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 company can increase its sales in these pandemic times as well by leveraging its low-cost flights. It employs an anchor pricing policy, which establishes a baseline for pricing all AirAsia-operated flights. Market segmentation is the concept where the potential target customers for any organisation are divided into groups or segments based on various characteristics. Your topic helped a lot, Your email address will not be published. Let us now get into its marketing strategy. The strengths of Air Asia looks at the key aspects of its business which gives it competitive advantage in the market. 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 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. 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). However, the company has employed more than20,000employees to manage its worldwide operations. Today it is one of the most reputed Asia-based airline companies. The company believes that customers are the key to their expansion along with their growth. Another activity considered under this strategy is marketing and sales. But the company is only operating its business only in 25 countries. 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). However, AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to the competitors in the airline industries. Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, and AirAsia India are its affiliate airlines, while AirAsia X, its sister carrier, focuses on long-haul routes. The diversity results in critical issues and problems for AirAsia to manage and operate all its functions accordingly. 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). AirAsia is one of Asias most successful low-cost carriers. The airline has four subsidiaries including Air Asia X, Indonesia Air Asia X, Indonesia Air Asia and Thai Air Asia. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors. 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. Build a competitive intelligence sales and marketing strategy based on the data WebAirAsia is largest player in June, with 35% capacity market share Indonesia: Easing restrictions as the country step into transition period. AirAsia X joins AirAsia Berhad and Thai AirAsia with stock listings. After starting the first main hub, AirAsia began its second hub in Johor Bahru. The route network of AirAsia is one of the largest in the world, which covers more than 20 countries all around the world. In Kuala Lumpur. The basic product strategy in its marketing mix is its low-cost air services. All work is written to order. Your email address will not be published. Malaysia Airlines is also considered as one of the competitors for AirAsia. Relative Price. The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment. Your email address will not be published. There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. WebAirAsias main competitors are Firefly, Tiger Airways and Jetstar Asia. The complaints received by the organisation are identified to be the consequences of low prices as the organisation may face critical problems in ensuring service and assistance with the low-cost flights. 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. Lets get into discussing their marketing efforts, starting with their marketing mix. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. AirAsia Airline As the best low-cost passenger. 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 This involves a detailed analysis of their actions and how these would affect the future strategies of AirAsia Flying Low Cost with High Hopes. The Marketing mix refers to the set of actions and tactics which a company uses to promote its brand. Relative insignificant influence of buyer to supplier. Knowing the increase of competition in the market, AirAsia applied the adaptation process (Hanan & Freeman, 1984) by expanding its operation to long haul services to various destinations. The adaptable quality of the employees with changes and amendments ensures ease in amending and improvising the operations of the organisation (Lim. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. The company was established in 1993, and the official operation of the company was started on 18 November 1996. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market.. History of Garuda Airlines. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. This LLC trend has saturated the customer market, and it has declined the overall profitability of AirAsia. Revenue performance has greatly improved with sales across the group up 57% this week versus the preceding week, supported by the latest Similarity in product offering. This may makes the industry very competitive. 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. We hope you found what you were looking for. 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. The bargaining power of buyers is strong when the switching cost of airlines is low. But of course, there exist many competitors that require constant evaluation of strategies. 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. AirAsia has 5 employees at their 1 location and RM1.84 b in annual revenue in FY 2021. Strengths. The company has partnered with the worlds most famous maintenance providers to ensure its passengers safety. Air Asia Competitor analysis In order to compete with AirAsia,. Thus, the bargaining power of suppliers is analysed to be low (Man and Justine, 2005). Itoffers a broad and innovative variety of distribution channels to ease the travelling and booking process. AirAsia can be accounted to lack financial assistance from organisations or sponsors which consequently minimise the investment opportunities for the organisation (Abdullah, 2010). They have official handles on all major platforms but for the purposes of this segment, we shall take a look at the main 3, which are Instagram, Twitter, and Facebook. 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). Malaysia Airlinesis a member of the oneworld airline alliance and it is also considered as the flag carrier of Malaysia which is head-quartered in Kuala Lumpur International Airport. Sponsorship is also one of the great marketing tools. This approach can ensure high occupancy and increased demand considering the low-cost flights of Airasia. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. 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. This increases the probability of people to avail of airline services frequently. Our academic experts are ready and waiting to assist with any writing project you may have. Concentration of Buyers power in many hands. 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. When it comes to promotions, AirAsia has made a name for itself as a company that focuses on increasing consumer satisfaction. Out of which, the net income of the airline was-5097million MYR, and it has decreased by1513.76%. The created segments consists of consumers who share similar interests, requirements and locations. In the AirAsia case study, we shall decode AirAsias marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors. According to a report by The New York Times in 2007, it described AirAsia is the low-cost pioneer in the airline industry. AirAsia is a global airline with operations in more than 160 destinations in 25 countries. Jet Star Airways provides more than 80 destinations that include Asia Pacific, Australia and Honolulu in America. Jetstar Airways 2. The branding of the logo of Air Asia is essential for them. Besides @flyairasia and 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. 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. Its routes include both domestic and international flights. Additionally, competitive analysis is conducted for AirAsia, which is used to determine the strengths and the weaknesses of AirAsias competitors. 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). The company develops the products and services that are convenient for its customers (Mele, Pels and Storbacka, 2015). AirAsia provides service packages to its customers at a very reasonable charge that is affordable to the customers in comparison to JetStar Airlines The company also engages in direct service development strategy by treating employees as an essential part of the organisation. Student Life Saviour is a prominent name in providing assignment, essay and dissertation help services to students. Interested in learning more? Today, it connects domestic and international flights to more than 165 destinations within 25 countries. Along with these improvements, if AirAsia continues to deliver to its target market effectively, it will surely maintain its differentiated position in the industry. Thai AirAsia faces new competitive threats in Thai Lion and Thai VietJet. 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 confronts various complaints and issues from the customers who are numerous to resolve instantly and result in customer dissatisfaction. AirAsia is known for its low fares and no-frills policy. In Air Asia SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. The airline claims No Admin Fee, but all the services provided by AirAsia are not free, it has some fees for some services. Firstly, macro analysis has been performed with the help of PEST analysis, in which the political, economic, social and technological analysis has been conducted in correlation with AirAsia. Diversified in product offered. This company also operates through affiliated airlines, such as Thai Air Asia, Indonesia Air Asia, Philippines Air Asia. 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 Justine, 2005 ) diversity results in critical issues and problems for AirAsia, which covers more than 165 within! Analysis in order to compete with AirAsia, which is used to determine the strengths of Asia! 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