SWOT IDENTIFICATION OF NOVO AIR

STRENGTHS
1. Efficient flight scheduling.
2. Novo airplanes are safer and reliable in comparison to the other planes, and are less likely to
cancel any flights in stormy/hazardous weather.
3. Novo Air has secured international air traffic rights.
4. Differentiated service as Novo is the only airline that provides luxury service.
WEAKNESSES
1. They have only three airplanes, which is lesser than the number that most other airlines
possess.
2. Capacity of the airplanes that Novo Air has is lesser than the competing airplanes.
3. Lack of prior experience since Novo Air is new to the field.
4. Ticket prices are relatively higher than the other competitors.
5. Novo Air lacks the short takeoff and landing (STOL) aircrafts which would allow them to
expand operation in the areas with shorter runways and this is a lacking of Novo Air.
6. Novo Air does not have any internationally accreditation or recognition.
OPPORTUNITIES
1. Economic growth of Bangladesh in terms of GDP is appreciating and this increased the
purchasing power of the public. This would allow the people to use the airlines and those who
used to use buses, trains, etc. would resort to domestic airplanes.
2. There is a huge possibility of domestic market expansion as Bangladesh Government has
promised to set up new domestic airports in different parts of the country such as Nilphamari,
Sayyadpyur, etc.
3. Due to economic expansion and globalization, more and more foreigners are visiting Bangladesh
and they would prefer airlines more than the traditional road transportations.
4. Lately, a major competitor experienced a scam with some falsified travel agencies which
hampered their brand value.
5. Huge traffic in the roads.
THREATS
1. Aviation industry is a highly government regulated industry.
2. Possibility of upcoming new entrants in the industry.
3. Too many indirect competitors (Luxury buses, coaches, trains, etc.).
4. Continuously rise in fuel prices.
5. One of the competitors offers best deals for cheap ticket by using sky scanner which is a travel
search engine as a result, increasing their sales simultaneously.
6. Political unrest in Bangladesh can negatively affect the flight schedules and this means that
Novo Air would be losing money.
7. Airplanes getting missing in recent times are a threat since the planes have not been traceable
and have not been found till date.




PORTERs FIVE FORCES OF COMPETITION (Sixth force included)
Forces Impact
Threat of new entrants Moderate
Bargaining power of suppliers High
Bargaining power of buyers Moderate
Threat of substitutes Low
Threat of rivalry Moderate
Force of compliment High


PESTEL ANALYSIS OVERVIEW
Political : Negative
Economic : Positive
Social : Positive
Technological : Positive
Environmental : Negative
Legal : Positive

CO MPETITORS ANALYSIS
3 Is:
Immediate
Regent Airways
United Airways
Biman Bangladesh Airlines
Impending
US-Bangla
A company under Bashundhara Group
Invisible IndiGo
Jet
Air Odisha
Square
Pran

Components of External Analysis:
1. Customers: The business people, higher class and higher middle class.
2. Competitors: US Bangla Airlines, Regent Air, United Airways, Biman.
3. Technology: Good quality and high technology aircrafts, good technological use in ticketing,
booking, canceling of journey.
4. Regulation: Main regulator in Civil Aviation Authority.
5. Major uncertainties: Bad weather, political disturbance, technical error
6. Suppliers: Oil companies, food suppliers, booking agents, local liason office.
7. Potential partners: maintenance engineers, ground staff, ATC people,

Components of Internal Analysis:
1. Current performance: Good revenue generation and good time management. Providing superior
flying experience than the competitors.
2. Brand Power: High brand power along with strategic alliance with business giant like GP.
3. Product portfolio: Single product line with single category of aircraft.
4. Technical mastary: upgraded technology than the other competitors in aircraft.
5. Company culture: Highly customer driven with quality service servicemaintainence.
6. Cost structure: High cost rather than some competitors.
7. Employee skill: Efficient pilots, active flight attendents, good ground employees.
8. R n D pipeline: Less chance to bring variation in main business instrument.

Customers Technology
petential
partners
Suppliers Opportuities




Competitors
Major
Uncertainities
Regulations
Threats
Strength
Brand Power
Technical
Mastary
Signle
product line
Current
performance



INTERNAL AND EXTERNAL ANALYSIS LEADING TO OVERALL ATTRACTIVENESS OF THE INDUSTRY:






+ + =

weakness
R n D
pipe line
Cost
Structure
PESTEL ANALYSIS
PORTER
3
Is
(C
o
m
p.)
STRENGTHS AND
WEAKNESSES
OPPORTUNITIES AND
THREATS
INDUSTRY IS
ATTRACTIVE