1. Situation Analysis a) Company History Air Asia is an ease aerial shuttle organization which was secured in 1993 with its headquarter in Malaysia and found by Tony Fernandes in 2001. The organization has been developing and changing a ton with the title of 'World's Best Low Cost Airline' in the yearly world carrier study by Skytrax for consistent 5 years. Presently they flight 25 nations and 78 goals with partner organizations Thai Air Asia, Air Asia X, Philippines Air Asia Inc and Indonesia Air Asia Philippines Air Asia Inc. Air Asia X was secured in 2007 which flies long separation with ease by decreasing complex code imparting and additional costs for superfluous administrations. They continue putting endeavors to give both sensible cost
However, the airline industry increases air traffic to smaller airports which benefit Airbus competitors that were building midsize, wide-bodied planes carrying over 300 passengers (Gordon,2018). In 2000 Airbus was 80% owned by the European Aeronautic Defense and Space company and 20% by British BAE Systems (Pitt, Koufopolulos,2012). This helps lower the cost for the consumer and fight it, competitors, as the European Union gives aid to Airbus for their acquisitions. For the consumers, the lower the cost of acquisition is a good entity. Consequently, for Airbus biggest competitors, Boeing, responded from Airbus aircraft by flooding the market with mid-size planes to help the increased volume of air traffic (Hambug,2017).
Compare & Contrast of Air Asia’s strategies with Malaysia Airlines Strategies Airasia and Malaysia Airlines are also Malaysia based Airlines. Malaysia Airlines is also the senior and national airline in Malaysia, compare to Airasia Airlines. Besides that, Malaysia Airlines is more successful in market. If compare to their strategies on both Airlines, they have some similarity and dissimilarity of strategies on both Airlines. Our company also doing the low cost strategies while customer purchase our company local
What sets competitors apart in the airline industry is how they get their customers to their destination. When coming out ahead of their competitor’s airline companies must focus on three areas; competitive differentiation, service quality and productivity. When an airline company focuses on improving in these three fields they can increase their outreach and customer preference. The airline industry is also known for its nonlinear pricing because they sell economy, first class, business class etc. tickets and at different prices before a flight.
3. Global Marketing and Supply In terms of prices, Air Asia offered cheapest prices as it is affordable for all level of income. At the same time, they also provide comfortable flying experiences. The customer can book the tickets through online. Then, the company provided a different self check in styles in order to ease the process done by the customers.
This could be in form of the airlines offering their customers a travel package which includes accommodation and air tickets. The loyalty formed between these two parties would allow the airlines to negotiate room rates . An example of this would be with the Air Asia airline. When the passengers purchased tickets online, Air Asia often includes special offers of accommodations at the destination chosen and with the loyalty programme conducted by Air Asia, hotels that are associated with such offers would be more confident as it ensures a steady stream of potential customers. As for the bulk purchases or tour groups, their side would certainly be booking a handful of rooms making them eligible to negotiate prices and obtain lower hotel tariffs.
Thus, the power of the suppliers is high, since the suppliers have a grip on the market due to the huge demand of their manufactured products. Moreover, suppliers can affect the industry through their capacities to raise prices or reduce the quality of purchased goods and services. Bargaining Power of Buyers The buyers in the airline industry are demanding more and better quality services .The bargaining power of buyers in the industry is high due strong as low switching costs and plethora of options in the market. Now, e-ticketing has improved the chance and flexibility to search for different airlines companies leading to down word cost pulls and upward services push. Furthermore, it eases of switching between different airlines companies.
Topic Paper 3 How Boeing and airbus approach the market place? Usman Ali Student ID- 2395896 Contents 1. History of Boeing and Airbus 2. Competition and market share in airline business 3. Competition and market share in manufacturing business 4.
Thus, it is safe to say that there is low-to-moderate bargaining power of buyers in this sector Bargaining Power of Suppliers The three main costs for the airlines are fuel, labour and Airport charges. Fuel efficiency depends upon various factors, like the type of carrier and the distance travelled. Labour, on the other hand might have high bargaining power but Ryanair
Besides that, Air Asia mission stated that they yearn to create a globally recognized ASEAN brand by making the low fare model possible while providing the highest quality of services and products. As Air Asia continue putting effort in promoting air travel, they also bring excitement to their customers by providing innovative and personalized services. As the owner of Air Asia, Tony enhance their customer service by providing his employee a decent working environment so that his employee feels motivated. With the continuous effort of Air Asia they had succeeded in expanding their business by venturing into various Asia countries and set up subsidiaries such as Thai Air Asia and Indonesia Air Asia (Celine, 2013). B)