Wizz Air's Strategic Analysis: Challenges and Growth Options BM6024

This report provides a comprehensive analysis of Wizz Air's strategic situation, focusing on the challenges it faces in the European external environment, including the impact of the Covid-19 pandemic, global economic slowdown, terrorism threats, and technological advancements. It examines the company's internal business situation and resources, highlighting investments in expansion, fleet upgrades, and team development, as well as its strong financial position and recovery strategies. The report also analyzes the competitive environment, identifying key competitors and the need for Wizz Air to adapt its business model to succeed in markets like Abu Dhabi. Finally, it explores strategic options for future growth, such as capitalizing on the demand for healthy food and safe travel, developing attractive holiday packages, and tailoring its services to local preferences in international markets. The report concludes that careful evaluation of the external environment and strategic adaptation are crucial for Wizz Air's continued success.

Organisational strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
1)Analyse the key challenges facing the company in the external environment in Europe? .....3
2)Analyse the internal business situation and resources of the company in Europe?.................4
3) Analyse the competitive environments of the company in Europe?......................................6
4) What strategic options and directions could the company pursue for the future growth both
in Europe and international Market?...........................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
It is very important for the organisation to develop effective business strategies because the
present business environment has different threat which impact the organisation negatively. It is
very important for the organisational to evaluate the environment and develop the measures to
deal with these issues effectively. The organisation which is chose here to demonstrate this is
Wizz air. It is a low cost airline which provide airline facility to their customers at low prices in
comparison to their to other airlines. It is require to address different challenges which the
management of organisation faces in external environment. It is also require to address the
internal condition of the company and the future growth factors.
TASK
1)Analyse the key challenges facing the company in the external environment in Europe?
It is very important for the management of Wizz air to analyse the challenges and threats
which are present in the external environment so that the effective strategies can be developed by
the management to deal with these issues (Maylor and Turkulainen, 2019). There are many
issues and challenges which the aviation industry faces in their business operations. These
challenges has impacted the business negatively and becomes threats for the growth of the
organisation. The brief discussion related to the challenges facing by management of Wizz air in
external environment of Europe are given below:
Covid-19 pandemic
It is one of the most unlike factor which impact the business of all the organisation of the world
and aviation industry is the one which is densely impacted from. At the time pandemic, the
government of the respected countries declares the lock down of their states and restricts the
entry and exits path. The result of this decision that the level of passengers travelling by airways
becomes zero and their revenue become nil. It the most challenging phase which the
management of Wizz air deal with. The chairman of the company has said that it is the worst
situation which the company faces in 75 years. The negative impact of the same are as follows:
 The business model of the company are on the edge of declined.
 The cost of maintenance becomes high.
 The revenue becomes nil which will become the threat for salary of the employees.
Global economy

The greatest impact of the covid pandemic are on the global economy under which the
pandemic enables the economy to face extensive slowdown and reflects negative growth. The
main reason for the slowdown in global economy is the stoppage business wheels due to
pandemic. The slow down of economy impact the business of Wizz air very badly.
Terrorism
One of the biggest threat which aviation industry faces in their operation is the increasing
number of terrorism cases which becomes the matter of discussion. There are many cases are
listen that the terrorist high-jack the flights for their personal agenda. It is matter of passengers
security because it becomes harmful for their life. It is essential for the management of Wizz air
to develop effective security measures in their flights which impact the cost of the airlines.
Technological advancement
The most important and fastest development are seen in the sector of technological advancement
under which the new and innovative technology came in existing daily. It is beneficial for the
aviation industry as it promotes the safety and security and also the comfort of the messengers.
These technologies require huge amount of funds which becomes the challenge for the
management of Wizz air because it impact the cost structure of the company. The unavailability
of these technologies can develop a threat of loosing competitive advantage from the industry.
2)Analyse the internal business situation and resources of the company in Europe?
There are many challenges that the management of organisation deal with in the external
environment. There is also some important business issue and situations are present in the
internal environment of business (Chin and Md Yusoff, 2019). Many strategies and plans are
developed by the management of Wizz air to deal with the issues created by covid pandemic.
The management of the company are invested their time and resources in three main
sections which are given below:
1. The management of the organisation invested the huge amount of their profit in
the process of expansion and diversification. The number of announced bases was
25 in the holding of company but after the huge investment these bases are
increased to 43 which provides many benefits to the organisation. The
management of the company established their existence in the country of Abu
Dhabi and becomes the national airline of the company. This country is most

