Comprehensive Report on Wizz Air's Strategy, Enterprise & Innovation

This report provides a comprehensive analysis of Wizz Air's business strategies, enterprise development, and innovation approaches. It includes an internal environmental analysis using SWOT and VRIO frameworks, assessing the company's strengths, weaknesses, resources, and competitive advantages. The external environment is examined through PESTLE analysis, identifying political, economic, social, technological, legal, and environmental factors impacting the airline industry. Furthermore, the report evaluates competitive forces within the industry using Porter's Five Forces model, focusing on competition, new entry threats, buyer and supplier power, and the threat of substitute products. The analysis aims to provide insights into Wizz Air's strategic positioning and potential for sustainable growth in a dynamic business environment. Desklib offers a variety of solved assignments and resources for students seeking further assistance.

Strategy, Enterprise and
Innovation

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Analysis of internal environment (600 words) 30%....................................................................1
VRIO Analysis.................................................................................................................................2
Analysis of external environment (500 words) 20%...................................................................4
Analysis of competitive forces within the industry (600 words) 30%........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business management refers to administration of organizational activities and functions that
supports to bring changes and develop productivity. For management it is needed to decide the
goals and collect various resources that can be use by industry to increase business activities and
performance (Borowski, 2021). The report is prepared to develop understanding how to manage
business functions and task that needs to perform so that, business could grow in changing
environment. The current project is about Wizz Air that is Aeroplane industry provides different
types of services to their customers and maintains higher performance. The report covers internal
analysis, external analysis, and competitive forces that can help to develop business productivity.
MAIN BODY
Analysis of internal environment (600 words) 30%
SWOT Analysis of Wizz Air
Strength Weakness
 Wizz Air is the large size London based
Aeroplace company that provides
travelling services to its customers.
 The organization is using new technology
and new services for their organization.
 Automation of operations has improved the
consistency of Wizz Air Holdings Plc's
goods and allowed the company to scale up
and down in response to market demand.
 The organization is having qualified and
accredited professional who always ready
to work collectively (Lee, Kim, Kim, and
Kang, 2021).
 Lack of research and development
directly affects business
organisation.
 The company is having low level of
current assets as compared to current
liabilities.
 Use if rented properly for running
business that created cost for
organisation.
 There is lack of financial planning
and strategy at the workplace.
 The organization is having lower
budget and quality control that
affected business negatively.
Opportunities Threats
 Increasing in number of internet use all  The fluctuating interest rate.
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over the world.
 People is making online purchase while
buying something products and services.
 Operation can help to reduce cost.
 Having average inflation rate and economy
is growing continuously.
 Consumers becoming more health
consciousness that influence customers to
make right buying decisions.
 Substitutes products and services of
airline industry also increasing.
 Changing in international trade
regulations.
 Increasing competition by reducing
prices of their products and services.
 The rises prices in fuel (Dezhou, and
Yu, 2021).
VRIO Analysis
This framework is related to analysing the competitive forces and managing a business
effectively. It has seen that there are many resources in organization which used to provide
quality of service and improving brand image. In relation to Wizz Air, VRIO analysis is defined
below:
RESOURCES VALUE RARE INIMMITABLE ORGANISED
Customer
satisfaction
Yes No No No
Global presence Yes Yes No No
Brand Image Yes Yes Yes No
Pricing strategy Yes Yes Yes Yes
Valuable – For each organization it is important to have focus on organizational
resources and use it optimally that can help to develop the business activities. The main resource
of Wizz Air is customer satisfaction, global presence, brand image, and pricing strategy. All
resources are valuable for organization as it makes feel good to people to travel in flights and
encourage to make again buying decisions.
Rare – When products and services are available with difficulties for others and uses its
properly that can help to manage a business and accomplish business goals. In relation to Wizz
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Air, Global presence is considering in rarity because to provide products and services across
global is difficult task that affected their business negatively. The selected organization
maintaining global presence by offering Airline services to its customers that can help to develop
business activities and performance.
Inimitable – This showcase resources and products, provided by organization is costly
and difficult to imitate that directly affects their business industry positively. In relation to Wizz
Air, brand image is attractive resources which are difficult to imitate for others. This helps to
operate a business and maintaining higher performance by attaining competitive advantages (Ni,
Xu, Cui, Qiao, Zhang, Li, and Hickey, 2021).
Organised – This means all resources of company should be organised that supports to
complete task. The Wizz Air is adopting effective pricing strategy that could be used to manage
business activities and increase competitive advantages (Brown, 2021).
Value chain Analysis –
This refers to various business activities and process that relates to creating a product and
services. The organization used this model to support their activities and managing all functions.
The value chain analysis of Wizz Air is defined below:
Primary Activities
 Inbound Logistics – This activity is used by Wizz Air to getting booking of airline and
managing inventory while offering services.
 Operations – This activity is used to providing airline services by selected organization
and converting raw material in to finished products (Xiaobin, and Jiawei, 2021) ) (Luijt,
2021).
 Outbound logistics – The management of Wizz Air used to providing better quality of
services and maintaining higher performance.
 Marketing and sales- The management of selected organization uses digital marketing,
social media, reward and recognition strategy to inform their customers and developing
business activities.
 After-sales services – The management of Wizz Air providing after sales services such
as quality assurance, repairing, food services, feedback, and training to employees so that
each customer will be treated special guests (Kuzmenko, and et.al., 2021).
Secondary Activities
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 Procurement – This activity is used by management to sourcing guests, raw material,
