SWOT Analysis: Situation Analysis For Air Asia

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3. Situation Analysis (SWOT Analysis) for Air Asia. As marketers, they have to understand the current and potential environment that the product or service will be marketed in. A situation analysis is referred to SWOT analysis that. SWOT analysis is an important step in planning and placing its value is often underestimated despite the simplicity in creation. The role of Air Asia’s a SWOT analysis is to help identify and understand the key issues that are affecting their airlines business. The firm have to identify its internal strengths (S) and weaknesses (W) and also examine external opportunities (O) and threats (T).

The first of SWOT analysis for Air Asia airlines is the internal strengths analysis. There are some strengths
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Fuel price that have been increase in society and competitor eyes may seem like a threat for Air Asia. But Air Asia is a low costs leader, it cost will still remain as the lowest among the other regional airlines. This is because Air Asia is an upper hand among the others. Hence, Air Asia has great chances to attract parts of the existing consumers of full service and customers that prefer low cost from other airlines. However, there will be also some decrease in overall travel performance which includes casual or budget travellers. Besides, Air Asia have created some opportunity to partner with other low cost airlines as Virgin to tap into their existing strengths or competitive advantages. For examples brand name, landing rights and landing slots in other meaning is time to land on the ground. Meanwhile, the population of middle class consumers has been continuously increased and hence it can create a larger market and a huge opportunity for all low costs airlines in this region including Air Asia …show more content…
There are more no-frills airlines may take off in Air Asia to meet increasing consumer demand following the success story of Malaysia’s budget carrier Air Asia. Singapore Airlines plans to launch a budget carrier because they see the success of Air Asia airlines that use low cost operations. They know how big the market is and how good the opportunity is in Asia. The Air Asia also faced certain rates like airport departures, security charges and landing charges are beyond the control of airline operators. These costs that have been mention is a serious threat towards the airlines that intention to maintain their low costs strategy. Air Asia’s profit margin is about 30% and this has already attracted many competitors from same industry. Furthermore, there are lots of the small airlines competitors provide full service airlines have or in planning to create a low costs subsidiary to beat down Air Asia airlines. For example, Singapore Airlines has created a low costs carrier Tiger Airways. Air Asia users’ perception that budget airlines may compromise safety to keep costs

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