Wizz Air: Comprehensive Business Strategy and Analysis Report

This report provides a comprehensive analysis of Wizz Air, a low-cost budget airline operating primarily in the European market. It begins with background information, highlighting the company's founding and evolution, including its strategic positioning within the airline industry. The report then delves into an internal analysis, examining product differentiation, human resource management, and supply chain management practices. The analysis further extends to the external environment, utilizing Porter's Five Forces model to assess the competitive landscape, including threats of new entrants, bargaining power of customers and suppliers, threats of substitutes, and competitive rivalry. Based on these analyses, the report concludes with strategic recommendations for Wizz Air to enhance its market position and achieve sustainable results, including investments in customer experience and technological advancements.

EXTENDED PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background information of the Wizz Air...................................................................................1
Strategic position of Wizz Air.....................................................................................................2
INTERNAL ANALYSIS.................................................................................................................2
Product differentiation................................................................................................................2
Human resource management.....................................................................................................2
Supply chain management..........................................................................................................3
EXTERNAL ENVIRONMENT OF Wizz Air................................................................................3
Recommendation.........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Extended project consist important part in accomplishing aims and objectives of the
business. With the help of the different activities and sub parts, creative results will be
implemented at workplace (Mills, 2017). In this consideration, present report based on the Wizz
Air which is multinational enterprise to create successful strategy with internal and external
environment. For gaining insight information for the present report covers background, strategic
position, internal and external analysis. On the basis of above description conclusion and
recommendations can be provided to develop effective results in Wizz Air. In respect to deal
with different activities, it is essential to operate functions with systematic supply chain
operations (Grant, 2016).
The chosen company operating their functions and operations in systematic manner. In
this consideration, it can be stated that it is very old business that implement airline activities in
different manner. With the help of the multinational operations and functions, competitive results
will be gain with clear understanding (Ringham and Miles, 2018). Furthermore, report includes
external analysis in which new functioning and recommendation for next several years
considered in the business. It also helps to discovering impact of the business operations on next
several years so that recommendations also provided in systematic manner.
MAIN BODY
Background information of the Wizz Air
Wizz Air is the one of the lowest cost budget airline industry which operates in the
European market. This enterprise has been founded in 1995 and first flight operating from
London to Glasgow. In the beginning time, Wizz Air also leasing in more than 2 aircraft's. This
enterprise also licences with many other enterprises to carry several functions. Over the years
passage, there are several changes has been implemented in the chosen firm to leading with
changes with dramatically (Flouris and Lock, 2016).
The selected company also bought the main competitors that also providing same
services in the market. Furthermore, Wizz Air also carry different activities that helps to
considered operations to provide low cost budget in airline industry.
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Strategic position of Wizz Air
Strategic position considered internal and external environment that determines several
operations with current strategic position. In order to gain competitive advantage, the company
need to focus on the related strategies of the business. It includes several numbers of statements
to compete with different products and services (Flouris and Lock, 2016). Hence, the selected
business focus on the low cost strategy and product differentiation as well.
INTERNAL ANALYSIS
Product differentiation
Product differentiation is the creative strategy that used and carry to accomplish
competitive advantages. With this consideration, competitive advantages make to strengthen in
the position for products. It means that the chosen business need to implement creative products
and services in several aspects (Eaton, 2017). These are present in different form and make
attractive then the competitors. Successful results will be gain through this strategy that depends
on the research of Wizz Air, its development and innovation activities.
Human resource management
Airline industry provide several kinds of services for people who perform their functions
and operations in all over the globe. Industry also represents strong force of economic so that
Wizz Air deal with technological innovations to attract huge number of customers on the daily
basis. Human resources are also trained in well manner to handle customers query (Kossmann,
2016). Furthermore, the chosen company also develops training courses for their staff members
to deal with the challenges that faced by persons.
Human resources are directly responsible with several activities such as recruitment,
training and development. In the Wizz Air, performance management has very strong position
which started in the formal and informal meetings. It is used to reviewing the performances of
staff members in previous time (Harvey and Turnbull, 2015). In the first year, it is important for
every employee to meet with the setting of goals which could be take place after 2 months.
