Introduction:Manchester Airport is the UK’s third largest airport and currently handles
20 million passengers a year, offering direct flights to over 180
destinations worldwide by over 90 airlines.
(www.manchesterairport.co.uk accessed on 12 March 2005)
Fig.1 SWOT Analysis
1. Suppliers, although appear to be outside the scope of the marketing department, impact closely on the airport. Electricity, water & land are a few direct examples of government utilities. Without them, the airport cannot function. Bills must be paid to ensure constant flow of supplies, as failure to do so will result in a drastic impact on the airport’s customers, namely the airlines & retailers.
2. Local competitors in the transportation industry affect the airport too. These comprise of other airports, bus services, cabs, trains, cruises, ships etc. A price war is inevitable. It will definitely cost less to travel by land but traveling time is extended greatly. Besides that, not all places are accessible by land. Excellent service, comfort, safety, security, cheaper air rates, less traveling time etc are some of the pulling factors that the airport must offer and improve on.
3. Local publics mainly consist of the airport’s neighbors. Obtaining the goodwill of the local public will make it much easier to live harmoniously and reduce short-term local difficulties. Noise, air and waste pollution are some of the major concerns of the airport.
4. Customers of the airport are the airlines and retailers. Providing and developing high quality facilities with excellent service will attract more airlines, who in turn will market themselves through the airport. When the customers of the airlines, namely passengers, purchase more goods or services during their dwell time, the airport charges the airlines less, therefore, resulting in cheaper airfares. Retailers are attracted to a well-organized and established airport, yearning for cheaper rentals and bigger shop space.
5. Shareholders are the ten local authorities of Great Manchester. The breakdown is as follows:The Council of the City of Manchester – 55% The Borough Council of Bolton – 5%
The Borough Council of Bury – 5%
The Oldham Borough Council – 5%
The Rochdale Borough Council – 5%
The Council of the City of Salford – 5%
The Metropolitan Borough Council of Stockport – 5% The Tameside Metropolitan Borough Council – 5% The Trafford Borough Council – 5%
The Wigan Borough Council – 5%(RF, CS,Appendix 3.1, P50)
Having the largest slice of the pie, the Council of the City of Manchester dominates the entire decision making body. Suggestions come from all, but effectiveness and efficiency of the whole grouping system plays a major role in decision-making altogether.
6. Financial publics are banks or shareholders who control the airport’s finances and can pressure the airport to behave in particular ways. Annual Company Sales, Financial and Profit & Loss report are required by the bank to determine the amount of loans the airport can take over a certain repayment period. If the airport suffers from a SARS outbreak or terrorist threat, business will be greatly affected. Revenue will decline drastically and the airport may fall into a financial crisis. Banks at this point may not be able to finance much due to economic downturn and having other commitments. Shareholders on the other hand, may sell off their shares to avoid further cost incurrence. Reserves are a must as it acts as a form of security when such circumstances arise.
1. Environmental factors concern the pollution and other health hazards. Constant exposure to loud noises will cause accumulative deafness in one’s ears. Burning of fuel emits a pungent...