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Porter's Five Forces Analysis Of Match Airlines

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KLM Royal Dutch Airlines established in 1929 and it is one of the foremost airlines in the world. The company has over 200 aircrafts and offers services to all countries in the world. The airline employs 32,000 staff and earns huge revenue every year. The main focus of the firm is to provide superlative services and memorable experience to its customers. The company gives importance to its employees and customers so they feel acknowledged, recognized, and touched. KLM Company merged with Air France in 2004; and it is operating on three concepts such as AFKL Group, Airlines, and core business. KLM is performing virtuous in European airline industry after merging with Air France. The company struggles to achieve profitable growth that assists …show more content…

A company can identify strategic potential profitability through this model. Organizations can take advantages of their strong position in the market or improve a weak situation as well by making careful decisions in future. Following is a detailed Porter 's five forces model of KLM Company. Threat of New Entrant
The airline industry is one of the premium sectors, so it contains rules and regulations both at domestic and international level. Entering into this industry is difficult because it requires large capital investment, experienced employees, and large customer base. Starting a new airline business may take several years because it requires government approval as well. Apart from that, KLM is operating from many decades so competing with this company is not easy. The threat of a new entrant for KLM is low because there are different types of entry barriers.
Competitive …show more content…

SWOT ANALYSIS AND CONFRONTATION MATRIX
The SWOT analysis of the company identifies strengths, weaknesses, opportunities, and threats. The detailed SWOT analysis of KLM is given below,
Strengths
KLM Company has a strong brand image amongst customers, and it is operating for many decades with the help of the experienced staff.
The company has signed a code-sharing agreement with other companies, and it is beneficial for KLM and other firms.
The company has about 200 aircrafts and offers a wide range of connecting flights.
KLM has over 35,000 employees, and they are satisfied with the management and operations of the company.
The company reaches over 150 destinations worldwide and expected to increase business in upcoming years.
The organizational structure of KLM is effective and the company has financial and technical potential to run operations carefully.
The company uses strong marketing and promotional strategies to increase customers.
Weaknesses
Competition in the market is high, so KLM has a low market share.
Brand image is affected due to the past

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