on the routes offered to AirAsia. Do check out our Free Digital Marketing Masterclass by Karan Shah. The airline brand should exploit these circumstances. The major competitors for Air Asia as per the market analysis are Jet Star Airways, Tiger Airways, JAL Express, and Air Arabia. Other than that, hes a fun loving person. Quizzes test your expertise in business and Skill tests evaluate your management traits. The following are strengths and weaknesses of AirAsia: 1. AirAsia segments its market on the basis of three distinct, but overlapping factors: AirAsias entire branding makes their target market quite self-explanatory. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. 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. Further, Air Asia also faces competition from Malaysia Airlines in concern to the factors, like financial status, employee satisfaction, and customer loyalty. This strategy encourages the customers to choose Air Asia over any other airline company. 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. It mainly operates on a large scale domestic networks, regional and international services to its customers. The Threat of Substitution The international airline market has sufficient low-priced airline options available for passengers to travel. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. Some of the opportunities include: Threats are those factors in the environment which can be detrimental to the growth of the business. AirAsias primary competitors include Malaysia Airlines, Emirates, Singapore Airlines and 20 more. As there are approximately 59 low cost airline operating in the industry,it is always easily for the customer to look for alternative. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). 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. Air Asia Revenue : RM 10,638 million (FY 2018) (9.6% increase YoY) RM 9,710 million (FY 2017) Competitive Analysis of Air Asia SWOT PESTLE The SWOT analysis of Air Asia is presented below: Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. The diversity results in critical issues and problems for AirAsia to manage and operate all its functions accordingly. Do check. In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. They may compete in term of their route offering that Airasia does not fly. Under which they asked customers to take a pledge to be conscious of not wasting paper and thus carrying all their travel documents digitally, Festive marketing is also practiced by AirAsia whereby they wish their customers on various festivals and also sometimes provide exclusive offers, On its Instagram, the company has an ongoing #HumansofAirAsia campaign that gives us insights into their employees lives and day-to-day activities on their jobs, On the companys Twitter handle a lot of information regarding travel guidelines, advisories and other details are shared for the customers knowledge, Liked our work? This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. AirAsia is already trying to achieve that by expanding their facilities to hotel bookings, tour packages, etc to try and gain some competitive edge along with diversifying their product portfolio. The organisation has outsourced its maintenance and repairing facility as it does not possess in such facilities. Today, it connects domestic and international flights to more than 165 destinations within 25 countries. 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. 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. Below are the top 3 competitors of Air Asia: 1. Use fundamental and technical analysis of AirAsia Group and its peers Please click here if you are not redirected within a few seconds. Well established LCC operating out of South East Asia, 3. Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. Back in the 1900s Thai National Airlines was the only airline that could fly in the main routes of Bangkok Chiang Mai with non-stop flights. Basic things to know before seeking help in assignment. They truly contribute their lifelong learning in allowing students to succeed in their academics. 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. It seems as the destination and customer market share of AirAsia is only limited to the Asian countries. AirAsia has also expanded its social media presence across other platforms including YouTube (@airasia), Twitter (@airasia), Weibo and WeChat. It is essential to choose the right set of employees for the organisation in order to maintain their position. Porters five force analysis for Air Asia is as under: Bargaining power of Supplier Analysis of the bargaining power of suppliers is crucial for any organisation, as with the help of this, an organisation manages the capital and makes decisions regarding financial management (Thomas and Housden, 2017). Strong Promoter 2. AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines SWOT Analysis is a technique for analyzing these four aspects for a business for better decision making and judgement of its current position. The company constantly invests in improving the facilities it provides to the passengers and has introduced facilities, such as in-flight meals, complimentary WiFi, entertainment facilities such as separate televisions for passengers, and seat options including flatbeds (Abdullah, Chew and Hamid, 2017). As reported in The Edge Markets in 2019, Khazanahs managing director Datuk Shahril Redza Ridzuan claimed that the airlines CASK was only 15 per cent to 20 per cent higher than AirAsia and was in fact lower than regional airlines such as Singapore Airlines, Thai Airways and Cathay Pacific. 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. It allows its customers to choose the services they want without compromising on quality. 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). It mainly constitutes of two major subsidiary airlines that includes MASwings and Firefly. 