Rivalry In Asia Airlines

Rivalry among existing firms

AirAsia competition between existing airlines is high. This is because lot of airline emergence that offer low fares such as Tiger Airways, Jest Star Airways, Malindo, Firefly and other. Hence, they will try to make a massive advertising and promotion to attract more customers by providing better services and products like giving more discounts, better deal, new course offering that AirAsia does not provide. In addition, they also will compete in terms on service that they give to the customers such as providing scrumptious meal, courtesy from the employees, the availability and speed of internet on board and others.

Also, the products and services offering is similar with other competitors. This is why the rivalry

The only differences between airlines industry is only in terms of their package deal and offering. For example, if the customer does not intent to take travel agencies they might look for AirAsia services whereby AirAsia provide holiday packages that comprising flight ticket, accommodation and travel guides. But the most crucial thing that customers look forward is the place of destination offered by the airlines which indicates the high bargaining power of purchasers. Apart from that, it can be seen that there are low changes costs as the price offered does not have much distinction and it will lead customer to pick the airlines that suit with their time schedule. Another factor is the amount of consumers that purchase airline tickets came from middle class income. Due to individual earning, they will tend to choose airlines that offer cheap and affordable ticket fees compared the one who sell it in expensive and indirectly it will lead to high bargaining power of buyers. Next, nowadays with the advancement of technology and social media make the consumers easily to access the current information regarding the tickets, package, promotion, discounts and others from airlines. They will keep getting the notification and will be alert regarding the airlines. Of course the power of buyer will be

For AirAsia Company, they choose to use Airbus as their main products to fly everywhere such as Airbus 320 and 321 Neo. In addition, AirAsia also need to depend on Airbus engineers to seek some advice and information for the maintenance of the aircraft as they are the sole of Airbus manufacturer. Hence, it shows that the aircraft supplier will have high bargaining power since all airlines industry will rely on their products. In contrast, in term of fuel, good, product, and food supplier it is actually depends on the economic and market conditions. For instance, if AirAsia have a good relationship with their own supplier, of course they will not budge to choose other supplier since they have good term relationship. Further, previously AirAsia does use Boeing aircraft and later they decide to change their aircraft to Airbus. If AirAsia want to switch to Boeing again, definitely they need to spend more money to train their employees in operating the aircraft as Airbus and Boeing system is totally different. It does show that the supplier have strong bargaining power for airline