In this documentation, this assignment take look at SWOT analysis of Wizz Air Airline Company in the European market effectively. Nevertheless, the business has large numbers of opportunity in the industry in order to growing its business properly. Beside from it, this assignment also review about appropriate opportunities of the firm in the industry by which they can enhance its brand value in the nation sufficiently. Moreover, this assignment also refer to explanation of appropriate threats and weaknesses of the business in the industry which may be caused of negative effects on the business performance in the industry effectively. Wizz Air Company need to consider all these factors in the European market in order to gaining proper success in the market and sufficiently run of their business in the industry relevantly as well.
SWOT ANALYSIS OF WIZZ AIR AIRLINE COMPANY:
Definition: SWOT analysis is a business administration program that stands for strength, weakness, opportunity and threats of a specific organisation in the industry properly. SWOT analysis is an essential approach for a company in order to identification of proper growth of organisation in the industry and also recognise its comprehensive strengths and weaknesses effectively and make distinguish between them in respect to find out the best suitable decision for firm in order to getting success efficiently (Dey, 2015).
SWOT analysis assist a business professional to cut a practical corner of business in their sector effectively. This is most appropriate things for an organisation in order to identify the relevant opportunities in the market sufficient and according to them their professionals formulate effective strategy at the workplace in sufficient form. This is an assessment of entire company in the industry in relevant manner in order to identify proper development of some importance portions of business in which relevant changes needed for sustainable development and organisational growth in the market in proper manner. In case of Wizz Airline Company, it is needed to have proper SWOT analysis of the company in context of identification of some essential areas of the business by which they can achieve more growth in the industry in relevant manner (Holloway, 2017). The assessment of the company examine that, the company professionals could make proper utilisation of their potential in the market concerning about to understanding the industry in relevant formant and also identify the weak areas of the business in which sufficient modifications are needed to be done in order to getting proper issues in the company in appropriate ways. Wizz air’s company success has been built organically and with a largely stable management team under founding CEO Josef Varadi, The SWOT analysis of the company as following:
WIZZ Air airline strength:
Wizz air has very low unit cost: Based on its FY2015 results, Wizz air is second largest lower Prices Company in the European airline market effectively. Wizz air organisation is one of only three ultra-low costing airline company in Europe efficiently (Halpern and Graham, eds., 2018). This lower cost is being analysed by its professionals at per available seat on the kilometer basis on the highly efficient business model in the industry properly. The firm have largest airports in the company where large numbers of aircrafts are being utilised in order to increase revenue of the company efficiently. They have high level of labour productivity at the workplace and high rate of employment in the industry appropriately.
Wizz Air offers low fares: As per its lower costing approach in the business it has lower fare strategy on all airline services furnishing by the company in sufficient manner. They are furnishing attractive lower rate fares less than its competitors in European market effectively. From the analysis, it has founded that, the company’s passenger numbers are increasing frequently and they have average growth rate of 31% per annum effectively. In this case, only Pegasus and Ryanair are in the sale segment as Wizz Air Company in order to provision of lower unit cost of airline services properly (Thomas, 2015). The organisation is generating wide range of revenue from the market effectively and its conformity approaches of lower prices keep it on tract to offering its airline services at lower prices in the market properly.
Wizz Air has the leading market share in its chosen market: From the established date of the company, till now, the airline carried out its 100 millionth passenger effectively. However, this is only the company in European market which is combines operating across the country in order to getting more revenue from the market sufficiently. Eastern Europe with the destination in Western Europe, it has large numbers of passenger which makes it leading player in the market sufficiently (Eriksson and Steenhuis, eds., 2015). As per the analysis, it could be said that, Wizz Air Company is the biggest airline by seats between central to Western Europe and also just ahead from Ryanair Company in the airline industry of the nation effectively. The biggest full services airline between the two geographic sides of Europe is Turkish airline and all of the countries which is getting touch of Turkey country efficiently. Thus, it could be said that, the company has largest numbers of market share in various country in which it furnishes its effective services in the country sufficiently. With the assistance of this approach, it is generating high amount of revenue and building more complex competition in the market appropriately.
Wizz Air’s financial performance is strong: As per the analysis, it has been examined that, Wizz Air Company is offering lowest costing of its airline services in European market effectively and it has been developed the good track of profitability in the industry efficiently. In the previous year its positive operating profitability was 13.9% operating margin was send to Ryanair in the industry efficiently (Ahmadi, Dileepan and Wheatley, 2016). Its EBITDAR margin of 27.8% was just ahead of Ryanair’s 27.1% effectively. So it could be said that, they are giving existing competition to their major competitors in the market and with the assistance of strong profitability in the market, the company has been reached to string portion of their impressive financial positioning in the market properly.