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! In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. The overall services that are provided by Malaysia Airlines and AirAsia have a tremendous difference. UNICEF collaborated with AirAsia to raise $ 128 million for the people who were affected by the earthquake in Haiti. This is due to Airbus is a UK based aviation company and their customer may come from around the world. Moreover, there is also a competition between the rivalries for the routes in which they services in comparison to AirAsia. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. Switching Cost is low. 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 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. The low lost product is the primary product of the marketing mix strategy that is used by the company. This comes with a lot of competition. According to an estimate, theannual revenueof AirAsia in 2020 was2844million MYR, and it has declined by76.02%. It has operations in over 25 countries and over 400 international and national destinations, 4. The organisational image is consistent and successful concerning the competition in the market. The cheap flight tickets are given to the customers on the basis of the demand in the form of promotional schemes. Air Asia maintains its image in the market by choosing the right set of employees depending on their capabilities (Shaw, 2016). The largest airline in Malaysia the business is known to be highly employee centric. The Indian market is highly price-conscious. 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. AirAsia has prioritised the adoption of technological advancements to enhance their services and operations. Furthermore, competitive analysis has also been conducted for AirAsia in this report along with marketing mix 7 Ps and SWOT analysis. Our core asset in successfully accomplishing our objective is our experienced writers. 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. Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. AirAsia is a Malaysian low cost and no-frills airline company, which has a unique slogan stated as Now Everyone Can Fly. AirAsia adopted the Computer Reservation System (CRS), which enabled it to introduce the first-ever ticket-less travel facility and also provides features such as advanced boarding passes and online ticket booking. WebAirAsias top competitors are Air India , American Airlines, Emirates Airlines , British Airways , Delta Airlines, Tiger Airways, Silk Air, Jetstar Airways, and many others. As AirAsia expanded its services, the company expanded its facilities, including travel AirAsia has expanded its routes to different countries all around the world including Indonesia, China, Singapore and the Philippines. Free resources to assist you with your university studies! Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which forces are weak. If you did, be sure to share, comment, and let us know! 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. They may compete in term of their route offering that Airasia does not fly. Their slogan Now Everyone Can Fly itself sets the tone for the brand. 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 AirAsia has been a successful part of the airline industry for over a decade. The company was established in 1993, and the official operation of the company was started on 18 November 1996. AirAsia is one of the largest low fare airline companies in Asia, which has been expanding its routes to different countries since 2001. The price will be cheaper if you book earlier. 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 Your topic helped a lot, Your email address will not be published. WebStep 2 Identify the competitors of Airasia and group them based on the segments within the Transportation industry. Air Asia is a low-cost airline headquartered in Malaysia. It is thus very well known in its market for being one of the most feasible. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Jetstar Airways 2. Concentration of Buyers power in many hands. Customers have access to market information. Similarity of product. 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. 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. The article below lists the Air Asia SWOT, competitors and includes its target market, segmentation, positioning & USP. The company engages in anchor pricing strategy in its marketing mix. Your email address will not be published. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. As there are no significant differences in the price compare to Air Asias competitor such as Tiger Airway and Jet Star as mentioned earlier, their customer do not need to spend more to shift to another airline. Let us now get into its marketing strategy. In contrast to this, AirAsia is offering more than 130 destinations that include the Middle East, Honolulu and the Asia Pacific. The company is constantly using innovative solutions to provide low-cost transportation. Features, such as improved WIFI and other entertainment facilities, can be improved with the help of latest trends and technologies in the IT industry. Very interesting and informative. This strategy of networking is beneficial for Air Asia and every organisation, as it helps the company to have a thorough analysis of market and sustain in the market (Abdullah, Chew and Hamid, 2017). Many airline companies have entered the airline industry and they have made the market very competitive. Jet Star Airwaysare considered as the safest low cost carriers among the 10 safest carriers in the airline industry of Australia. In this context, Air Asia will be focusing on the use of the strategy of service innovation as it is the best strategy to effectively implement the factor of providing new and enhanced services to passengers at low cost. Apart from that, AirAsia engages in popular promotions such as social media advertising, print advertisements, and simple but efficient billboard advertising. AirAsia is a reputed and leading Asian based airline company, which is headquartered in Malaysia by a government-owned corporation named DRB-Hicom. 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