China Southern Airways SWOT Analysis, Competitors & USP
Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of China Southern Airways analyses the brand by its strengths, weaknesses, opportunities & threats. In China Southern Airways 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 China Southern Airways to benchmark its business & performance as compared to the competitors. China Southern Airways is one of the leading brands in the airlines sector.
The article below lists the China Southern Airways SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the China Southern Airways SWOT Analysis:
For China Southern Airways, 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.
China Southern Airways Strengths
The strengths of China Southern Airways 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 China Southern Airways :
1. Largest air transport network in China with access to over 150 cities and over 600 domestic routes.
2. Centrally located in Guangdong for easy access to the rapid industrial growth of the Pearl River Delta.
3. Culturally, politically, linguistically, and historically synchronized with the Chinese market and the changes occurring within Chinese air transport.
4. Largest domestic cargo carrier
5. History as State Owned Entity and residual access and political access with the Civil Aviation Administration of China.
China Southern Airways 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 China Southern Airways SWOT Analysis:
1. Small air cargo business segment and limited experience in air cargo freight and overnight transport logistics.
2. Undergoing continuous business reorganization and cultural change due to Chinese air transport deregulation, recent acquisitions, and alliances.
China Southern Airways 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 China Southern Airways SWOT Analysis:
1. Utilize first-to-market advantage to build customer loyalty and to “lock-in” air cargo customers via contract and real-time technology before competitors commence expanded services in Chinese domestic market.
2. Utilize cultural background to implement Chinese air cargo information technology that reduces costs for independent shippers/forwarders in China through real time shipment communication.
3. Establish communication centres to accurately predict package/cargo volume and to reduce wasted belly space on domestic routes.
China Southern Airways 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 China Southern Airways are as mentioned:
1. Increased domestic Chinese competition and resultant decreases in scale economies.
2. Inadequate grants of slot space and access to international hubs to compete internationally in the absence of further follow-through with alliances.
3. Increased competition from substitutes as Chinese surface transport infrastructure develops.
4. Jet Fuel price increases causing slowing of Chinese economy and overcapacity of air cargo carriers.
China Southern Airways Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of China Southern Airways:
One of Asia's largest airline in terms of both fleet size and passengers carried
China Southern Airways STP
Customers looking for punctuality and efficiency
Middle class / Upper middle class
Smooth and efficient operations
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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