Student ID Number

Ayesha Qudrat
Student Full Name

Programme Title Extended MSc IB/ MSc Marketing

(Graduate Certificate)

Module Code and Title BMG625 ( 46639 ) Academic Skills for Business

Module Leader Thomas Kotlinski

Class Tutor Xxxx Xxxxx

Coursework Title

Academic Declaration:
Students are reminded that the electronic copy of their essay may be checked, at any
point during their degree, with Turnitin or other plagiarism detection software.

Word Count 2136 Date Submitted

A SWOT REPORT ON
Wizz Air
Table of Contents
List of figures
 Introduction
 SWOT Analysis
1. Strengths
2. Weaknesses
3. Opportunities
4. Threats
 Business Environment
 Recent Developments in the Selected Company
 Conclusion and Strategic Recommendations for
the Company
References
List of figures:
1. SWOT matrix
2. Growth chart
3. Competition with Ryanair
4. Low-cost privileges over other airlines
5. Aviation threats
6. Revenue contributors
7. Predicted vs Actual report
8. Recommendations
 Expanding routes
 Improving customer services
 Offering discounts
1. Introduction to Wizz Air:

Wizz Air was started by Jozsef Janos Varadi. He had been the head of Malev Airlines; a
sagging national carrier in Hungary between 1999 and 2003 when he left it. Later on that
same year, Wizz formed an alliance with five others who were experienced operators in
the airline industry.(Anon,2024)

This is a Hungarian low-cost airline which has grown very quickly to become one of the
biggest low-cost airlines in Europe One of Middle and East. Wizz Air’s headquarters are
in Budapest where it operates over 100 aircraft serving more than 150 destinations across
forty-four nations. Wizz Air offers budget-friendly air travel at competitive prices
including free flights. This airline is laser-focused on making travel affordable for all,
hence making itself a favorite choice for vacationers as well as businesspeople. (Dennis,
2023)

Wizz Air is a leading firm within the European aviation market, it has always focused on
providing cheap airfare services. The development of its fleet for safe and comfortable
traveling of passengers through new locations within Europe has increased its status
among top low-cost airlines.

Wizz Air’s commitment to affordability and convenience continues to attract passengers

looking for cost-effective ways to explore a wide range of destinations across Europe and
beyond.

2. SWOT Analysis:
 (Yahoo, 2019)

1. Strengths:
Wizz Air's strong market position in Central and Eastern Europe, coupled with its extensive
route network, presents a significant competitive advantage. The airline's lean cost structure and
efficient operations enable it to maintain a strong foothold in the low-cost carrier segment.

Wizz Air's business model is predicated on maintaining high operational efficiency and low
overhead costs. This allows the airline to offer affordable travel options to its customers.

1. Geographical Focus: Focusing on Central and Eastern Europe gives Wizz Air a strong
regional presence. Wizz Air has been investing in fleet modernization, utilizing aircraft such as
the Airbus A320neo and A321neo, which are fuel-efficient and have lower operating costs
compared to older models. The company has consistently expanded its route network, offering
flights to a variety of destinations, increasing accessibility for passengers and creating more
travel opportunities. (Ahlgren, 2022)

2. Ancillary Revenues: Wizz Air effectively generates ancillary revenues through various
services such as baggage fees, priority boarding, seat selection, and in-flight purchases. With a
recognizable brand, Wizz Air is known for being a reliable low-cost airline, which bolsters its
market position. Wizz Air has been innovative in its approach to services, often being the first to
introduce additional options for passengers in its operating regions. (Brown & Wilson, 2022)

3. Robust Operational Performance: Wizz Air offers a customer loyalty program known as
WIZZ Discount Club, which encourages repeat business by offering discounts and deals to
members. Wizz Air boasts a strong operational performance with high load factors and
punctuality rates, which enhances customer satisfaction and reliability. The company has a
dedicated and skilled workforce, which plays a crucial role in its day-to-day operations and
overall success.

4. Effective Use of Technology: From a seamless online booking system to investment in IT

infrastructure, Wizz Air employs technology effectively to improve customer experience and
operational efficiency. Wizz Air utilizes aggressive marketing campaigns to reach a wide
audience, often promoting seasonal sales, new routes, and special fares.

Wizz Air's combination of operational efficiency, innovative services, strong regional focus, and
solid market presence constitutes its competitive strengths in the airline industry.

