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BERLIN BRANDENBURG INTERNATIONAL AIRPORT

by Adriaan Gravendeel

Introduction

Berlin Brandenburg International Airport is new airport nearby Schönefeld and Tegel and Tempelhof airports. It replaces them and with that becomes the sole commercial airport near Berlin and the State of Brandenburg. This is an area containing 6 million inhabitants. The prognosis predicts approximately 34 million annual passengers. A number that high puts Berlin Brandenburg Airport in the third place of busiests airports in Germany, even one of busiest in Europe. The Architects of the airport are the two firms; gmp architects and JSK Architects. These are two very well-known studios, and have received several different awards throughout the years.

The project was severely delayed. The construction started back in 2006, and was planned to last about 5 years. Several factors were the cause of major delays, amongst them poor planning, execution, management, and corruption. It took until 2020 for Berlin Brandenburg Airport to open for commercial traffic.

The construction cost was estimated to be around 3 billion euros. After many years the total cost came out to be more than 7 billion euros in total.

A project like this would benefit from a SWOT analysis. Below I will try to identify the four elements, Strengths Weaknesses Opportunities and Threads. This identification of these is easiest done by listing the different arguments.

Course

English

Professor

J Villanova Noguera

Year

2020

SWOT Analysis

Strengths

  • The location of the airport is important and can count as strength by determining the accessibility of the target market.
  • Although the main activity is flights to and from, there are many other activities which allow the organization to expand the customer base and diversify to spread the risk over more than one main activity.
  • An airport is a big organization, and if financially healthy it is a capable of making further investments.
  • Being a big organization also offers a strong negotiation position towards suppliers, improving overall business efficiency.
  • The modern infrastructure and high-tech operated airport gives the airport an highly efficient operational advantage.
  • Well-trained and dedicated personnel is an important strength in a service oriented service.
  • The modern infrastructure combined with the high quality of the personnel translates in a strong brand presence.
Brandenburg Airport
Willy Brandt Airport

Weaknesses

  • An organization this size produces a huge amount of waste. The way it is handled is subject to criticism.
  • Due to the size and diversity of an Airport management plays a critical role in efficiency, and can cause a major deficit in both inventory control and cashflow
  • The costs of an airport require activity all day, all year. The marketing and promotion is essential in attracting the customers and needs a substantial budget to do so. Failure can lead to a negative balance.
  • To be future proof a R&D department is important and needs the right people with adequate knowledge and a fitting budget. When a wrong course I chosen it will be very difficult to get back on the right track.
  • Customer/market analysis is quintessential for future strategy and positioning. If not done correctly the input for the above mentioned strategy will result in wrong choices.
  • Although the airline companies determine the prices for the flight, they are strongly related to the operational costs for flying to and from this airport. Too high a level will cause a drop inactivity with all its consequences.
  • Word of mouth has always played an important role in business development. Customer service done wrong can impact growth negatively.
  • The board can be hesitative in deciding on the different matters, which can cause an unnecessary delay.
  • The board needs to focus on the main objectives, failure to do so might render the organization without direction.
  • The amount of personnel needed for day-to-day operations demands an active recruitment strategy and employee satisfaction important. High employee turnover can increase recruitment costs and affect productivity negatively.
Willy Brandt Airport

Opportunities

  • Increase in population offers a bigger market and chance to grow.
  • If market research is done right the organization can profit from changing needs and trends.
  • Investment in and implementation of new technologies can increase productivity and reduce costs by improving efficiency.
  • Increasing wealth in the surrounding population opens for a bigger percentagewise investment in the more expensive products.
  • The reduction in the cost of capital translates to easier access to funds and lower costs of financing.
  • The modern infrastructure and technology offer a healthy opportunity for a strong online strategy and e-commerce.
  • The worldwide development present expansion possibilities into new market segments.
  • International agreements resulting in fewer rules and growth of international trade opens the need for a more international presence.
  • The government and local policies provide subsidies to travel a more positive environmental strategy.
Willy Brandt Airport

Threats

  • The environmental impact of air travel tends to be more and more be translated in an increase in regulations and legal restrictions. These result in higher costs of day-to-day operations, and puts a strain on the budget to ensure the future of the organization.
  • The increasing use of high-tech solutions presents a demand for skilled labour. A challenge, as this development is omnipresent.
  • Negative economic conditions have a direct impact on business performance as they directly translate in customers' spending power and need.
  • The rate of inflation or increase in interest influence the cost of production and profitability.
  • The environmental demands are posing as threat for the products/services that are not environment friendly. It results in negative publicity and criticism potentially destroying the brand image.
  • The diminishing borders demands for a more and more international presence. Knowledge of the different cultures is a must have to succeed. Lack thereof might do irreparable damage.
Willy Brandt Airport

Discussion

These are a random summation of the arguments one can think in a SWOT analysis. The point being made have to be individually weighted and divided into short- or longterm implications. On the basis of a subdivision like that necessary measures can be worked out, discussed and translated in immediate action and implicated in more long-term strategy.

An analysis like this can help to not only identify the main objectives, point to important opportunities and give direction to organization, but also create awareness for potential harmful weaknesses and threats. Many arguments do however have presence in more than one category, making it complex to act accordingly. The everchanging factors playing into the business ask for a dynamic attitude of any organization, and a SWOT analysis is not a onetime tool, it needs to be repeated to help organizations to adapt and increase survivability. At the same time the organization needs to realize that it is a tool with limitations.

The consequences of an analysis like this are up to the board of directors of the organization. As mentioned, it is a tool with limitations, but when used as intended it can provide a very valuable insight in the different factors that can make or break the future of an organization.

Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport
Brandenburg International Airport