KLM SWOT Analysis, Competitors & USP

SWOT analysis of KLM analyses the brand by its strengths, weaknesses, opportunities & threats. In KLM SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like KLM to benchmark its business & performance as compared to the competitors. KLM is one of the leading brands in the airlines sector.

The article below lists the KLM SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the KLM SWOT Analysis:

SWOT Analysis of KLM

For KLM, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

KLM Strengths

The strengths of KLM looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of KLM :

1. KLM is a very positive image amongst the customers
2. Besides Sky Team,KLM has code-sharing agreement with many other airlines
3.  Good brand image because of KLM AirCares, a programme that aids underprivileged children
4. Average age of fleet is less which comprises 200+ aircrafts

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

6. Merger of KLM and Air France has made them a powerful force in the airline industry

7. More than 35000+ employees are with the airline

8. KLM has a reach to more than 140 destinations worldwide

KLM Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the KLM SWOT Analysis:

1. Intense competition means limited market share growth for KLM

2. Past accidents and incidents have often hurt the brand image

KLM Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in KLM SWOT Analysis:

1. Opportunities for KLM by expansion in the low cost carrier 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

KLM Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of KLM are as mentioned:

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 thereby affecting KLM 's business

3. Increasing environmental concerns may lead to higher taxes

KLM Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 13 competitors of KLM:

1. Air India

2. Singapore Airlines

3. Etihad Airways

4. Malaysia Airlines

5. Qatar Airways

6. Qantas Airways

7. Lufthansa

8. British Airways

9. Turkish Airlines

10. Air France

11. Virgin Atlantic

12. United Airlines

13. Emirates

Hence this concludes the KLM SWOT analysis.

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About KLM

KLM Overview
Parent Company	Air France-KLM
Category	International
Sector	Airlines
Tagline/ Slogan	Journeys of inspiration
USP	KLM is one of the oldest airline in the world still operating under its original name
KLM STP
Segmentation	People looking for comfort and punctuality
Target Market	Upper middle class urban
Positioning	Oldest operational airline which has the maximum experience

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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