Management Economics Analysis of British Airways

MANAGEMENT
ECONOMICS- 2

Table of Contents
INTRODUCTION...........................................................................................................................1
Describe the company.................................................................................................................1
Analyse the market......................................................................................................................2
Different market structure in the company history.....................................................................5
Suggestions for the company operate in a different market structure and the government
interventions. ..............................................................................................................................6
CONCLUSION ..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Economics is the study of knowing all the various factors which are concerned with the
resolving of the the problems that can arise in the business and then make some of the decisions
with keeping in mind all the necessary actions of the company and the micro and macro factors
in the business environment. Demand and supply do have the major play role in the this
conception as it assists in making the preferred choice between the cost and the demand for the
product in the market. Also economics study also helps in understanding the market situation and
make some necessary steps that can be beneficial in future. In this respective report the chosen
organisation is British Airways is a British airline. The work comprises information about the
company's offerings as well as information about the company's history. It comprises the
industry and market segmentation with which the company is involved, as well as the company's
profile since its inception(Zhang, Hassan and Iqbal, 2020).
Describe the company
British Airways was founded in 1919 and was regarded as one of the best and most
important airline companies in the United Kingdom at the time. On an annual basis, the firm
serves almost 39 million people and is considered one of the largest and most modern fleets in
the world, travelling to over 200 locations in 70 countries. The airline and the flag carriers
British Airways was founded in the United Kingdom and is based in London. British Airways,
United Airlines, Virgin Atlantic Airlines, and Delta Airlines are some of the company's primary
competitors.
The corporation British Airways is primarily a full-service airline that operates
internationally. It may also provide a variety of round and extensive fares for global flights, as
well as a large network. British Airways can give services to customers by flying from specific
airports and locations. The business is a private limited company with limited liabilities and is
mostly owned by its shareholders(Vertakova, Kazantseva and Plotnikov, 2020).
The Brand was chosen because it is well-known throughout the world for providing high-
quality service, making it simple to understand demand and supply in the current market,
allowing the company to take corrective action to meet the changing needs and wants of their
potential customers and thus remain competitive in the long run(Alam And et. al., 2020).
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Analyse the market
The market is defined as the regular meeting place where buyers and sellers congregate to
sell and buy services by the company in order to accomplish the common goal of increasing
profits in a vast activity field. There are many market structures that businesses employ in order
to meet the requirements and desires of potential clients and to establish a positive brand image
in the marketplace. The oligopolistic market is the market segmentation in which the corporation
British airline operates. The oligopolistic market is defined as one in which the trading
enterprises are interconnected, and where some of the firms have the authority to decide on
activities relating to products and services, as well as to dominate the market(Augustynczik And
et. al., 2020).
The aviation sector is referred to as an oligopoly market because of the imperfect
competition that exists, with a limited number of companies that are present and can also
dominate other businesses in the industry. The oligopolistic market is also defined as a market
with a small number of sellers and the ability to differentiate without going too far. In this market
structure, the sellers have a huge and high number of market ads and are unable to ignore the
actions of their competitors(Subedi and et. al., 2020).
They are identifying the single authorities in charge of specific commodities in order to
create the finest brand image in the market while also benefiting the social group. They have a
strong brand image in the market, allowing them to achieve greater profit and growth with ease.
Various type of market structure
It is characterised as a market segmentation based on the nature of the market, the
number of sellers, competition, and the customer behaviour that affects the majority of
purchasers. This also aids in satisfying the demand of potential customers because they are
serving a certain segment, therefore they give it their all by employing the appropriate strategy to
remain competitive. The following are examples of different market structures:
 Perfect competition market: It is a market structure in which a large number of
passengers and aviation departments travel at the same time and there is no single seller
with a significant influence in the agency, so all of the other agencies act as price takers,
offering homogeneous prices for the tickets and services provided to them. Their primary
goal is to increase profitability, and agencies are free to enter and quit at any time.
Because there are no consumer preferences in the market, they are operating on their own
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