AirAsia with its low operating costs has a competitive advantage over its rivals. 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, Mahathir took the opportunity to off load debt laden Air Asia to Tony Fernandez.
With the philosophy of? Besides that, AirAsia also announced the flight frequency from Trichy and Kochi will increase from 11 times to 14 times a week.
Due to the increasing oil demand and speculation, oil prices have been increasing drastically. The buyer power is reasonably high: this is due to the access to price and other information through internet and mobile phones to potential customers allowing them to find cheap and affordable prices more easily.Airasia is strong in its branding and marketing strategies however due to they allow limited cost on their management and maintenance, customer satisfaction and reliance are low. Moreover, AirAsia has to be aware of the internet system failures that would seriously effect the operations for such a technologically reliant company. Besides that, the switching costs are low in airlines industries. 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, 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. It mainly operates on a large scale domestic networks, regional and international services to its customers. AirAsia flies to total of destinations. AirAsia Berhad also facilitates in operating businesses, related financial services and airline operation services. 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. Furthermore, because of high exit barriers, LCCs are forced to expand their business with providing services like hotel booking, cabs and other package deals. SWOT Analysis of Air Asia Strengths The company is observed to possess a significant reputation among the competitors, customers and the markets of the establishment.
AirAsia should work out to reduce the increasing rate of customer complaints on their service by allowing phone calling for easy reachable customer service. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services AirAsia, The primary product of this company is the low-cost services that are provided to the customers.
The increase in oil prices has critically impacted the operations of the organisation. Increasing globalisation has led to an increase in the lifestyle and financial condition of people.
AirAsia to increase KL-Balikpapan flight frequency.This shows a good sign for them as they would be able to figure out their strategy for their business in future. Besides that, the switching cost is high because the supply of aircrafts, fuel and sufficient workforce are pertinent to the airline industry. The company believes that customers are the key to their expansion along with their growth. Moreover, they also keep improving their website by helping to save the last search for the ease of searching experience of customers Corinne, Page 8 of 29 2. The company engages in anchor pricing strategy in its marketing mix. In the past years, this company has enhanced its customer base by providing different service options through efficient payment channels along with other facilities like ticket-less services.