Wizz Air Company Analysis: Competitive Strategy, and Recommendations

This report provides a comprehensive analysis of Wizz Air Company, a Hungarian airline operating in Europe and the Middle East. It utilizes Porter's Five Forces framework to assess the competitive landscape, highlighting the low threat of new entrants, moderate bargaining power of suppliers, high bargaining power of buyers, medium threat of substitutes, and high rivalry among existing competitors. The report evaluates Wizz Air's strategic position, considering environmental opportunities and threats, company strengths and weaknesses, and organizational culture. Product differentiation is discussed, emphasizing Wizz Air's low-cost services, affordable prices, and inclusion of small meal packages, while also noting the company's website usability issues. The report concludes with future recommendations for Wizz Air, including enhancing integrated marketing communications, improving website user-friendliness, promoting ecological initiatives, and strengthening brand image. The document is available on Desklib, a platform offering a wide range of study resources for students.

WIZZAIR COMPANY
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Table of Contents
INTRODUCTION................................................................................................................................2
PORTER’S FIVE FORCES ANALYSIS....................................................................................................3
STRATEGIC POSITION OF WIZZAIR...................................................................................................5
PRODUCT DIFFERENTIATION...........................................................................................................6
FUTURE RECOMMENDATIONS........................................................................................................7
CONCLUSION...................................................................................................................................8
REFERENCES.....................................................................................................................................9
1

INTRODUCTION
This assignment is based on the context of Wizz Air Company and the market and strategic
analysis of the company depending on the factors associated with it. Wizz Air Company is
legally known as Wizz Air Hungary Ltd. that is headquartered in the Budapest, Hungary. The
company operates in the airline's sector and provides its air services in many places of the
Middle East and Europe. Also, the company has the leading fleet of the Hungarian airlines
(Dobruszkes, et al. 2017). This assignment will discuss the competitive analysis of the company
using Porters five forces of Wizz Air Company. Furthermore, this assignment evaluates the
strategic position of the company along with its product differentiation and future suggestions
for the company to achieve its aims and objectives.
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PORTER’S FIVE FORCES ANALYSIS
The Porter’s Five Forces is a framework that helps to recognize the competition that any
business faces (Porter and Heppelmann, 2014). It is based on five forces the impacts the profit
margins of any company. The Porters five forces analysis for Wizz air Company is as following:
 THREATS OF NEW ENTRANTS: Entry of new companies in the airlines industry has low
threats on the Wizz Air Company as to switch to airlines business there is need of much
capitals and strong customer base to earn profits and also the customers choose the
company with high brand names and that are preexisting in the airlines business and the
brands they trust on.
 BARGAINING POWER OF SUPPLIERS: The bargaining power of suppliers for the Wizz Air
Company is less as there are many aircraft manufacturers around the world and the
company could switch the easily to the new manufacturers that put the Wizz Air Company
in more dominant position as compared to the raw material suppliers.
 BARGAINING POWER OF BUYERS: Buyers usually have high demands as they want best and
exclusive packages by paying the least possible amount (Rothaermel, 2016). This becomes a
reason for high pressure on the company as the smaller and strong the base of customers of
Wizz Air is the more will be there bargaining power and ability to attain more offers and
discounts.
 THREATS OF SUBSTITUTE PRODUCTS AND SERVICES: The Wizz air Company has a medium
threat to the substituents. As there are many substituents of the airline facilities such as
roadways like cars, buses or waterways like ships boat etc. But also there is much cost of
switching and that other mode of transportation can cost higher than air tickets and will
take much more time as compared to airways.
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 RIVALRY AMONG EXISTING COMPETITORS: This rivalry among existing competitors is high
as the airline industry is recently very slow-moving and so the number of existing
competitors continues for a long run and also doesn't seem to be less or more capacitated.
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STRATEGIC POSITION OF WIZZAIR
The Strategic Position of any company is based on the influence on the tactics of the external
environment, the strategic capabilities of any company such as competences and resources, the
aims, objectives and goals of the company and also the organizational culture (CEPTUREANU,
2016). The environmental opportunities of Wizz Air Company that plays an important role in its
strategic position are growing opportunities in a new location, co-operation with other airlines
organizations etc. The threats on the company the impacts on its strategic position are rising of
oil and raw material costs, terrorist attacks and increased air taxes. While strengths of the Wizz
Air Company’s includes less cost of operating, much knowledge of European market and the
weakness includes the limitation of operating at low cost, dependent on single line of business.
The aim of the Wizz Air Company is to be the largest airlines with discounted offers also the
objective of the company to increase as many as passengers by providing them premium class
service qualities at affordable expenses. The organizational culture the company has adopted is
the role culture that is developed on the rules. These are majorly controlled by each individual
in the company as everyone knows what their accountabilities are. The role culture impacts on
the strategies of the company as it helps to understand whether the current working practice is
suitable for the environment of the company or not and what more could be done to fit with
the strategic position.
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PRODUCT DIFFERENTIATION
Product differentiation is a process of marketing that helps to understand the difference
between the products and services of one company to its competitors. Wizz Air Company has
much better facilities and services as compared to its competitors the company has low-cost
services that come in affordable range to even people belonging to middle-class group and the
USP of the company is the lowest price for the similar services that are being offered by its rival
companies such as British Airways, Ryanair etc. (Barney, 2014). The services of the company are
not only differentiated in its costing but also its low prices include small meal packages service
even for the people travelling in an economic class that neither British Airways nor Ryanair
offers. The online website of the company is not that user-friendly which its biggest drawback is
and where the competitors of a company like British Airways always had an extra point has the
user find it easy to operate as compared to Website of Wizz Air Company.
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FUTURE RECOMMENDATIONS
Apart from being well-established companies still there are few areas of improvement for the
Wizz Air Company and if the company implements those change it could help them even more
to work effectively and gain more passengers and accomplish the aims and objectives of the
company.
 Wizz Air must enhance its integrated marketing communication tactics that could help
them to gain a competitive advantage in the market.
 The management of the Wizz Air must pay major focus on the quality of its online website
and try to make it more users friendly.
 The management of the company must introduce more events and initiatives to promote
less damage to the ecology.
 The company must enhance its brand image as at times its low prices to gain competitive
advantage outputs in a negative effect on the image of the company.
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CONCLUSION
This assignment concludes with the various factors that help to gain a competitive advantage in
the market along with attaining the aims and objectives set by the airline company Wizz Air.
This report explains the competitive analysis of the company using Porters Five Forces analysis
along with the difference in the product of company as compared to its competitors like British
Airways, Ryanair etc. Lastly, this assignment has few recommendations for the Wizz Air that will
support the company to attain success in the competitive airlines business.
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REFERENCES
1. Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson higher ed.
2. CEPTUREANU, E.G., 2016. Competitive Intensity and Its Implication on Strategic Position of
Companies. Journal Of Applied Quantitative Methods, 11(1), pp.57-62.
3. Dobruszkes, F., Givoni, M. and Vowles, T., 2017. Hello major airports, goodbye regional
airports? Recent changes in European and US low-cost airline airport choice. Journal of Air
Transport Management, 59, pp.50-62.
4. Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming
competition. Harvard Business Review, 92(11), pp.64-88.
5. Rothaermel, F.T., 2016. Competitive advantage in technology intensive industries. In
Technological innovation: Generating economic results (pp. 233-256). Emerald Group
Publishing Limited.
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