and managing airlines that can help to operate a business regularly and develop business
productivity (Liu, and Wang, 2021).
 Technological development – The management of Wizz Air uses new technology and
also provides training to their staff so that better quality of Airline services should be
provided to their customers.
 Human resources management – The HR manager of Wizz Air identify vacancy,
recruiting, selecting and controlling business activities that can help to manage a business
and retain staff for long run.
 Infrastructure – The management formulates planning, managing finance and
controlling over each function that can help to accomplish business goals (Ghosh, 2021).
Analysis of external environment (500 words) 20%
External analysis is important analysis in which consider all those factors that impact on
the business in direct manner and business cannot control them. There are using two models to
define which factors impact on business such as:
PESTLE analysis: It is a framework which is applied by the business entity to determine
and evaluate the macro environmental elements that direct effect on the performance of business
entity. PESTLE analysis apply on the Wizz Air to identify which factors direct impact on the
industry.
 Political factors: The political environment of nation changes such as, roadblocks,
protests or bans after that cut off the supply chain of different products & services. Thus,
business do not run their operation activity in smoothly manner. Due to increase taxes
and enhance the price of products and services drop total sales. Due to Covid -19
government declared lockdown that affected the Wizz Air negative as reducing number
of passengers and sales.
 Economic factors: Wizz Air industry sale out their services into different countries. When
government and economics acknowledge business activities so it helps to set up
favourable atmosphere for the growth of business. Government supports to people to
spend their income on shopping. On the other side, economy goes down and
unemployment increase in a country so it creates problem and develop different
environment (Kharazishvili, Kwilinski, Dzwigol, and Liashenko, 2021).
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 Social factors: Society and social trends become reason of shopping habits criterion of
people, behaviour changes and many others. When people are qualifying so they are
demanding different airline services and preferences are different that can be opportunity
for Wizz Air to provide new services and increase customers. On the other side, rural
people purchase any product as per the taste or whatever is available.
 Technological factors: Technological changes effect on the Wizz Air in direct manner. It
could be in the kind of cash management, stores sales record, booking, and cancellation
via online and generating sales reports. Wizz Air get advantage by technology and
promote their products & services without any restrictions. This can help to develop
business activities and functions properly.
 Legal factors: Wizz Air industry has to follow the prevailing nation and international
labour laws, taxation rules as well as other business laws. When selected company
decided to do not follow set rules and regulations of specific country to increase the
chances of ban, restrictions and bankruptcy. This can create the challenges for
organization to run business (Shang, and Chen, 2021).
 Environmental factors: Some Airline industries offer food and eatable items also. These
items cannot keep fresh for longer time period in changeable environment. After some
time, it will be expired. Thus, Wizz Air requires following legal and economical elements
to continue their business by contributing in CSR activities and minimum pollution. This
can be opportunity for growing their business continuously.
Mind Map
Mind mapping is the structure which is use by organization for the purpose of analysisng
organization performance and brings changes accordingly. This is most powerful technique
that uses to visualise thoughts and ideas for the purpose of communication that can help to
manage the business activities. In relation to Wizz Air, management use this model to share
their information and communicate properly that can help to manage all functions and
activities effectively. the management understand new technology and use in their company
that can help to accomplish business goals (Modi, and Rawani, 2021).
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Analysis of competitive forces within the industry (600 words) 30%
Porter’s Five force model – This model is related to analysing competitive forces and bringing
changes at their workplace that can help to provide a business opportunity to grow it
continuously. The five forces in context to Wizz Air is defined below:
Competition in the industry – This force showcase number of competitors which are
available in market and affected business productivity. In relation to Wizz Air, there is high
threat of competition as main competitor is Ryanair, British Airways, and Tiger Airway. This
can be threat for organization to continue their sales and business activities.
Threats of new entry – When someone take entry in existing market by establishing new
business in same sector then could be challenging for organization and reduce organizational
profitability. In relation to Wizz Air, there is lower threat of new entrance because to operate
aeroplane industry there is need to have high range of investment and resources that is difficult to
arrange. Thus, it can be opportunity for organization to grow its business (Trad, 2021).
Bargaining power of buyers – It states how easy customers can reduce prices of their
wanted products and services that can help to regulate a business. In relation to Wizz Air, buyers
have low bargaining power as it charges fixed rates which is easily affordable for guests that can
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help to run a business effectively. This also bring changes in their services by managing all
functions (Hameduddin, 2021).
Bargaining power of suppliers – This means suppliers who understand requirement of
business concern and provide raw material for the purpose of developing business activities. In
relation to Wizz Air, there is moderate power of suppliers because increasing prices of their raw
material, organization could switch their suppliers that can help to managing a business
continuously and develop higher productivity in changing environment.
Threat of substitute products – This can be explained as availability of similar products
and services in market that can be used by customers for running their business and attaining
competitive advantages. In relation to Wizz Air, there is high threat of substitution that created
challenges for organization to operate its business in changing environment (He, 2021).
CONCLUSION
Business management is the activity of managing coordination and direction between
business activities that can help to develop the business performance. This is important for each
organization to understand what people wants and how they could be satisfied so that products
and services are provided accordingly. It has seen that there are multiple activities, which creates
the challenges for organization to manage all and run a business effectively.
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Hameduddin, T., 2021. Employee Engagement in Government: Exploring the Role of the
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