Weaknesses of Wizz Air Airline Company:
Earnings seasonality: Wizz air Airline Company is vert depended on the summer month in the country effectively. The company is highly seasonal and as this industry is depended on highly summer time, the firm has also high rate of customers in the summer half year sufficiently. There are several places in the UK, which has high rate of visitors on summer time, and most of peoples comes in the nation of spending quality of time on simmer holidays effectively. From the analysis, it has been seen that, in case of summer time from July to September to offset a loss making winter which start from October to march efficiently.
Wizz Air operates with lower frequencies than its competitors: Wizz Air Company has major weakness which is, the company is offering lower numbers of frequencies on its routes than its competitors in the market in more relevant form. This could be find out in such situations in which the industry is getting large number of issues in the market effectively. Wizz Air organisation operates 352 daily flights on 380 routes in the 12 months to jun-2015 effectively. On average of 0.9 flights per route efficiently (Xu, 2015). The company has lower customer rate and low range of frequency than its competitor’s services in airline market of the country properly. It is being cause of reducing the productivity and profitability of the business in the market in more relevant format. This is most crucial disadvantage of the company which affects its profitability in the market in sufficient form.
Wizz Air opportunities:
Wizz Air has further growth potential in Central/Eastern Europe: Wizz Air has the target market of central Eastern Europe offers an effective opportunities for gaining proper potential growth in the market in relevant manner. This is one of the most emerging market in the country which has high potential rate of growth in the industry in proper way. Apart from it, the UK is one of the largest economic growing country in the world efficiently. It has lower rate if potentiality for air travel than Western Europe efficiently. This is one of the reason of increasing economic growth of the business in the nation properly (Flouris and Oswald, 2016). They have large numbers of investment in the company which is also one of the biggest opportunity for the business to getting proper capital to enhance their business quality in the market relevantly. The airline industry has many reason to growing in the market effectively and they have large numbers of companies in the market which is generating potential outcomes from the market in relevant manner. Numerous types of stakeholder are increasing in the market who wants to invest in the airline air travelling company in the nation efficiently. So the company can get this chances to raising its capital base in order to getting enjoyment of large numbers of economies of scale in the industry efficiently.
Beside from it, they have wide range of opportunity for getting proper new products and services could have a substantial below on the profit of the organisation in the market. They have opportunity to making utilisation of innovation on company’s new products and services which attract their customer in the market more in case of increment in its productivity and profitability of the business in the market efficiently.
Wizz Air has further ancillary growth potential: From the above analysis, it has been noticed that, Wizz Air airline business has wide range of effective potential opportunities in the market for growing in the business in relevant form. Nevertheless, it has potential chances to getting proper attraction of its various stakeholders in the market who wants to invest in the business entity sufficiently (Alexander and Merkert, 2018). There are numbers of business are growing in the market and making full competition in the airline industry in the UK properly. With the assistance of various management techniques, they could reduce the costing prices on high rate of selling tickets on various routes effectively. Technological advancement and various investment in the information technologies are most appropriate opportunities that could greatly assist the organisation for reduction of operating cost of the business in the industry in relevant ways.
Wizz Air threats:
External events might be of concern: In case of Airline Company, its aircrafts are major elements of business which assist to operate its operational activities in the business efficiently. There are some natural phenomena such as earthquake and volcanic, flood etc. all of they have some issues which is making major cause of getting crash of air crafts in the industry efficiently. Apart from it, most of the time, it has been seen that, terrorist highjack the plains many times, this is also a one of the most prime cause of threats of the company in the industry properly.
Large numbers of legal and environment issues: In case of aviation business, there are large numbers of legal and environment factors affect the business negatively in the various countries around the world. Wizz Air business professionals need to consider various legal form and government rules in case of proper running of its aviation business on various countries’ routes sufficiently (Qian, 2017). Apart from it, weather of country is getting changes frequently and most of the time on heavy rain seasons and storming season, they need to get changed and stopped its various routes airline crafts effectively. This is also a one of the biggest environment threats of the company in the industry in sufficient level. Environmental issues making effect on changing in its aircraft schedules effectively which is making negative influence on profit generation from the market sufficiently.
From the above analysis, it is concluded that, Wizz Company is still need to making in some efforts for gaining proper growth in the market and getting more profitability in the industry in sufficient form. The airline company is also able to offering lower rate of fares, which increase its demand in the nation properly. Beside from it, this assignment also concludes about Wizz Air is one of the leading airline company in the European market, they have large numbers of effective geographical market in the country in which they are generating effective revenue and the company is also facing large numbers of competition in the market sufficiently.
- Dey, K., 2015. SWOT Analysis of the EasyJet Airline Company.
- Holloway, S., 2017. Straight and Level: Practical Airline Economics: Practical Airline Economics.