KLM SWOT Analysis, USP & Competitors

Posted in Airlines, Total Reads: 5133
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SWOT Analysis of KLM with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

KLM

Parent Company

Air France-KLM

Category

International

Sector

Airlines

Tagline/ Slogan

Journeys of inspiration

USP

Oldest airline in the world still operating under its original name

STP

Segment

People looking for comfort and punctuality

Target Group

Upper middle class urban

Positioning

Oldest operational airline which has the maximum experience

SWOT Analysis

Strengths

1. A very positive image amongst the customers
2. Besides Sky Team, the company has code-sharing agreement with 28 other airlines, thus reach of KLM is vast
3.  Good brand image because of KLM AirCares, a programme that aids underprivileged children
4. Average age of fleet is less which comprises 210+ aircrafts

5. Good advertising and branding have made it a top brand recall

Weaknesses

1. Job losses and capacity cuts have led to job insecurity causing concern
2. The Dutch government having significant voting rights causes operational inefficiency

Opportunities

1. Opportunities for expansion in the LCC segment

2. More efficient aircrafts in development by both Boeing and Airbus: greater passenger capacity can lead to reduced costs per seat

3. Sustainable growth opportunities, it will help to gain access to any market that will increase the quality its network

Threats

1. Government bailouts for competitors may lead to unfair competition also governmental interference with respect to consolidations is  a problem
2. Local airlines could pick up short-distance non-business passengers.

Small, privately-owned charter airlines in the US could compete for

business

3. Increasing environmental concerns may lead to higher taxes

Competition

Competitors

1. Lufthansa
2. AMR Corporation
3. British Airways



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