popular for travelling and large number of passengers travels to the country which
will become the great sources for the income in future.
2. The organisation continue their investment in their fleet and acquire new and
advanced aircraft. It is beneficial for the organisation to have new and advanced
aircraft because it brings new and advanced technology in the workplace. This not
only the easy the work of employees also attract the passengers towards the
airlines. Company has most efficient fleet in Europe which helps the organisation
to achieve the competitive advantage.
3. The management of the organisation focuses on the development of effective
team and board in the organisation. The development of team plays important role
in the success of the organisation because it brings creativity and innovation in the
organisation.
The balance sheet of Wizz air are very strong which enables them to deal with the issues
created by the pandemic and also enables them expand their business in different countries of the
world. The recovery from the impact of covid are not easy but the strong financial position of the
company makes possible them to recover. There are three points which reflects the recovery of
the company from the covid and the brief discussion related to the same are given below:
1. The first reflection for the recovery of the organisation from covid pandemic is
the increase in the market share. The market share of the company becomes 45.9
percent in low cost sector which was around 39.6 at past and the increment of 6
percent reflects the strong position of the company in aviation industry. The total
share of company in CEE market becomes 20 percent which was around 17
percent before sometime. These statement express the quality of the company to
become the leader of the market.
2. The management of the organisation also strengthen their position in the west
where the company operates their business in more than 15 years. Company
acquires more bases and routes in the United Kingdom and Italy which is
becomes the highest in history of company. The management of Wizz air opens
10 new bases in the western Europe which is great achievement in the history of
the company.

3. Third and the most important achievement of the company to establish their
existence in the country of United Arab Emirates. This arm of the company
provided huge revenue to the management because Abu Dhabi is one of the most
visited place of the world. The respected government makes the promotion of
tourism in the country is their priority support their stakeholders.
3) Analyse the competitive environments of the company in Europe?
The threat of the competitor is one of the most dangerous threat which any organisation
faces in their business. The competitors of the company also try to develop new and innovative
product in their organisation to take the competitive advantage. If this competitors are new
player in the industry, their threat will increase because they attracts the people towards them. It
is very important for the management of Wizz air to analyse their competitors and develops
effective strategies to deal with these issues.
There are many airlines present in Europe which has huge market share such as Easy jet,
Ryanair and many more. These airline has developed strong base in the market of europe which
restricts many companies to achieve competitive advantage (Balhareth, 2018). These companies
has strong marketing channels which provides them huge number of customers resulting huge
profit. It is important for the management of Wizz air to evaluate their competitors effectively
with the help of deep market analyses. It is required by the management of organisation to
develop effective and attractive business strategies to deal with these competitors. The low cost
airline facility of the Wizz air helps them to operate their business in Europe.
The Abu Dhabi arm of the company may also faces difficulties in their future because
there is big competitors operates their business in Abu Dhabi called Emirates Airlines. It is
luxury airline which provide air facilities in the country and holds huge market share. It is
required for the management of Wizz air to makes considerable changes in their business model
to become successful in this country. Most of the Arab customers prefer to take the luxury ride.
4) What strategic options and directions could the company pursue for the future growth both in
Europe and international Market?
It is not right to say that there is no hope for the growth of the organisation in the future.
If these natural disasters develop threat for the business organisational then also develop
different new opportunities in the market. It depends upon the management of the organisation
how they evaluated the market and what measures they take to grab those opportunities. The

brief discussion related to the growth opportunities present with the Wizz air in international
market are given below:
The taste and preference of the customers are shifted to the healthy foods and also the
safe environment so that they become disease free. The area of safe environment are very wide
as it included the following of covid guidelines in the flights and also the safe environment in
flights. It is important for the airline to make sure the hygiene and health factor in their food
services. It is an opportunity for the Wizz air to develop effective framework in their
organisation which deals with the effectiveness of covid guidelines in the organisation and also
make sure the hygiene factor in their food. It attracts the passengers towards the company and
makes possible to take competitive advantage in the industry.
Most of people were bored to stay at their home due to the lock down and demand safe
holiday packages for some leisure and fun (Ali and Varoğlu, 2021). There are many destination
are present in the world which becomes safe and affordable for the customers. Many airlines
companies earns huge revenue by organising safe holiday packages for their customers. It is
beneficial for the airlines of Wizz air to develop attractive holiday packages and achieves the
growth in their business.
It is very important for the organisation to make considerable changes in their business
model according to the needs and preference the Arab people. These people prefer to spend
huge amount on their leisure activities and adventure. If the company makes the changes
according to the same then it is golden chance for the company in term of future growth.
CONCLUSION
It is concluded from the above discussion that the it is essential for the success of the
organisation to evaluate the external environment carefully to deal with the challenges and
issues. It concludes different challenges which the management of organisation faces in external
environment. It is also require to address the internal condition of the company and the future
growth factors.

REFERENCES
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