Moreover, HR also supervise training and development needs which ensure to create awareness
of the responsibilities and expectations as well.
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Supply chain management
In the supply chain, progress has been made in the recent time of airline industry. There
are different modifications increasing the risk level in Wizz Air. Supply chain is more vulnerable
so that the chosen business need to create several changes in systematic manner. One of the
major objective is to considered production process in the latest generation in Aircraft's which
reduce time to releasing the final products in the whole market (Lee and Yoon, 2015). Further,
Airbus and Boing considered important efforts which increase the aircraft operating efficiency.
Demand of the commercial aircraft are continuously increasing which depends on the large
number of factors. In addition to this, financing aircraft programs and technological changes are
such factors exist in the business. For the selected business, it is very important to create well
integrated supply chain management to implement efficiently. The chosen company also
includes their collaborators and customers to access faster (Atkinson, 2016). With own time
orders and inventory management, the company can implement their creative activities at
workplace. Forecasting not presents problems anymore over the period which could be
monitories. Furthermore, logistics of the enterprise can be planned to consist proper supply of
raw material and supply chain with operations cost.
Moreover, the selected business has make large amount for investments through supply
chain will be implemented to attain sustainable results at workplace. It considered development
of the new activities that are planned for alternative results in 2020. For the selected business, it
is very important to integrated well SCM so that new activities are implemented in the well
manner. Forecasting is not presents for solution of the main issue so that the company can also
plan for logistics through proper supply of raw material and operations cost can be reduced
(Ringham and Miles, 2018).
EXTERNAL ENVIRONMENT OF Wizz Air
In respect to analysis and considered the external environment, Wizz Air need to apply
the porter five forces model. With the help of this model, positive outcomes will be developed in
the business. Different elements of Porter five forces are as follows:
 Threat of new entrance (Moderate): In respect to entering of new airline industry, Wizz
Air has threat of new entrance. In starting time, the chosen company dealing with the 2
leased aircraft's. Due to low cost market, there is only one player considered their
operations. They are getting comfortable position in the whole market. In respect to
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develop systematic results, cost of entry is also depends on the reaction which perceive
by the existing competitors. With this regard, other airline industry expect to enter in the
market, resultant they are determines their important part in the market. Therefore, it is
important function to invest large capital amount and many resources which create barrier
to entering of new business in the market (Flouris and Lock, 2016). Wizz Air and other
airline industry established their position in the market which create long term relations
with exclusive contract. With the help of this fact, airline industry could be saturated with
newcomer in the market. This industry is very expensive so that results of the cost of
buying and leasing aircraft's, services for customers and manpower.
 Bargaining power of customers (Moderate): Customers are represents as the most
important part and competitive force in the market. Higher quality and competition create
major impact on the customers bargaining. In this aspect, power of buyer group is highly
depends on the different characteristic of the situation and market position. In the
strategic decisions, amount of money is spent which could be put large pressure on the
airline and affect to the prices and profits. Wizz Air also attract several customers who
are sensitive for the price. As the offer low price, Wizz Air will able to attract large
number of buyers in their business. High level of convenience considered for the
frequency of the flights.
 Bargaining power of suppliers (High): In airline industry, bargaining power of the
supplier is direct related with the substitute suppliers, switching cost, etc. Therefore,
suppliers perceive their high power into the consideration of boing and Airbus. These are
major aspect of the suppliers which exist in the airline industry. Key players can also
pressure on the industry which increase prices and diminish quality of the aircraft sold.
Furthermore, there are other such suppliers presents in the industry like A1, Jet, fuel
suppliers, active participants, etc. It could be influence to the companies in direct and
indirect way to attain profitability and creative results (Lee and Yoon, 2015).
Furthermore, for the chosen business, it is important to take labour which considered by
the suppliers with great power. Researches also prove that highly skilled labour is also
major issue in the business which could be impact on the profits that are made by Wizz
Air.
