External and Internal Factors of Airline Company : Report

Extended business
project

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of WizzAir ..................................................................................................................1
Strategic Position of WizzAir .........................................................................................................1
Internal analysis – SWOT ..........................................................................................................2
External analysis of WizzAir .....................................................................................................4
Recommendations and Conclusions ...............................................................................................6
REFERENCES ...............................................................................................................................8
Books and Journals ....................................................................................................................8

INTRODUCTION
Airline industry is one of the fastest growing sectors in present business environment or
in global market. The present report is in context of WizzAir which is a Hungarian low cost
airline headquartered at Budapest. The purpose of this report is to understand various factors
such as external and internal factors that affect overall functioning and performance of the airline
company. The study will also focus on methods used by WizzAir to develop effective strategy
for gaining competitive advantages in the market. Furthermore, the report will also provide
beneficial recommendations in order to achieve success and to sustain in competitive global
market.
BACKGROUND OF WIZZAIR
WizzAir was launched in June 2003 when six individuals with a high airline experience
and track records joined Jozsef Varadi who is the chief executive officer of company. It became
a registered airline company all ready to fly. WizzAit is a low cost Hunagarian airline which is
also known as WizzAir Hungary ltd. presently it is offering more than 500 routes from almost 27
bases in various regions such as Lublin, Poznan, Katowice in Poland, Debrecen and Budapest in
Hungary, Varna and Sofia in Bulgaria, etc. Company is a value oriented airline that focuses on
innovation throughout the way of a customer's journey. WizzAir is endlessly looks for potential
opportunities in order to provide low cost air transport and expand its network of destinations.
Company offers flights to a mix of primary, secondary and regional airports providing fast and
friendly customer services at low cost.
STRATEGIC POSITION OF WIZZAIR
In order to determine the current strategic position of WizzAir, both internal and external
environment will be analyzed. Competitive advantage has been considered in relation to the
business strategies. Number of strategies are applied by WizzAir in order to gain competitive
advantages in the market. These strategies are affected by many types of elements in the internal
as well as external business environment. It is essential for each and every organization to gain
competitive advantages as it helps in sustaining an impressive position in the market.
1

Internal analysis – SWOT
In order to analyze the internal business environment and factors inside the company
SWOT analysis can be used. These factors are affecting or influencing overall functioning as
well as performance of WizzAir
Strengths
1. It has very low unit cost -According to CAPA CASK database WizzAir has the second
lowest unit cost among all European airlines. Along with Pegasus and Ryanair, WizzAir
is categorized as one of the three low cost airline in Europe. The main element behind
this low level of cost per available seat kilometer is a very effective business model
focusing on high labor productivity, secondary airports and high average aircraft
utilization.
2