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Norwegian Air Shuttle (0FGH) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Norwegian Air Shuttle (United Kingdom)


Based on various researches at Oak Spring University , Norwegian Air Shuttle is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, technology disruption, etc



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Introduction to SWOT Analysis of Norwegian Air Shuttle


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Norwegian Air Shuttle can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Norwegian Air Shuttle, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Norwegian Air Shuttle operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Norwegian Air Shuttle can be done for the following purposes –
1. Strategic planning of Norwegian Air Shuttle
2. Improving business portfolio management of Norwegian Air Shuttle
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Airline sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Norwegian Air Shuttle




Strengths of Norwegian Air Shuttle | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Norwegian Air Shuttle are -

Effective Research and Development (R&D)

– Norwegian Air Shuttle has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Norwegian Air Shuttle staying ahead in the Airline industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Highly skilled collaborators

– Norwegian Air Shuttle has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Airline industry. Secondly the value chain collaborators of Norwegian Air Shuttle have helped the firm to develop new products and bring them quickly to the marketplace.

Digital Transformation in Airline industry

- digital transformation varies from industry to industry. For Norwegian Air Shuttle digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Norwegian Air Shuttle has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Ability to lead change in Airline

– Norwegian Air Shuttle is one of the leading players in the Airline industry in United Kingdom. Over the years it has not only transformed the business landscape in the Airline industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Norwegian Air Shuttle in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Sustainable margins compare to other players in Airline industry

– Norwegian Air Shuttle has clearly differentiated products in the market place. This has enabled Norwegian Air Shuttle to fetch slight price premium compare to the competitors in the Airline industry. The sustainable margins have also helped Norwegian Air Shuttle to invest into research and development (R&D) and innovation.

Low bargaining power of suppliers

– Suppliers of Norwegian Air Shuttle in the Transportation sector have low bargaining power. Norwegian Air Shuttle has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Norwegian Air Shuttle to manage not only supply disruptions but also source products at highly competitive prices.

Learning organization

- Norwegian Air Shuttle is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Norwegian Air Shuttle is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Norwegian Air Shuttle emphasize – knowledge, initiative, and innovation.

Successful track record of launching new products

– Norwegian Air Shuttle has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Norwegian Air Shuttle has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Diverse revenue streams

– Norwegian Air Shuttle is present in almost all the verticals within the Airline industry. This has provided Norwegian Air Shuttle a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Innovation driven organization

– Norwegian Air Shuttle is one of the most innovative firm in Airline sector.

Strong track record of project management in the Airline industry

– Norwegian Air Shuttle is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Training and development

– Norwegian Air Shuttle has one of the best training and development program in Transportation industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.






Weaknesses of Norwegian Air Shuttle | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Norwegian Air Shuttle are -

Slow decision making process

– As mentioned earlier in the report, Norwegian Air Shuttle has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Airline industry over the last five years. Norwegian Air Shuttle even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Norwegian Air Shuttle supply chain. Even after few cautionary changes, Norwegian Air Shuttle is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Norwegian Air Shuttle vulnerable to further global disruptions in South East Asia.

Employees’ less understanding of Norwegian Air Shuttle strategy

– From the outside it seems that the employees of Norwegian Air Shuttle don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Workers concerns about automation

– As automation is fast increasing in the Airline industry, Norwegian Air Shuttle needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Need for greater diversity

– Norwegian Air Shuttle has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

Slow to strategic competitive environment developments

– As Norwegian Air Shuttle is one of the leading players in the Airline industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Airline industry in last five years.

No frontier risks strategy

– From the 10K / annual statement of Norwegian Air Shuttle, it seems that company is thinking out the frontier risks that can impact Airline industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Skills based hiring in Airline industry

– The stress on hiring functional specialists at Norwegian Air Shuttle has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.

Compensation and incentives

– The revenue per employee of Norwegian Air Shuttle is just above the Airline industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Increasing silos among functional specialists

– The organizational structure of Norwegian Air Shuttle is dominated by functional specialists. It is not different from other players in the Airline industry, but Norwegian Air Shuttle needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Norwegian Air Shuttle to focus more on services in the Airline industry rather than just following the product oriented approach.

High operating costs

– Compare to the competitors, Norwegian Air Shuttle has high operating costs in the Airline industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Norwegian Air Shuttle lucrative customers.




Norwegian Air Shuttle Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities of Norwegian Air Shuttle are -

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Airline industry, but it has also influenced the consumer preferences. Norwegian Air Shuttle can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Norwegian Air Shuttle can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Creating value in data economy

– The success of analytics program of Norwegian Air Shuttle has opened avenues for new revenue streams for the organization in Airline industry. This can help Norwegian Air Shuttle to build a more holistic ecosystem for Norwegian Air Shuttle products in the Airline industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Using analytics as competitive advantage

– Norwegian Air Shuttle has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Airline sector. This continuous investment in analytics has enabled Norwegian Air Shuttle to build a competitive advantage using analytics. The analytics driven competitive advantage can help Norwegian Air Shuttle to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Norwegian Air Shuttle can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Manufacturing automation

– Norwegian Air Shuttle can use the latest technology developments to improve its manufacturing and designing process in Airline sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Norwegian Air Shuttle to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Norwegian Air Shuttle to hire the very best people irrespective of their geographical location.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Norwegian Air Shuttle to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Leveraging digital technologies

– Norwegian Air Shuttle can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Building a culture of innovation

– managers at Norwegian Air Shuttle can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Airline industry.

Learning at scale

– Online learning technologies has now opened space for Norwegian Air Shuttle to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Low interest rates

– Even though inflation is raising its head in most developed economies, Norwegian Air Shuttle can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Developing new processes and practices

– Norwegian Air Shuttle can develop new processes and procedures in Airline industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.




Threats Norwegian Air Shuttle External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats of Norwegian Air Shuttle are -

Technology acceleration in Forth Industrial Revolution

– Norwegian Air Shuttle has witnessed rapid integration of technology during Covid-19 in the Airline industry. As one of the leading players in the industry, Norwegian Air Shuttle needs to keep up with the evolution of technology in the Airline sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

High dependence on third party suppliers

– Norwegian Air Shuttle high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Norwegian Air Shuttle in Airline industry. The Airline industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Norwegian Air Shuttle.

Easy access to finance

– Easy access to finance in Airline industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Norwegian Air Shuttle can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Norwegian Air Shuttle can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Norwegian Air Shuttle prominent markets.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Norwegian Air Shuttle may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Airline sector.

Environmental challenges

– Norwegian Air Shuttle needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Norwegian Air Shuttle can take advantage of this fund but it will also bring new competitors in the Airline industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Airline industry are lowering. It can presents Norwegian Air Shuttle with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Airline sector.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Norwegian Air Shuttle business can come under increasing regulations regarding data privacy, data security, etc.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Norwegian Air Shuttle will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Consumer confidence and its impact on Norwegian Air Shuttle demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Airline industry and other sectors.




Weighted SWOT Analysis of Norwegian Air Shuttle Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Norwegian Air Shuttle needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of Norwegian Air Shuttle is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of Norwegian Air Shuttle is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Norwegian Air Shuttle to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Norwegian Air Shuttle needs to make to build a sustainable competitive advantage.



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