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 Threats of substitutes (High): This is one of the important factor which helps to create
shape to the decisions for customers. They are switch to other provider with similar
products and services. In addition to this, in the airline industry, one of the fastest and
modern way is transportation so that people can use train, bus and car to reach their
desire destination. Degree of the strength is directly depends on the large factors which
included money, time and personal taste. Switching cost also helps to customers to
choose their several kinds of transportation. Hence, Wizz Air understand necessity of
travellers to opt alternative options to offer several services such as rent, tour packages,
etc. It helps to create high growth and popularity in all over the market for Wizz Air.
 Competitive rivalry (High): In the airline industry, different competitors use unique
strategy to attract customers and increase their profitability as well. In this way, they are
able to gain popularity in all over the areas to make strengthen position and enhance
customer loyalty. With the help of the adding customer services, price, strategies,
marketing campaigns can be included in systematic manner. With the help of adding
several services, customers could be increasing in the business. Furthermore, the chosen
company also decide to continually expanded their operations to attain profitability at
workplace. Further, this industry also marked to tend with the market share from each
other. For the buyers, it is easy to change their business as per their price and
convenience. In this purpose, rivalry level also increasing continually to operate
systematic activities in the market (Ringham and Miles, 2018). Along with this, rivalry
also high term that fix in the cost. Although, cost of the flights are fixed so that
companies can sold their seats at lower prices. It can be resultant in the pricing war
among the different companies.
Recommendation
Airline industry are competitive so that Wizz Air operating their functions and operations
in large context. There are several numbers of opportunities taking into the consideration, which
helps to the chosen firm to operate in Europe. Hence, in the emerging market, it could be
represent great results in the business. With the help of the international expansion, more
investments will be implemented that make clear strategies in the business. In this consideration,
strategic move also change the position to avoid the low cost competition in Europe. In order to
recommend, the chosen business need to invest better experience for every single customer. With
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the help of the latest technology, they have great impact to serve and enhance loyalty program
(Flouris and Lock, 2016).
CONCLUSION
From the above report, it could be concluded that Wizz Air has advantages to deal with
large number of customer through provide them better results. With the help of the focus on the
present study, it can be summarised that the chosen company need to launch their program to
make greener. It is important to invest more and develop status in systematic manner.
Furthermore, it also interprets factors that impact on the airline industry to operate in large
market perspective. It is highly important to focus on the increasing close analysis of the
business. Improvement are also increase integrated marketing communication which help to
make stronger results in expansion into the new territories. In respect to make close analysis, it
can be articulated that marketing communication strategy can be used by the Wizz Air to expand
territories.
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REFERENCES
Books and Journals
Atkinson, D., 2016. Thinking regionally: Aviation and development implications in the Karoo
region, South Africa. Development Southern Africa, 33(2), pp.129-144.
Eaton, J., 2017. Globalization and human resource management in the airline industry.
Routledge.
Flouris, T.G. and Lock, D., 2016. Aviation project management. Routledge.
Flouris, T.G. and Lock, D., 2016. Managing Aviation Projects from Concept to Completion.
Routledge.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Harvey, G. and Turnbull, P., 2015. Can labor arrest the “sky pirates”? Transnational trade
unionism in the European civil aviation industry. Labor History, 56(3), pp.308-326.
Kossmann, M., 2016. Requirements management: How to ensure you achieve what you need
from your projects. Routledge.
Lee, J.J. and Yoon, H., 2015. A comparative study of technological learning and organizational
capability development in complex products systems: Distinctive paths of three
latecomers in military aircraft industry. Research Policy, 44(7), pp.1296-1313.
Mills, A.J., 2017. Man/Aging Subjectivity, Silencing Diversity: Organizational Imagery in the
Airline Industry. The Case of British Airways . In☆ Insights and Research on the Study
of Gender and Intersectionality in International Airline Cultures (pp. 367-392).
Emerald Publishing Limited.
Ringham, K. and Miles, S., 2018. The boundary of corporate social responsibility reporting: the
case of the airline industry. Journal of Sustainable Tourism, pp.1-20.
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