Wizz Air's Organisational Strategy: Analysis of Growth and Challenges

This report provides a comprehensive analysis of Wizz Air's organisational strategy, focusing on the challenges it faces in the external environment, including political, economic, social, and technological factors. It examines the company's internal resources and business situation, highlighting its financial stability and customer-centric approach. The report also analyses the competitive environment in Europe, comparing Wizz Air to competitors like Ryanair, and discusses strategic directions for future growth, such as market penetration and product development. The conclusion emphasizes the importance of organisational strategy for achieving company goals and outlines the strategic options for growth in both existing and international markets. Desklib provides access to similar solved assignments and past papers for students.

ORGANISATIONAL
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Challenges faced by the company in the external environment..................................................3
Internal business situations and resources of the Wizz Air.........................................................4
Analyse the competitive environments of the company in Europe.............................................5
Strategic directions for the future growth of the company..........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Organizational strategy gives the outline and is the sum of all the actions which the
company should undertake in order to achieve the objectives of the company. Wizz Air has been
taken and the airline serves in many cities across Europe. The report covers the challenges faced
by the company in its external environment(Larson, and Foropon, 2018). Internal business
resources and situations of the Wizz Air, its competitive environment and strategic options and
directions for the future growth in Europe and in the oversees market.
MAIN BODY
Challenges faced by the company in the external environment
Business environment is the collection of the internal and external environment elements
such as employees, customers, competitors, supply and demand and various other activities by
the government. These factors present in the environment affects the functioning of the company
and are beyond the control of the company(Stevenson, and Marintseva, 2019). Business
environment helps to identify and exploit the opportunities and helps the management to plan
and make modifications in the planning of the company which can effect the overall
management of the organization. External environment is defined as the group of those factors
which are present outside the organization but affect its operations to some extent.
The airline industry has also contributes equally compared to the other industry. Wizz Air being
an airline industry is also affected by the changes in the external environment such as Political,
Economical, Social, Technological, Environmental and Legal. The company has to face various
challenges that are present in the external environment that affects the company.
Political factors present in the country and the policies and regulation which is imposed by the
government and the company has also experienced difficulty in handling their operations in
certain circumstances(Helmold, 2019). Wizz Airline operates in many countries and every
country has to fulfil the requirements as per the government policies so it can create instability in
the United Kingdom market.
The company has also faced various problems such as the drastic fall in the demand for the
passenger due to the Covid-19 pandemic and many firms including the aviation industry was also
affected. The company was greatly affected due to the economic crisis which Wizz Air suffered

as the overall cost was increased due to pandemic which also increased the operational cost of
the company.
The purchasing power capacity is considered as main source of revenue for the airline industry
and favourable economic conditions will allow higher income. On the other hand, unfavourable
conditions such as terrorist attack or arrival of any severe disease can also impact the profits of
the airline industry. The attitude of people towards migration is negative in many countries. The
company is facing the problem to manage the supply chain which is a threat for the airline
industry.
Innovation has become a crucial factor for any industry tu survive and also for the development
of the business activity. With the rapidly increasing the advancements of the technology, the
company faces challenges to adopt the fasts technological changes to provide high quality
services to its passengers and in the absence can cause great loss to the company. It is important
for the company to continuous make technological improvement in its operation systems.
With the growth and various climatic changes is the biggest environmental challenge faced by
the company. It also faces problems on environment sustainability as consumers are becoming
more aware and their demand for the recycled products is more so the company has to focus on
providing the products as per the requirements of the consumer. The company should reduce
their other costs and focus on reducing the pollution and make eco-friendly environment.
Internal business situations and resources of the Wizz Air
Due to the changing environment and several restrictions imposed by the government and
financial position of the company is stable and is one the biggest competitors in the airline
industry. It has maintained its financial position in the market by offering reasonable fare for the
customers during the pandemic. During the crisis also the focused on investing and broadening
the cost competitive advantage(Gössling, et.al, 2020). The company has efficiently utilized and
managed its business resources and created a digital platform that provided safe and cost
effective journey for the passengers. Wizz Air is continuously focused on building the
understanding of its customers in order to provide better and new services according to the
requirements of the passengers. The company focused on maximizing the employee engagement.
The company has efficiently utilized their resources and the entire workforce of the company
was solely dedicated towards the organizational success and also focused on strengthening the
customer base. During the time of covid crisis, the company made various improvements such as

