TAM Airlines SWOT Analysis, USP & Competitors

Posted in Airlines, Total Reads: 2115
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SWOT Analysis of TAM Airlines with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

TAM Airlines

Parent Company

LATAM Airlines Group

Category

International

Sector

Airline

Tagline/ Slogan

Passion to fly and serve

USP

One of the Largest Brazilian Airline

STP

Segment

First time Flyers / Cost sensitive customers

Target Group

Middle class and Upper middle class

Positioning

An affordable airline pan Brazil

SWOT Analysis

Strengths

1. It was the first airline to introduce a frequent flier program in Brazil which is now used by around 9 million people
2.  With a fleet size of over 150+, it has a strong presence in  Brazil, Paraguay, Europe, North and South America.
3. Merging with LAN Airlines has made it possible to serve more destinations with better efficiency

4. TAM was the first Brazilian airline to get an IOSA certification (International Operational Safety Audit) granted by IATA (International Air Transport Association)
5. Provides flights to 60+ destinations

Weaknesses

1. Very less presence in large Europe and Asian market
2. TAM is highly dependent upon the macroeconomic stability and government intervention in Brazil

Opportunities

1. Expansion in Asian market
2. Leverage merger with LAN airlines to strengthen presence in American market
3. Establishing kiosks in subways of Brazil to cancel/book tickets and hence increase accessibility for Brazilian population

4. Leverage association with Casas Bahia, Brazil's largest non-food retailer to attract low-income customers

Threats

1. Strong competition in Europe and America

2. Increasing Fuel and Labor cost
3. Fluctuating economic scenario of BRIC affecting number of flyers

Competition

Competitors

1. Gol Linhas

2. Webjet
3. American Airlines
4. Avianca Brazil


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