International Business Management: Wizz Air Case Study

INTERNATIONAL BUSINESS
MANAGEMENT

Executive Summary
Airlines are one of the main sources of fast and easy transport in today’s world. Wizz Air
is low cost airlines which are headquartered in Budapest. The airlines provide its services in
many cities across Europe and also to some more destinations. The evaluation on company’s
domestic and international operations and various environmental trends is given. There is a
discussion on ethical challenges faced by the airlines and the choice on selection methods.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
A: Current global operations and international strategy..............................................................1
B: Country selection methods......................................................................................................2
C: Macro environmental trends...................................................................................................3
D: Operational and trade factors..................................................................................................5
E: Ethical issues...........................................................................................................................6
F: Entry modes discussion and justification................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International business management explains how a business understands the global
environment and its affects on the management of the business in the international market. The
chosen company for this project is Wizz Air which is an aviation company. This project
discusses how the company utilizes the Uppsala method which describes the low market
commitment of a company for entering the foreign market. This project discusses the global
operations and the international strategy of the company in the foreign market. With the help of
this project the methods which the company uses for selecting the country is also discussed. In
this project the macro environment trends are evaluated for the company. This project also
discusses the ethical issue which the company can face. With justification this project discusses
entry modes for this company in the countries.
MAIN BODY
A: Current global operations and international strategy
Wizz Air is an aviation company based in Hungary which is looking to expand its
business in the foreign markets of the world (Szabo and et.al., 2019). The method which this
company is going to use is the uppsala method which describes how the company will enter a
market by giving low commitment to the foreign market. This company has had difficulties
during the pandemic in which it had to face many challenges in its business operations.
However, currently this company is clearly at far better position for tackling the future
challenges it might have to face in this year. The international strategy of this company has been
very robust. The company has been seen very determined for expanding its business in other
countries. Although the method which is utilized by the company is about putting low
commitment but that has not seen any affects on the determination level of the company
(Traneva and Tranev, 2020).
Even though, the capacity of the passengers in the flights of the company was reduced by
almost 80% the company was still keen on becoming lowest- cost flights in Europe (Loh, 2020).
The expansion began when the company started to expand the network route of its flights. There
were high risks in this expansion which the company was willing to take as it had incredible
amount of cash reserves. Robusting the business model of the company is the current plan for the
future of the company in international market. The Hungarian company is preparing itself to
diversify its market in Europe and other countries once the restrictions due to covid-19 are lifted.
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