Marketing Assignments

Industrial Analysis of Airlift Pakistan 2020 | External Environment of Airlift

Industrial Analysis of Airlift Pakistan 2020

Introduction to Airlift

The introduction of smartphones with high-speed internet and the entrance of ride-hailing apps in Pakistan provide commuters with a source of safe and comfortable source of travel but with the rising fuel prices, the cost-benefit analysis shows that even these ride-hailing apps, sometimes go out of reach from of a common man. Every problem presents an opportunity so recently a group of young graduates from LUMS launched a smart bus service called Airlift.

Industrial Analysis of Airlift Pakistan 2020

Airlift is an app-based technology startup that offers a smart bus service tailor-made for daily commuters. With a fare of just 50 PKR, a reserved seat in an air-conditioned minibus and hundreds of routes spread all over Karachi and Lahore. Airlift is gradually becoming the first option of working professionals and students who have to travel in the morning and come back in the evening.

Industrial Analysis of Airlift Pakistan 2020

Airlift works exactly like the ride-hailing apps and the users after signing up can reserve their seats by selecting the desired routes and their pick up/ drop off locations. Available for both Android and iOS, the users are able to track the buses in real-time and make payments using their credit or debit cards.

Industrial Analysis of Airlift Pakistan 2020

PESTEL Analysis of Airlift 2020
Industrial Analysis of Airlift Pakistan 2020 | PESTEL Analysis of Airlift 2020

PESTEL Analysis of Airlift Pakistan 2020

Industrial Analysis of Airlift Pakistan 2020 | Political Analysis of Airlift
Industrial Analysis of Airlift Pakistan 2020 | Political Analysis of Airlift

Political Analysis of Airlift:

Implementation of certain taxes by the government recently had effected a major rise in the prices of fare by private transporters, especially Careem and UBER, Airlift being part of same industry will be entitled to pay these additional implemented taxes as well, which will affect their fare prices which Airlift has planned to be as low as possible so that anyone can consider Airlift as the perfect substitute of local transport.

Industrial Analysis of Airlift Pakistan 2020 | Economical Analysis of Airlift
Industrial Analysis of Airlift Pakistan 2020 | Economical Analysis of Airlift

Economical Analysis of Airlift:

Pakistan being an underdeveloped country makes its people always in trouble for the money, regular inflation and increasing unemployment are creating an unpleasant Economic Crisis in Pakistan. Rising prices of petroleum and CNG in making a problem for the transport industry and specially Airlift because it’s increasing their expenditure thus they have to increase the prices of Fares as well.

Most of the population in Pakistan barely afford better transportation, even if the difference in the prices would be very small that is why most of the people prefer to travel in huge crowded busses handing on the door because they can’t afford to travel in better transport like rickshaw and taxi, and this the main reason why we barely see any taxi services working nowadays. Airlift being part of the transport industry might be facing the same problem as well that’s why the number of seats is limited.

Industrial Analysis of Airlift Pakistan 2020 | Social Analysis of Airlift
Industrial Analysis of Airlift Pakistan 2020 | Social Analysis of Airlift

Social Analysis of Airlift:

The young generation, especially student mostly faces the difficulty to travel to their college and universities, especially female students find it really difficult to sue any public transport method because they mostly are overcrowded and with their usual stops at any points makes it difficult for the students to reach their college, universities on time.

Having the transport options like Careem and Uber doesn’t make any difference for the students who can’t afford to pay 300-500 on these rides when they just have to pay 20-30 in buses and chin chi. Initiating of Airlift can make their life easier with a fare on average of Rs. 40-60 which is quite affordable for the students even for the poor once.

Industrial Analysis of Airlift Pakistan 2020 | Technological Analysis of Airlift
Industrial Analysis of Airlift Pakistan 2020 | Technological Analysis of Airlift

Technological Analysis of Airlift:

Being part of a technological advance era, Airlift has firmly adopted the online sources to communicate with its clients, they are on 2nd in the row of adopting internet sources for the booking of the tickets after SWWL in the bus transportation mode.

The transportation industry, in general, is not very technological advance yet in Pakistan, most of the transportation modes like busses, coaches and rickshaw are still there running around on their own without any stop timing or route coverage timing, even the population of Pakistan is not really familiar with an online system that is why most of the middle and elder people and even young generation still prefer local transport which always is overcrowded and more time consuming, even when the price of Airlift is pretty reasonable and can be easily afforded by most of the population of Pakistan.

Industrial Analysis of Airlift Pakistan 2020 | Environmental Analysis of Airlift
Industrial Analysis of Airlift Pakistan 2020 | Environmental Analysis of Airlift

Environmental Analysis of Airlift:

Airlift can use some environmental friendly promos to accelerate their position in the market, as it’s been trending of Green Pakistan, Airlift can use green bus logo as an indication of green Pakistan or they can use some sort of gasoline that doesn’t affect create the pollution and can be suitable for atmosphere.

Legal Analysis of Airlift:

Airlift has to take care of the legal patent on its name so that no other companies can use their name and dissimilate their reputation in the industry, furthermore, they have to make sure about all labor rights and safety concerns that the government has implemented for any future loss.

