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SWOT ANALYSIS OF AIRBUS

STRENGTHS: WEAKNESSES:

Return on capital expenditure- In the Low investments customer service -This can
past, Airbus has been able to successfully provide competitors a future advantage. Airbus
produce high returns on the capital Group must invest more in R&D, notably
expenses it has invested on a variety of customer-service applications.
projects.
Business Model-Aerospace & Defense
Success of new product mix- Airbus competitors can emulate Airbus Group.
offers an extensive product variety and Company name must design a platform model to
helps the organization serve Aerospace & integrate suppliers, vendors, and end users.
Defense customers.
Declining market share -Aerospace & Defense
Strong brand awareness- People have is growing faster than Airbus Group. Airbus
heard of the Airbus brand because it has Group must examine the Capital Goods sector
been around for a while. Its brand trends to drive future growth.
awareness is hence great.

OPPORTUNITIES: THREATS:

Internet- The number of people using the Increasing competition - There has been an
internet has increased globally. This increase in competition within the industry
suggests them the chance to increase their putting downward pressure on prices for some of
online presence by engaging with their its products.
clients online.
Political uncertainties- Business performance
Local Collaboration- Airbus may grow can be hampered and extra expenses can be made
internationally by partnering with local as a result of the country's political
players. Airbus Group brings global unpredictability.
processes and execution skills to the Saturation in urban market- Airbus Group still
table. leads in Aerospace & Defense product
innovation. International and local competitors
Accelerated technological innovations-
Airbus: Improve industry productivity, challenge it.
allowing suppliers to make more products
and services.
The table below shows the Internal Factors Analysis Summary (IFAS):

No. Internal Factor Weight Rating Weighted


Score
Strengths:
1. Return on capital expenditure .12 4 0.48
2. Success of new product mix .09 4 0.36
3. Strong brand awareness .12 4 0.48
4. First mover advantage .06 3 0.18
5. Skilled Labor Fore .09 3 0.27
6. Wide geographic presence .13 3 0.24
Weaknesses:
1. High turnover of employees .05 1 0.05
2. Low investments customer services 0.4 1 0.04
3. Business Model .12 2 0.24
4.  Declining market share .07 2 0.14
5. Gross Margins and Operating Margins .06 1 0.06
6. Declining per unit revenue .06 1 0.05
Total Weighted Score 1.00 2.71

We may deduce from the chart above that Return on capital expenditure and Strong brand
awareness, as well as Success of new product mix and Skilled Labor Force are the most
important internal characteristics.
The total weighted score for internal factors is also known to be 2.71. It means that Airbus's
internal situation is worse than the average score (3.0) and that the company should focus on
its strengths and try to make its weaknesses less noticeable. The scanning of the outside
world gives us the EFAS, or External Factors Analysis Summary. Airbus gave the weight and
grade based on how well each factor responded to the opportunity and how well the risks
were kept to a minimum.
The External Factors Analysis Summary (EFAS) table is as follows:

Type Strategic Factors Weight Rating Weighted


Score
S1 Return on capital .12 4 0.48
expenditure
S1 Success of new product mix .09 4 0.36
S3 Strong brand awareness .12 3 0.36
W1 Business Model .12 2 0.24
W2 Declining market share .07 2 0.14
O1 Accelerated technological .14 4 0.56
innovations 
O2 Internet .11 3 0.33
O3 Local Collaboration .09 2 0.18
T1 Political Uncertainty .11 3 0.33
T2 Increasing competition .15 4 0.60
Total Score 1.00 3.11
No. External Factor Weight Rating Weighted
Score
Opportunity:
1. Internet .11 3 0.33
2. Local Collaboration .09 3 0.27
3. Accelerated technological .14 4 0.56
innovations 
4. Rapid Expansion of Economy .02 1 0.02
5. Increasing government regulations .10 2 0.20
Threats:
1. Competitive pressures .15 3 0.45
2. Changing political environment .11 2 0.22
3. Growing technological expertise .14 4 0.56
4. Saturation in urban market .10 2 0.20
5. Bad Trade Relation .04 1 0.04
Total Weighted Score 1.00 2.85

From the table above, we can conclude that the most affect factors from external factors are
Accelerated technological innovations,Internet , Local Collaboration, affective opportunity’s
whereas, Increasing Competition , Changing political uncertainty, Saturation in urban market
also most affective threats. The total weighted score for external factors is also known to be
2.85. It means that the outside conditions of this industry are worse than the average score
(3.0) and that they should take advantage of the situation.
The SFAS Matrix is a grid that brings together the most important outside and inside factors.
EFAS and IFAS tell us about the most important parts. The EFAS and IFAS tables, as well as
the SFAS Matrix, were made to fix what people didn't like about the SWOT Analysis. For a
person making a strategic decision, these strengths, weaknesses, opportunities, and threats
need to be boiled down.
The Strategic Factors Analysis Summary Matrix is shown below:
From the SFAS Matrix, the company can know the most affect factors from strategic factors
are Diverse Revenue models, Strong brand recognition. Company need to take care competitive
pressure and Changing political environment. Accelerated technological innovations is their grate op
portunity for them. The total weighted score of SFAS is 3.11 It means the condition of Airbus
Company in overall is above the average score (3.0).

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