SWOT Analysis of Ethiopian Airlines

Ethiopian Airlines is a flag carrier Ethiopian airline and aviation company, wholly owned by the Ethiopian government. The airline started business in 1946. Today, we’ll discuss the SWOT analysis of Ethiopian Airlines; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.

Products and services portfolio of Ethiopian Airlines

• Air travel
• In-flight entertainment
• Food and drink
• Economy class
• Cloud nine
• Lounges

Subsidiaries of Ethiopian Airlines

• Ethiopian Sky Technologies
• DHL Ethiopian Airlines Logistics Services
• Zambia Airways
• Nigeria Air
• Malawi Airlines
• Asky Airlines

Statistical facts and figures of Ethiopian Airlines

• Annual revenue: 6.1 billion USD (2023)
• Net income: 1.049billion USD (2023)
• Employees: 18000
• Fleet size: 145aircrafts
• Destinations: 155

Competitors of Ethiopian Airlines

• The Emirates Group
• T3 Aviation Academy
• Lufthansa Aviation Training
• Kenya Airways
• Delta Airlines
• AirBridgeCargo Airlines
• Air Canada
• Quikjet Cargo

The SWOT analysis of Ethiopian Airlines would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Ethiopian Airlines SWOT analysis as a business strategy analysis example company as follows;

Strengths of Ethiopian Airlines

Some of the main internal strengths in the Ethiopian Airlines SWOT analysis example company as business strategy analysis are as follows;

Large Network

Ethiopian Airlines has established a very large market network. It comprises of providing 155 passenger destinations and 68 cargo destinations to the customers. The large market network helps the airline to serve a wide range of customers in the global market.

Central Hub

Addis Ababa Bole International Airport of Ethiopian Airlines has a very unique and strategically competitive location. It is the main central hub between, India, Latin America, and South Asia; India, Intra-Africa, and South Asia. The strategic location gives the company a competitive advantage by allowing it to attract a wide range of customers.

Fleet Size

Ethiopian Airlines has established a very large fleet size comprising approximately 145 aircraft. The large fleet size helps the company to serve and target a wide range of customers and include new destinations and routes in its portfolio.

Brand Portfolio

Ethiopian Airlines has developed a well-diversified business and brand portfolio. It comprises of subsidiary brands like Zambia Air, Nigeria Airlines, Asky Airlines, Malawi Airlines, and others. The large brand portfolio shows the company’s strength and its reliance on multiple brands as its sources of sales and revenue.

Finances

Ethiopian Airlines has developed a strong financial position comprising an annual revenue of approximately 6.1 billion USD. The solid financial backing helps the company to take on various new projects and handle any type of market and economic disruption.

Weaknesses of Ethiopian Airlines

Some of the main internal weaknesses in the Ethiopian Airlines SWOT analysis example company as business strategy analysis are as follows;

Controversies

Ethiopian Airlines has been engaged in various types of controversies like avoiding particular African ethnic groups, military activities, and over-involvement of the government. Such controversies are negatively impacting the brand image and reputation of the airline in the international market.

Accidents

Ethiopian Airlines has had numerous accidents over the years, and it caused hundreds of innocent lives. The high number of incidents and accidents would push away many new potential customers, and they would switch to another airline that is safer.

Opportunities for Ethiopian Airlines

Some of the main available opportunities in the Ethiopian Airlines SWOT analysis example company as business strategy analysis are as follows;

Market Expansion

Ethiopian Airlines should expand its airline business into new regions, countries, and markets across the world. The global market holds great growth potential for air traveling; market expansion would help the company to increase its sales, network, and growth.

Portfolio Expansion

Ethiopian Airlines should expand its product, service, and destination portfolio by launching new types of services. The portfolio expansion would help the aviation brand to target new segments of the customer market with diverse needs and requirements.

Strategic Alliance

Ethiopian Airlines should develop strategic alliances and partnerships with other airlines and aviation companies. The joint venture and collaboration of resources would help the company to increase its network and sales.

Threats to Ethiopian Airlines

Some of the main potential threats in the Ethiopian Airlines SWOT analysis example company as business strategy analysis are as follows;

Competition

Ethiopian Airlines is facing tough competition from other competitive airlines like Emirates Group, Lufthansa, Kenya Airlines, and Delta Airlines. They all have established a strong market share and a very loyal database of customers in the airline industry. Their market presence in the African region is negatively impacting the sales and growth of the brand.

Regulations

The global aviation industry’s regulations are very strict. Ethiopian Airlines should comply with the global aviation industry’s regulations, regularly perform repair and maintenance of its aircraft, and upgrade its aircraft to avoid any type of accidents.

Conclusion: Ethiopian Airlines SWOT Analysis Example Company |SWOT Analysis of Ethiopian Airlines |Business Strategy Analysis

After an in-depth study of the swot analysis of Ethiopian Airlines; we have realized that Ethiopian Airlines is the world’s leading African aviation brand. If you are learning about Ethiopian Airlines SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.

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