Industrial Analysis of Airlift Pakistan 2020

Industrial Analysis of Airlift Pakistan 2020 | Porters Five Forces Model Airlift
Industrial Analysis of Airlift Pakistan 2020 | Porters Five Forces Model Airlift

Porter’s Five Forces Model Analysis of Airlift Pakistan 2020

Bargaining Power of Buyers:

  • Bargaining Power of Customer: Low Power for the customers to bargain because Airlift is already the cheapest source of transport in terms of value that they are providing, local and public transporters won’t be classified as their true competitor except for SWWL which is the only competitor they have in terms of value, so this doesn’t provide buyers much of the option to bargain about different services or prices.
  • Value Proposition: Airlift can be classified as high-value proposition transport facility because they’re charging around 10-20% more than any public transportation (Buses) and providing the facility of Air Conditioner and WIFI as well, although it’s not highly exceptional services still it’s worth having these facilities while transport.
Industrial Analysis of Airlift Pakistan 2020 | Bargaining Power of Supplier
Industrial Analysis of Airlift Pakistan 2020 | Bargaining Power of Supplier

Bargaining Power of Suppliers:

Suppliers of Airlift can be the Drivers that are providing their services whole day to Airlift, in terms of their bargaining power, so they would be having Low Bargaining Power as there is not many opportunities available for the drivers in the Pakistani market, either they can ride a Bus or Rickshaw which have a lower or tentative form of Salary or they can ride someone’s car which is also difficult because most of the people in Pakistan prefer driving by themselves and those who wants drivers need some sort of recommendation for the security concerns, so having the opportunity of fix and good income package doesn’t give the driver much leverage.

Industrial Analysis of Airlift Pakistan 2020 | Threat of New Entrant
Industrial Analysis of Airlift Pakistan 2020 | Threat of New Entrant

Threats of New Entry:

It doesn’t seem like that there is any sort of barriers for the entry in the private transportation industry, all you need is a good app and a bit of investment if you’re coming up with a bus transportation sort of idea, we have seen in the past that many new players have entered in the transportation market like BYKEA, SWWL, etc. If Airlift can manage to somehow achieve the economies of scale which can make their costs lower than others thus they would be able to offer the prices that no one else in the market is able to offer, that’s the only way to stop the new entrants in the market.

Industrial Analysis of Airlift Pakistan 2020 | Threat of New Entrant
Industrial Analysis of Airlift Pakistan 2020 | Threat of Substitute

Threats of Substitution:

It won’t be wrong to say that Pakistani’s are the master to reach their destination from any transportation mode, even if they have to hang on the super overcrowded buses or to sit on the roof of the bus or to take the life from bikers, they would do it to save their very single rupee, that’s why substitution threat is on its peak for Airlift, there are many substitutes available in the market like public buses, bikes, bike-sharing, chin chi. It won’t be possible for Airlift to capture all these audiences because the majority of them have no idea what online bus ticket registration is.

Industrial Analysis of Airlift Pakistan 2020 | Rivalry
Industrial Analysis of Airlift Pakistan 2020 | Rivalry

Competitive Rivalry:

Airlift doesn’t have any many competitors in the private market when it comes the values, pricing, and services they are providing, only BYKEA in terms of pricing and SWWL in terms of value and services can be classified are rivals, neither of them has the huge market share of far in the industry so it won’t be wrong to say that they are not in any competition so far none of them have no. of customers that they want to build their equity.

Industrial Analysis of Airlift Pakistan 2020

Industrial Analysis of Airlift Pakistan 2020 | SWOT Analysis of Airlift
Industrial Analysis of Airlift Pakistan 2020 | SWOT Analysis of Airlift

SWOT Analysis of Airlift Pakistan 2020

  • Strengths: The value proposition providing by Airlift is way too good, people can transport in the small bus having AC and WIFI facilities, plus it’s always on time and can help you reach the destination on time, furthermore the navigation system is quite well to helping the clients to track where the bus is and how long would it take to reach on the spot. These value propositions are not available right now on the given prices by Airlift, SWLL, Careem, UBER has these facilities too but they are quite and some are way too expensive then Airlift.
  • Weakness: The main weakness Airlift is facing right now is that their existence totally relies on online application or web, there is no physical existence of the firm where people can go and buy the tickets and book their seats in Airlift, this could be a major concern as the majority of the Pakistani’s are fall in lower-class thus they don’t have internet excess, even if they had it, they are not literate enough to use and make a booking on the online platform, plus there’s a lack of trust issues as well in Pakistan for the online platform because of so many scams and quality issues in the recent being.
  • Opportunity: Airlift has the opportunity to create a physical existence of their firm where individuals can visit and book their seats and Airlift should also create their bus stops where individuals who have purchased the ticket from their stores can wait on a given time for the bus, this would help them gather a large portion of the audience who are not literate enough but want to ride in an air-conditioned vehicle.
  • Threats: Substitution threats are on its peak for Airlift, there are many substitutes available in the market like public buses, bikes, bike-sharing, chin chi. It won’t be possible for Airlift to capture all these audiences because the majority of them have no idea what online bus ticket registration is.

Industrial Analysis of Airlift Pakistan 2020

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Muhammad Abbas

A Graduate of IQRA University, Pursuing Masters Program from IQRA University as well, Work as an Assistant Manager - Finance in Unilever Pakistan, Having Couple of Published Articles in Internationally Recognized Journals, Aim to Help the Students in Every Possible Manner to make them Achieve their Desire Goals!!! :) :) :) Keep Learning!!!

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