(Centre for Aviation, 2018)

 2. Weaknesses:
Even while Wizz Air has made great progress in growing its network, especially in
underdeveloped areas, it still has to contend with fierce competition and fluctuating fuel prices.
The company's aspirations for worldwide development may potentially be hampered by its low
level of brand awareness outside of Europe.
Being a low-cost airline, Wizz Air provides a basic service that, although economical, may lead
consumers desiring a more luxurious flying experience to select full-service rivals.

Wizz Air frequently operates out of smaller airports in order to save expenses. Although this
might result in poorer accessibility for certain consumers who would prefer principal airports
closer to city centers, it can also minimize airport prices. (Dimitri Uzunidis, Fedoua Kasmi and
Laurent Adatto, 2021)

Certain portions of the travel public may have the belief that low-cost airlines provide worse
service.
Ancillary services provide a sizable amount of Wizz Air's income. If changes in regulations were
to restrict the capacity to charge for these things, this dependency may become vulnerable. Since
customers frequently cut back on discretionary spending on travel as one of their first costs
during economic downturns, low-cost carriers (LCCs) like Wizz Air may be particularly
vulnerable. (Morrell, 2013)

Workplace disagreements are common in the aviation business. Any possible disagreements or
discontent among Wizz Air employees might cause operations to be disrupted and harm the
company's brand,
There are strict regulations governing the aviation sector. Significant financial ramifications may
arise for Wizz Air from modifications to laws or aviation regulations, including environmental
restrictions.
Seasonal variations can cause irregular cash flows in the tourism business. In order to
successfully address periods of low season, Wizz Air needs to manage its resources. (Ydersbond,
Kristensen and Thune-Larsen, 2020)
 (aero, 2022)

3. Opportunities:
Wizz Air's strategic focus on expanding its fleet and route network presents promising growth
opportunities, particularly in untapped markets within Europe and beyond. Additionally, the
increasing trend towards budget travel and the rising demand for air travel in emerging markets
create favorable conditions for the airline to capitalize on new opportunities.

1. Market Expansion: Wizz Air can continue to expand its market presence by entering new
territories, especially in regions that are currently underserved by low-cost carriers.

2. Fleet Expansion and Upgrades: Wizz Air can seek strategic partnerships with other airlines
for code-sharing and interline agreements to expand their network and offer passengers more
destinations. There is an opportunity for Wizz Air to diversify its services, adding more value-
added options for customers willing to pay for premium experience, even within the low-cost
business model. Wizz Air could explore the cargo transport sector to leverage unused cargo
space, especially considering the increased demand for air freight. (Decher, 2020)
3. Digital Innovation: Investing in digital innovation and enhancing the customer experience
through technology can improve efficiency and attract a tech-savvy demographic. Using data
analytics to understand customer behavior and preferences can lead to more targeted and
effective marketing campaigns. As environmental concerns become more pressing, there is an
opportunity for Wizz Air to invest in sustainable aviation practices and to become a leader in
eco-friendly air travel. (Westerman, Bonnet and Mcafee, 2014)

4. Public Perception: Wizz Air has the opportunity to improve public perception by focusing on
customer service, which can improve brand loyalty and market share. Expanding ancillary
services can increase per-passenger revenue, offering products like travel insurance, car rentals,
and hotel bookings. Expanding ancillary services can increase per-passenger revenue, offering
products like travel insurance, car rentals, and hotel bookings.

These opportunities can help Wizz Air grow its market share, revenue, and customer base,
counteracting weaknesses and taking advantage of the evolving airline industry landscape.
(Valeri, 2023a)
 (Centre for Aviation,
2015)

