Air France KLM SWOT and PESTLE Analysis

Strength

1. Wide network of airlines serving a large number of nations: Air France currently operates in 89 countries and serves 178 destinations worldwide. As of March 2016, the fleet size of the company is 331.

2. Good branding and marketing through huge presence on social media: Air France has a huge presence on social media especially Twitter, YouTube and Facebook. Some of the ads by Air France have reached over 1 million views on YouTube. The company has over 2.5 lakhs followers on Twitter and about 65 lakhs followers on Facebook.

3. Most powerful hub in Europe: Air France operates a hub at Paris-Charles de Gaulle, which is the most powerful hub in Europe in terms of connections and offers over 18,000 opportunities of connection between medium-haul flights and long-haul, and vice-versa, in less than two hours.

4. Strong tie ups: Air France has various tie ups which helps in delivering better services to the customers. One such tie up is with SNCF through which passengers can book and check in for their respective flights at railways stations itself.

Weakness

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Opportunity

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Threat

1. Terrorist attacks in Europe: The recent terrorist attacks in Europe have hampered the local flows to France. All this has lead to a growing concern about having France as a destination.

2. Continuing pressure on unit revenues: There was a continued reduction in the unit cost which was around 1% in 2016 and the ex- fuel unit costs were down by 2.3% at a constant currency. Also, the ongoing restructuring on track will reach full freighter breakeven in 2017.

3. Voluntary departure plan: In order to balance the weak revenue trends that developed during the December 2014, a voluntary departure plan has been formed which will cut another 800 positions in Air France.

Political

1. Trade protectionist policies of Trump administration: Increased protectionism policies impacts global trade and more often than not these are influenced by political factors and issues. Unilever being a European company may find tough market conditions for operating in the U.S as new regulations are likely to be introduced impacting foreign companies. Trump administration has already withdrawn from Trans-Pacific Partnership trade agreement and is expected to bring many more administrative changes to trade deals and partnerships.

Economic

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Social

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Technological

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Legal

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Environmental

1. Actionable steps to address climate change within the value chain: Unilever aims to address sustainability in each of its operations and has integrated addressing climate change initiatives within its value chain. The company has committed to being carbon positive in its operations by 2030 with complete usage of electricity from renewable sources. Also Unilever aims to eliminate usage of coal from its energy mix by 2020. Amongst other initiatives Unilever is addressing consumer disposal and recycling, deforestation, water recycling and sustainable packaging of products. Unilever is one of the few organizations globally which has been named a leader of the Household & Personal Products Industry Group in the Dow Jones Sustainability Index (DJSI).