SWOT Analysis-Internal Factor

STRENGTHS Strengths are found in the internal environment of the organization. They are the backbone of an organization. Strengths of an organization can over come any kind of weaknesses that the organization is facing. PIA has a number of strengths due to which it isstill one of the leading airline in Pakistan. These are as following: 1) PIA has status of being Flag Carrier of Pakistan. 2) Highest Market Share at domestic network. 3) Multilingual Staff on Board. 4) Booking Offices in all major cities both at domestic and International. 5) PIA has well established brand as its oldest airline in Pakistan. 6) Subsidized fares. 7) Halal meat available at all flights.4

Great People to Fly With8) Electronic ticketing by web and through SMS. 9) Highly Professional Staff. 10) Having Governments protection.

WEAKNESSES Weaknesses are also found in the internal 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 asfollowing: 1) Old aging fleet of PIA causing higher operating cost. 2) Huge burden of Employees which cause financial burden. 3) Inadequate space on the aircraft. 4) Charging of higher fare as compared to competitors. 5) Lack of marketing activities as compared to competitors. 6) 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 usedaccording to the business being run. An opportunity recognized and utilized at the right timewill be the strength of tomorrow. Such kind of opportunities also exists for PIA in its externalenvironment. 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 generatehuge amount of Revenue with higher profit.5

Great People to Fly With3) 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 MobileReservations 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 arecertain threats being posed by the external environment. Some of them are as under: 1) Negative rising perception about the country, regarding terrorism. 2) Political instability and law and order situation.

3) Rising fuel prices in the world. 4) Over staffing at all levels. 5) Frequently rising Airlines fare. 6) Fast growing domestic and international competitors. 7) Effective promotion strategies adopted by other competitors like Emirates andShaheen anr Airblue.