Airline Industry

airline industry

2007 SWOT Analysis of Airline Industry

Economy will always become major concerns when a country experiences various disasters including ones caused by terrorism . Back to three years ago , when there was a terrorist attack on the famous building in the world , World Trade Center and Pentagon , we witness that such attack has cost the country 's economy in major reform both operational and fundamental aspects not to mention severe impact on the air travel industry

The situation suggests that airline industry , like other industries , has both internal and

external forces that further can be broken down into four elements of SWOT Analysis -strengths , weaknesses , opportunities and threats

Strengths

Strengths are components of internal analysis that describes any resources and capabilities that support a company or an industry to achieve its competitive advantage such as patents , excellent reputation low cost structure , to name a few

Concerning the airlines industry , it has strengths , as they become the chosen long-haul transportation (intra and intercontinental transportation . Currently , the industry is segmented in which each provider (airline ) has particular target customers and therefore offers them particular services as well . Interestingly , nowadays , airlines have also equipped their services with information technology that enable effective and efficient services such as in-flight information , baggage on time delivery etc

Weakness

The second internal factor is Weaknesses . This is simply in contrast to the strength in which the absence of specific strength might be considered as the weaknesses of the company . The weaknesses of the airlines industry are they prone to economic and political forces . Such tragedy like 9 /11 is one example that any airline industry depends on the external factors

In addition , some airlines that provide low fares and no frills have made an image of the company as lower class flights . The company serves no in-flights meals it provides only peanuts and beverages in to maintain its low fares merit (Britt 2002 . Such airlines may survive crisis and hard times , but when the economy is stronger , a significant part of the customers might re-think their airline that provide `regular ' services like in-flight catering etcetera

Opportunity

Opportunities are an external factor in SWOT analysis . These elements provide specific opportunities that may help a company to gain more profit and achieve sustainable growth . They include unfulfilled customer need , new technologies , elimination of trade barriers and so on . The opportunities are as follow

Economic Pressure Groups

From economic point of view , the airline industry possess an attractive figure as the demands for air traveling continue rising as the result of growing business that require inter and intercontinental traveling . For instances , IATA , the International Air Transport Association predicted a 5 per year growth of international flights during 2000 to 2010 . They forecasted the growth to be focused at the Asia /Pacific regions , where international trade is growing vast and leisure travel would increase due to the rising strength of domestic economy ( The Airline Industry

Public Pressure Groups

In addition , public also has particular forces towards airline industry...