This document provides a strategic analysis of Pakistan International Airlines (PIA). It includes PIA's vision to be a world-class airline, as well as analyses of PIA using PEST (Political, Economic, Social, Technological factors), Porter's Five Forces model, SWOT (Strengths, Weaknesses, Opportunities, Threats) and BCG matrix. Key points analyzed include PIA's monopoly in Pakistan, high costs, debt burden, opportunities in potential markets, and threats from rising fuel prices and strong competition from airlines like Airblue. The document is presented by Farah, Nargis, Imran and Izhar.
3. TO BE PRESENTED …………
Mission
Vision
Pest analysis
SWOT analysis
Porter’s five competitive forces
BCG matrix
4. INTRODUCTION
PIA ( Pakistan International Airline )
Birth of a Nation ,Birth of an Airline .
Formedon 10th january 1955 .
1959 golden year of PIA Nur Khan as managing director.
5. 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
6. Company Name :Pakistan International
Airline
Nature of Business :Airline Service
Target group :middle
class/traders/businessmen
positioning : Pakistan's largest airline
7. 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 .
8. PEST ANALYSIS
Pest analysis is a business
measurement tool .
These four factors greatly affect
the operational activities of PIAC.
9.
10. 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.
11. Political instability reduces the number
of visitors .
Increase in number of people
immigrating to developed countries.
12. 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 .
13. 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.
14. Pakistani youth are more attracted towards entertainment in
flight.
Act of patriotism to select national airline for flight.
15. 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.
16. Business plus lounges are equipped with the latest
magazines , newspapers, internet access, cable television
and snacks.
17. 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.
18. 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.
19. 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.
20. 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
21. 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
22.
23. STRENGTHSStrengths are found in the intern
al environment of the organizatio
n. 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 :
26. WEAKNESS
Weaknesses are also found in the inte
rnal 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 :
27. Lack of brand promotion
Higher operator cost
Debt burden
Burden of employees
28. 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:
29. Having maximumroute and destination
Attracting customer through…..
Huge potential market
Better training programs
GROWING DEMAND OF LOW COST AIRLINES
30. 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:
31. 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