STRATEGIC ANALYSIS OF PIA

PRESENTERS

FARAH NARGIS IMRAN IZHAR

TO BE PRESENTED …………

Mission VisionPest analysisSWOT analysisPorter’s five competitive forcesBCG matrix

INTRODUCTION PIA ( Pakistan International Airline )

Birth of a Nation ,Birth of an Airline .

Formed on 10th january 1955 .

1959 golden year of PIA Nur Khan as managing director.

LOGO

SLOGAN : GREAT PEOPLE TO FLY WITH

COLOUR : green

national flag on aircraft tail

HUBS : JINNAH INTERNATIONAL AIRPORT ALLAMA IQBAL INTERNATIONAL AIRPORT

HEADQUATERS :

KARACHI ,PAKISTAN

Company Name :Pakistan International Airline

Nature of Business :Airline Service

Target group :middle class/traders/businessmen

positioning : Pakistan's largest airline

VISION AND MISSION

PIA’s vision is to be world class airline . Meeting customer expectations through excellent services , on- time performance , innovative products and absolute safety .

PIA’s mission is to be a global airline of choice .

PEST ANALYSISPest analysis is a business measurement tool .

These four factors greatly affect the operational activities of PIAC.

POLITICAL ANALYSIS Political Factor greatly affects PIAC reason is

being held by government in large share. Political distress in our neighboring countries

affect our airline industry. Change of government results in change of

business owners. Political stability provide more investment to

the PIAC.

Political instability reduces the number of visitors .

Increase in number of people immigrating to developed countries.

ECONOMIC ANALYSIS PIAC is mostly dependent on customer revenue

hence economic conditions of market is very important .

Decrease in income of people is decreasing the buying power which results in reduction of number of customers.

Increase in fuel prices , increases ticket prices .

SOCIAL ANALYSIS Explosive elevation in youth's education level. Increase in number of people for Hajj and Umrah. Instability in Pakistan. Prolong method of verification and checking in

PIAC.

Pakistani youth are more attracted towards entertainment in flight.

Act of patriotism to select national airline for flight.

TECHNOLOGICAL ANALYSIS Introduction of viper jet. Introduction of modern railway tracks. Air blue buying 6 new air buses. Boeing planes are fuel guzzlers. Rebate on internet purchases.

America developing Air highways.

Business plus lounges are equipped with the latest magazines , newspapers, internet access, cable television and snacks.

Introduction of holographic calling Use of fiber optic cable to stay connected with the

rest of departments of airline. HSE (health safety and environment) services

provide help in the safety of health of passengers.

PORTER’S FIVE FORCES MODEL

Bargaining power of customers.

• PIA has monopoly in Pakistan.• Only three service providers.• World’s airlines stopped operating

from Pakistan.• Only one substitute : By sea.

BARGAINING POWER OF SUPPLIERS

Only 2 suppliers : Boeing and Airbus.

Oil companies are giving PIA fuel on dept.

Operations of airports and defense department are mainly dependent on CCA.

THREATS OF SUBSTITUTE PRODUCT

Threat of substitute products is very little as people are not used to travel by sea and there is no other substitute

COMPETITIVE RIVALRY IN THE INDUSTRY

Competitive rivalry is overall less when seen the whole industry there is a little hint when comparing PIAC with Air Blue

STRENGTHSStrengths are found in the internal environment of the organization. They are the backbone of an organization.   PIA has a number of strengths due to which it is still one of the leading airline in Pakistan. These are as following :

Brand image Leading air carrier Main hub Subsidized faresBooking officesElectronic ticketing

WEAKNESSWeaknesses are also found in the internal  environment of the organization. Weaknesses if more in quantity can break down an organization easily. They can over come the strengths  as well. PIA  also  faces a number of weaknesses which are  as following :

Lack of brand promotion

Higher operator cost Debt burdenBurden of employees

OPPORTUNITIESOpportunities exist in the external environment. They need to be recognized and used according to the business being run. An opportunity recognized and utilized at the right time will be the strength of tomorrow. Such kind of opportunities also exists for PIA in its external environment. Some of them are as following:

Having maximum route and destination

Attracting customer through…..Huge potential market Better training programs GROWING DEMAND OF LOW COST

AIRLINES

THREATSEvery organization faces external threats which could do damage to the business's performance. These threats can damage the business and even could be the reason of  bankruptcy No doubt; PIAC is well established and seasoned organization. Yet there are certain threats being posed by the external environment. Some of them are as under:

High interest rates (rising fuel prices) strong competition by airblue. Accidents. Negative rising perception about the

country, regarding terrorism. Competitors: air-blue , shaheen air

international, emirates , qatar airlines