Like Manchester United, Queens Park Ranger, Jamshedpur FC, Singapore national football team, Malaysia national football team, and others. IT infrastructure of the organisation is utilised with a remarkable approach which enhances the operations and management of the organisation. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. Fixed Cost is high. Rise of Other LCCs in Market. 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. The biggest competitors of AirAsia though, are Malaysian Airlines and JetStar Airways. in the worldTherefore, in the increasingly competitive market, AirAsia flies to more number of destinations in comparison to its competitors. Moderate Portion of buyers expend on airline. High numbers of Competitor. 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). AirAsia focuses on delivering accessible promotions, in which customers are aware of new product offers with minimal company intervention through simple tools such as emails. 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. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. 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. 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. The other supplier such as fuel supplier, merchandise supplier, or food supplier may be depend on market condition. 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. 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. 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? KLIA-Singapore is also served by four Singapore-based carriers Jetstar Asia, Tigerair, SilkAir and Singapore Airlines. 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. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. Lets see how they compare amongst a few key indicators. With the increasing number of services by different competitors, AirAsia has also expanded its facilities including the tour packages and hotel booking services that help the company to sustain in the market. AirAsias positioning is very clear in being low-cost. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Management of costs: Air Asia is finding it immensely difficult to manage the fluctuations in costs of In fact, AirAsia has sponsored many international events and teams to give exposure to its brand name. Lets get into discussing their marketing efforts, starting with their marketing mix. The 7 Ps of the model are price, product, promotion, place, people, process, and physical environment (Fine, 2017). In addition to this, various political factors can be highlighted by influencing the operations and management of AirAsia which have been mentioned below. Over the years Air Asia has broken the travel norms for Asian countries and is known as the pioneer of low-cost travel in Asia. 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). As the rivalry is strong, Airasia may constant in price reduction to compete with them. High Switching Cost. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. The marketing mixs 7 Ps model is a marketing strategy tool that is used in a business in order to gain the feedback from the market in relation to marketing objectives. They have achieved effective targeting to this segment by making their brand synonymous with low-cost services. Use fundamental and technical analysis of AirAsia Group and its peers Please click here if you are not redirected within a few seconds. Learn how your comment data is processed. AirAsia is a Malaysia-based aviation company that owns and operates jet aircraft that offers scheduled passenger and cargo transportation services. The portions of income of an individual earns is the factors because when the portion is high, the more customers will look for cheaper price, hence the bargaining power of buyers will be strong. Some of the threats include: If you liked this article, we bet that you will love the Marketing91 Academy, which provides you free access to 10+ marketing courses and 100s of Case studies. 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. There are several companies associated with AirAsia including AirAsia X, Tun Hotel, Tune Monkey, AirAsia Berhad, Thai AirAsia Co. Ltd., AirAsia Japan Co., Ltd., PT Indonesia AirAsia (India) Limited. Strict regulation and prioritisation by the UMNO (United Malays National Organisation) authorities to implement uniforms for the hostess. Heres the swot analysis of AirAsia as follows; AirAsia has a large fleet size comprising300aircraft. He has been a guest speaker at prominent colleges in India including IIMs[Read full bio], Your email address will not be published. A Marketing mix mainly focuses on the 4ps of an organization, which are Product, Place, Price, and Promotion. Concentration of Buyers power in many hands. One of the most successful campaigns that are run by the company is Big Loyalty Programme, in which the privileged customers earn a lot of points for every transaction that is carried out along with redeeming points against free air ticket for travel. This has been possible due to the companys relentless communication through various marketing channels. The airline brand should exploit these circumstances. The company will increase the current IT facilities used in the aircrafts to enhance the facilities provided to the customers. 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). The purpose of this report is to examine the market environment for AirAsia, which has established its business in Malaysia. The bargaining power of buyers is strong because most of the customers for Airlines Company are individual travellers instead of travel in group. Besides @flyairasia and Before we get started, lets get to know the company a little more. Do essay writing needs professional writers? Get best assignment helper in Malaysia as offered by Student Life Saviour to ensure best grades in all Malaysian assignments. The importance of pricing strategy is to know the strategies that are used in the market and to analyse the rivals that are present for Air Asia n the airline industry (Shaw, 2016). 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. Best regards from Kazakhstan.My name is Ainash. Switching Cost is low. For example, they had a #responsibletraveller campaign on Instagram. Air Asia can also implement a cost leadership business strategy. 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. The competitions advantage is the centre of a companys performance to face a direct competition. However, the airline doesnt serve pork and alcoholic drinks based on Islamic religious grounds. Air Asia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The threats in the SWOT Analysis of Air Asia are as mentioned: 1. The check-in services in Malaysia Airlines are very convenient and comfortable as compared to AirAsia. Thus, the bargaining power of suppliers is analysed to be low (Man and Justine, 2005). AirAsia has been facing the competition with the varied existing low fare airlines that include Jet Star Airways, Tiger Airways, JAL Express and Air Arabia. It works towards providing the highest quality products by making technological advancement to reduce cost and enhance service levels. The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. The two closest competitors that are considered against AirAsia include Jet Star Airways and Malaysia Airlines (AirAsia, 2018). Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest Jet Star Airwaysis a low cost Australian airlines services head-quartered in Melbourne. Air Asia is a low-cost airline headquartered in Malaysia. The following are strengths and weaknesses of AirAsia: 1. Start-up Cost is high. AirAsia managed to become one of the most popular and profitable airline companies in the world by implementing visionary leadership and innovative business approach. We hope you found what you were looking for. 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. Now, the brand should amplify its marketing and promotional campaigns to attract the Indian price-conscious market. In order to build buzz, cheap flight tickets are given out based on demand in the form of promotional schemes. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. Interested in learning more? 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. 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. Other than that, hes a fun loving person. 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. Points to consider while selecting a topic for dissertation help. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Another strategy that the company will implement in the future is networking. Webprice wars with competitors, taxes and duty imposed on the firms products. 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. 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. The company AirAsia, demographic segmentation is preferred. Do you have a 2:1 degree or higher? Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. 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