gender diversity by nine per cent and also focused on the sustainable development. Wizz Air
provided various career opportunities and provided best training by using effective tools in order
to improve and provide best training to the employees in order to increase their area of
knowledge(Giao, 2021). The company has faced various difficulties and challenges due to covid
restrictions and guidelines imposed by the government for the safety of the employees.
Analyse the competitive environments of the company in Europe
The organization wizz air is leading the market of Europe since many years. The organisation is
holding the international market by expending the business in the marketplace along with that
also face various competition in order to grow. The organization is new in the Europe where the
other comparative company is already providing exclusive services to the consumer (Akbar and
Kisilowski, 2020). The competitiveness company like Ryanair flies to almost 200 destination
end-to-end the 30 countries. Whereas the organization flies the aircraft more than 210 plus
flights to the consumer. The organisation also provide the services at the time of the cries when
many companies step back to avoid the challenges off the cries. The organisation have more
market share than the competitors. The company offer the affordable charges to the consumer in
order to enhance their experience. As the people are more likely to depend on the technology the
organizational is facing the composition because the other competitive company continuously
innovate their services. Where the wizz air aim to deliver the services as per the affordability and
comfortability which increase the experience of the consumer. The company treat the employees
as the assets of the organisation rather than treating them as the liability in context to the
company provide safety to the workforce.
In order to decrease the competition the organisation catch the eyes of the consumer by
expressing the concern on the environmental , social and economical responsibilities,. Where the
other competitors available in the Europe focuses on generating profit rather than satisfying the
consumer. The another reason is the inflation because of which the organisation is facing the
huge competition in the aviation industry. The unique selling price of the company is quite lower
than the other companies but in the covid19 the company face the high competition( Camilleri
2018). Many other competitive company lower the price of travelling in pandemic which affect
market of company as the people get other substitutional option. As co0mpare to other airlines
the organisation lies more penalties on the baggage and do not allow extra luggage only limited
luggage the company considers. The wizz air is more likely to depend on the e-booking which is

the draw back for the company and benefits for the competitive organisation because the
company face the cyber risk because of that many consumers avoid booking the tickets online
and shift toward the other airlines for more effective and innovative technological services. In
the aviation industry the competition is extremely high which consume lots of fuel in order to
that the wizz air lower the carbon and noise pollution in order to acquire the attention of the
consumer. The wizz air also work on the environmental projects to face the forthcoming
challenges. The company execute around 65 initiative in context to save the natural resources
that fuel. In order to decrease the competition the organisation offer the comfortable and extra
large seat to the traveller as compare to other airlines. The service offered to the consumer in the
Airbus are more flexible than the other brand (El Haddad, 2019).
Strategic directions for the future growth of the company
Strategy is defined as the plan for the successful achievement of the objectives of the
company and strategic options are the alternatives that a company has for the uncertain business
environment. Wizz Air can opt for the various strategic options for the future growth in Europe
as well as in the international market. The company can choose the to diversify its existing
market and product portfolio(Wensveen, 2018). If the company feels that their business is
running successful in Europe can choose to diversify its business and operations in the
international market as well. The strategy will help the company to achieve the scope and the
economies of scale. By expanding its operations in other countries, it will help the company to
gain advantage and using resources which are inexpensive and reduces the extra cost incurred
by the company. If the company. Strategic directions is defined as the plans which is required for
the implemented in the company for the fulfilment of the organizational goals. The company can
choose the market penetration strategy in order to increase its market share and airline should
adopt this strategy to grow its market share and concentrate on the existing markets. It is
considered as an opportunity for the Wizz Air to increase its market share for growth in Europe
and includes other introduction of new products and services according to the preferences of the
customers(Cosenz, and Noto, 2018). The other strategic direction is the product development
strategy which should be used by the company which involves new and modified products and
services in the market according to the passengers changing needs and preferences and to attract
new passengers. Through this strategy the company can compete in the market.

CONCLUSION
From the above report it can be concluded that it is very important for the company to
make organizational strategy for achieving the goals and objectives of the company and also for
the future growth of the company in the existing and in the international market. The report
highlighted the challenges faced by the company in its external environment which included the
various political, social, economical, technological factors etc. The internal situation of the
company, the competitive environment of the Wizz AIR and the various strategic options and
directions the company should adopt for the growth in the existing market and also in the internal
market where the company wants to diversify its operations.

REFERENCES
Books and journals
Akbar, Y.H. and Kisilowski, M., 2020. To bargain or not to bargain: Airlines, legitimacy and
nonmarket strategy in a COVID-19 world. Journal of air transport management, 88, p.101867.
Camilleri, M.A., 2018. The marketing environment. In Travel marketing, tourism economics and
the airline product (pp. 51-68). Springer, Cham.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning.51(1). pp.127-140.
El Haddad, R., 2019. Exploring service quality of low cost airlines. Services Marketing
Quarterly, 40(4), pp.301-315.
Giao, H.N.K., 2021. Customer Satisfaction of Vietnam Airline Domestic Services.
Gössling, et.al, 2020. Pandemics, tourism and global change: a rapid assessment of COVID-19.
Journal of Sustainable Tourism.29(1). pp.1-20.
Helmold, M., 2019. Tools in PM. In Progress in Performance Management (pp. 111-122).
Springer, Cham.
Larson, P.D. and Foropon, C., 2018. Process improvement in humanitarian operations: an
organisational theory perspective. International Journal of Production Research.56(21).
pp.6828-6841.
Stevenson, I. and Marintseva, K., 2019. A review of Corporate Social Responsibility assessment
and reporting techniques in the aviation industry. Transportation research procedia.43.
pp.93-103.
Wensveen, J.G., 2018. Air transportation: A management perspective. Routledge.
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