4. Threats:
Wizz Air's operations are under risk due to the airline industry's inherent vulnerability to
economic downturns, geopolitical disturbances, and regulatory changes. Furthermore, the
company's growth trajectory is made more challenging by the growing competition in the
European market from both established and low-cost carriers. Recessions and other economic
instability can drastically cut consumer spending on luxuries like travel, which would be bad for
Wizz Air's passenger count and profitability. In the very competitive airline sector, Wizz Air must
contend with the possibility of new low-cost airlines joining the market and of established rivals
growing their service areas and network. (Ydersbond, Kristensen and Thune-Larsen, 2020)
There are stringent laws governing the aviation sector. Wizz Air's operational expenses may rise
in response to modifications in aviation policy, taxes, environmental legislation, or safety
requirements.
Wizz Air's profitability may be impacted by foreign exchange risks associated with its
international operations, particularly if local currencies depreciate relative to the euro. Airspace
closures or limitations may result from geopolitical tensions and wars in some areas, which
would affect Wizz Air's operations and route network. Stricter emission standards brought forth
by growing environmental concerns may need more investment in fuel-efficient technology or
carbon offsets. Global health emergencies, like the COVID-19 pandemic, significantly lower
demand for air travel and may cause long-term shifts in travel patterns. (Demir, Dalgic and
Ergen, 2022)
Tighter security measures, higher expenses, and a decline in demand for air travel are all possible
outcomes of the danger of terrorism and related security concerns. Wizz Air is more vulnerable
to cyberattacks because of growing technological dependence, which can jeopardize client
information and business processes. A change in customer tastes might make Wizz Air's low-cost
business model unworkable, such as a rise in the desire for luxury experiences or
environmentally friendly travel alternatives. (Gossling and Upham, 2012)

These dangers show how Wizz Air must strategically prepare and adjust on a continual basis to
stay ahead of the competition and keep its position as the top low-cost carrier in the aviation
market.

(Anon, 2024)

(Runway Girl Network, 2019)

3.Business Environment
Wizz Air, a low-cost airline, in Central and Eastern Europe operates in a dynamic business
landscape shaped by changing consumer preferences, technological progress and regulatory
updates. The company faces competition from rivals like Ryanair and EasyJet as they strive to
capture market share. Key factors affecting Wizz Airs health include revenue growth,
profitability, cost management and liquidity. (Wizz Air, 2023)

. Adhering to regulations is vital for the company’s success while leveraging platforms and
advanced aircraft technology is crucial for staying competitive. External factors like GDP growth
and inflation also play a role in determining Wizz Air’s performance. Additionally social and
environmental concerns like sustainability practices impact the airline industry significantly.

(Breiner, 2015)

4.Recent Developments in the Selected Company

Leading low-cost airline in Europe, Wizz Air, has been prioritizing strategic development,
modernizing its fleet, implementing environmental programs, and adapting to the COVID-19
epidemic. Wizz Air has adjusted by introducing health and safety protocols, providing flexible
booking rules, and modifying flight schedules in response to obstacles like restricted travel
alternatives and operational delays. (Wizz Air, 2023)
To provide complete travel solutions, the airline has also made investments in digital
technology, enhancing its web platforms, and developing agreements with other airlines and
travel companies. (Malik, 2018). These modifications show Wizz Air's commitment to
expansion, sustainability, innovation, and adapting to evolving travel demands. (Valeri, 2023a)
 (blogs, 2022)

5.Conclusion and Strategic Recommendations for the

Company
In conclusion, Wizz Air stands at a critical juncture amidst the intricacies of the European
aviation sector, grappling with intensified competition, economic fluctuations, and evolving
consumer trends. However, the airline's strategic initiatives demonstrate a proactive stance
towards overcoming these challenges and sustaining its growth trajectory. By steadfastly
adhering to its low-cost business model and continuously refining operational efficiency, Wizz
Air solidifies its position as a cost-effective option in the market. "Wizz Air improves CDP
environmental impact ranking. (Varley, 2024)

Moreover, the strategic expansion of its route network into new and potentially lucrative markets
presents avenues for revenue diversification and minimizes reliance on volatile regions. The
airline's commitment to bolstering ancillary revenue streams further underscores its resilience
against external pressures. Despite the uncertainties posed by Brexit negotiations and economic
instability, Wizz Air's adaptive strategies and contingency plans exhibit a readiness to navigate
through turbulent times. Through effective risk management and diligent monitoring of market
dynamics, the airline endeavors to mitigate potential disruptions and sustain its upward
trajectory. (Anon, 2024)
In essence, Wizz Air's future success hinges on its agility, innovation, and unwavering dedication
to customer satisfaction. By capitalizing on strengths, addressing weaknesses, and seizing
emerging opportunities, Wizz Air is poised to not only endure but thrive amidst the complexities
of the European aviation landscape, emerging as a stalwart player in the industry for years to
come.

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