12/14/2019

SWAT
AND
PEST
SWAT & PEST ANALYSIS OF PIA
ANALYSIS

SWOT AND PEST ANALYSIS OF PIA | ZAR GUL KHAN

 SWOT ANALYSIS OF PIA:

STRENGTHS:
PIA has number of strengths
due to which it is still one of the
leading airline in Pakistan.
It has huge financial advantage
because it has 87% shares with
government of pakistan.
It has highest market share at
domestic network.
Reach to international destination.
PIA has well established brand as it
is one of the oldest airline in
Pakistan.
  It has broader target market in a house
that competitors are few domestically.
 It has booking offices in all major
cities both domestically and
internationally.
 It has having Government protection.

WEAKNESS:
Following are some of weaknesses
of PIA.

 Old aging fleet of PIA causing higher

operational cost.
 Corruption is at higher level and lack
of accountability.
 High amount of debt.
 High influence of government officials
on rules and regulations.
 Huge burden of employees which
cause financial burdens.
  It offers free travelling to most of
government officials.
 Charging of higher fares as compared
to competitors.
 Low salary of engineers and high
salary of pilots.

OPPORTUNITIES:
Some of the opportunities of
PIA that exists are given below.

 PIA has huge potential market in

Middle East if PIA upgrades its fleet.
 Speedex(cargo) which is domestic can
be international.
 PIA has largest domestic network and
by proper rate planning PIA can
generate huge amount revenues with
higher profit.
  PIA generate more revenues by
attracting more customers through
web and mobile reservation system.

PEST ANALYSIS
POLITICAL ANALYSIS:
Political facts and
regulations are most crucial in case of
PIAC, the reason is it being help by
government of Pakistan in majority share.

 Destabilzed country.
 Dictatorship.
  Political disorder in Afghanistan has an
adverse affect on PIA.
 Government policy to support war
against terror has increased insecurity
level in Pakistan which means fewer
visitors come to our country and
hence less revenue for PIAC.
 As it is owned by government so higher
officials and management are basically
supporters of this particular
government.
 Privatization of PIA, things will become
better.

ECONOMICAL ANALYSIS:
PIAC mostly dependent on
customer revenue, hence economic
conditions of its target market is very
important in its profitability and strategy
formulation.
  Pakistan per capita income is
decreased and is expected to
decrease even more in coming years
hence decreasing consumer buying
powers.
 Interest rate in Pakistan is very high
hence making it hard for investors to
invest in PIAC.
 84 millions Pakistanis are belong to
upper class, they are the customers of
PIAC which is a good indication if seen
with the fact that not many
international airlines are present and
working for Pakistan.

SOCIAL ANALYSIS:
Socially Pakistan is very diverse
and dynamic even though there are many
social and cultural changes going in our
country these days, as always some of
these changes to PIAC.

 There is an explosive elevation in

youth education level, hence the
understandability of services has
grown, which would effect all the
business including PIAC in coming
years.
 A few years back there was instability
in Pakistan and therefore more and
more people are immigrating to other
countries through PIAC.Now Pakistan
becomes stable day by day and people
are coming back to Pakistan and that
is another great opportuinity for PIAC
these days.
 As the number of people want to
perform Hajj and Umrah is increasing
 day by day, this could also be an
opportunity for PIAC.

TECHNOLOGICAL ANALYSIS:
In aviation industry
technology is what runs the business, this
means technology is of key importance
and customers retaintion.

 Government of Pakistan is considering

reviving railways, introducing new
modern tracks.If this is done then the
sole profit taker of PIAC the cargo
service called speedex will a threat.
 Air blue is currently buying new
airbuses for its international fleet this
will also become a serious threat to
PIAC.
 PIAC currently has planes from Boeing
which is consider as a fuel guzzler
 when compared to air bus used by Air
Blue.
 As most of the planes in PIAC fleet has
aged due to which they have an
accident, so PIAC must update or buy
new planes to avoid accidents.