SWOT Analysis -Air Leo business plan
Executive Summary – The executive summary begins with analyzing the general aviation environment in Europe where Air Leo is set to launch commercial operations. The executive summary give details of why investing in the airline industry in Europe could become a lucrative business. The major drive in the European market is the existence of underserved markets with high demand for air travel will be implemented (“Air Leo,” n.d).
Objectives – This section gives the primary objectives of the proposed airline, Air Leo. The objectives are clearly stated and can be quantified, for instance the financial rewards expected from the entire project.
Mission statement – Air Leo’s proposed mission is clearly stated. The airline’s mission statement declares the company’s key purpose or focus and is unchanged over time. The mission statement describes the reason why the company was formed. The plan also outlines how the proposed mission will be accomplished.
Keys to success – This section outline the critical success factors for the proposed airline. The critical success factors are outlined according to the strength of each factor. One of the critical success factors identified is the hiring of a highly qualified management team that will spur the airline to success (“Air Leo,” n.d).
Company summary – This section gives the background of the proposed airline. The section gives details of how the proposed company came to be. For example, the proposed airline may be subsidiary of a larger carrier. The section also gives details of the opportunities to be seized in investing in the region.
Company ownership – This section gives details about the legal ownership of the proposed airline. The section also reviews the legal environment surrounding ownership of companies in Europe.
Start-up summary – This section outlines the total start-up costs to be incurred for the airline to begin operations. Start-up summary contains budgets of expenditures and expected streams of incomes. The section gives crucial details such as sources of funds (“Air Leo,” n.d).
Company location – This section highlights the proposed headquarters for the new airline. The report also contains the considerations taken in place while choosing the best location.
Service analysis – This section highlights the type of services to be offered by the airline.
Competitive analysis – This section is a detailed analysis of the competitive environment in the new market.
Technology – This is an analysis of application of new technology by the new carrier. The section reviews features such as e-reservations that the airline will employ.
Market analysis and segmentation – This section contains a thorough market analysis for planning purposes. This helps in determining the most profitable routes (“Air Leo,” n.d).
Marketing and promotion strategy – This section gives details of the promotional activities to be conducted in creating awareness of the new carrier.
Pricing strategy – This section contains information on prices of tickets to be charged on various routes.
Sales forecasts – a sales forecast helps the management project expected incomes.
Organizational structure – the organizational structure outlines hierarchy in the organization. It is used to determined the leadership structure in the organization, determining those who ore in charge of key decision making.
Key financial indicators and expected cash flows – This gives the expected streams of income over a period of time (“Air Leo,” n.d).
SWOT matrix – strengths
- Air Leo will be a low cost carrier in the industry.
- Application of new technology such as e-ticketing will reduce operational costs.
- Acquisition of new fleet will enable the company operate planes with the latest technology and high fuel efficiency.
- Stiff competition from other established airlines in the European market.
- Low customer awareness on the existence of the airline and the services it offers.
- Weak competitive edge being relatively new.
- The airline can expand into the international market with ease.
- The airline has the potential to partner with other international airlines and hence expand.
- There is an increase in demand in domestic travel within Europe.
- The company can employ mobile technology that enables customers to book flights through their mobile devices hence reduce booking costs.
- There is high competition in the low cost market which the airline hopes to penetrate.
- Fluctuations in fuel prices leading to losses.
- Increased government regulations leading to additional costs.
- High security costs due to terrorism.
Air Leo, (n.d). Business plan. Retrieved from http://www.bplans.com/airline_business_plan/services_fc.php