http://www.

scrib

NAME

MOHAMMAD WASEEM

FATHERS NAME

MOHAMMAD HANIF

ROLL NO

1204136

CLASS

BS IV

DEPARTMENT

COMMERCE

SUBJECT

MARKETING

TEACHER

SIR FAROOQ KHATRI

TOPIC

SWOT ANALYSIS

DATE

22ND OCT, 2013

d.com/doc/31496862/SWOT-ANALYSIS-OF-P-I-A

Q: WHAT IS SWOT ANALYSIS?

SWOT analysis is a strategic planning method used to
evaluate the strengths, weaknesses, opportunities and
threats involved in a project or business venture.

SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the strengths,
weakness, opportunities and threats involved in a project or business venture. It involves the
specifying
th e o bj ec tive s o f b us ine ss v en tur es or pro jec ts a nd ide nti f yi n g th e int er
nal and external factors that are favorable and unfavorable to achieving
t h a t o b j e c t i v e . T h i s t e c h n i q u e i s credited to Albert Humphrey who led a
convention at Stanford University in the 1960s and 1670s using data from Fortune 500
companies.

Strengths: attributes of the person or company that is helpful to achieving the

objective(s).
Weaknesses: attributes of the person or company that is harmful to achieving
the objective(s).
Opportunities: external conditions that is helpful to achieving the
objective(s).
Threats: external conditions which could do damage to the objective(s).

1. SWOT Analysis-Internal Factor

STRENGTHS

Strengths are found in the internal environme

n t o f t h e o r g a n i z a t i o n . T h e y a r e t h e backbone
of an organization. Strengths of an organization
c a n o v e r c o m e a n y k i n d o f weaknesses that the organization is facing. PIA has
a number of strengths due to which it is still one of the leading airlines in Pakistan. These
are as following:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

PIA has status of being Flag Carrier of Pakistan.

Highest Market Share at domestic network.
Multilingual Staff on Board.
Booking Offices in all major cities both at domestic and International.
PIA has well established brand as its oldest airline in Pakistan.
Subsidized fares.
Halal meat available at all flights
Electronic ticketing by web and through SMS.
Highly Professional Staff.
Having Governments protection.

WEAKNESSES
Wea k n e s s e s a r e a l s o f o u n d i n t h e i n t e r n a l e n v i r o n me n t o f t h e o r g a n
i z a t i o n . Weaknesses if more in quantity can break down an organization easily.
They can
over c o m e t h e s t r e n g t h s a s w e l l . P I A a l s o f a c e s a n u m b e r o f w e a k n e
s s e s w h i c h a r e a s following:
1.
2.
3.
4.
5.
6.

Old aging fleet of PIA causing higher operating cost.

Huge burden of Employees which cause financial burden.
Inadequate space on the aircraft.
Charging of higher fare as compared to competitors.
Lack of marketing activities as compared to competitors.
Poor quality of food/service on board especially in domestic flights.

2. SWOT Analysis-External Factor

OPPORTUNITIES
Opportunities 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:

1. PIA has huge potential market in Middle East if PIA upgrades its
fleet.
2. PIA has largest domestic network and by proper route planning PIA can generate huge amount of
Revenue with higher profit.
3. PTDC provides favorable market for domestic as well as international sectors for the airline.
4. PIA can generate more revenue by attracting customers through Web and Mobile Reservations
system.

THREATS
Every 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:
1.
2.
3.
4.
5.
6.
7.

Negative rising perception about the country, regarding terrorism.

Political instability and law and order situation.
Rising fuel prices in the world.
Over staffing at all levels.
Frequently rising Airlines fare.
Fast growing domestic and international competitors.
Effective promotion strategies adopted by other competitors like Emirates
a n d Shaheen and Air blue.

Conclusion of Using SWOT Analysis:

From the above SWOT analysis I came with certain Conclusion about PIA. No doubt h a s g o o d
market for further growth and it has many advantages over many others
airlines. But PIA should upgrade its old aging fleet as it is causing the PIA major
financial loss because fuel prices has risen in the international market and PIA has still old fleet,
which
causes higher operating cost. Another burden on PIA is it has the h
i g h e s t n u m b e r o f employees as compared to other airlines, as number of persons
per aircraft is highest. PIA should adopt a good marketing plan so that it will generate higher
profit and business classes s e a t s s h o u l d b e p r o m o t e d i n t h e m a r k e t a n d
p a s s e n g e r s s h o u l d b e a t t r a c t e d t o w a r d t h a t segment too. Merit based promotion
should be emphasized. PIA should adopt competitive strategies both at domestic network
and on certain international routes.