Business Essentials:

BUSINESS ESSENTIALS
INTRODUCTION
Business organization conducts
various functions and activities
to achieve its set goals and
objectives. In the case of Airlines
industry, British Airways is one
of the most successful and
leading company based on Fleet
size, but second largest in case
of number of passengers
carried. In UK. Air travel can be
considered as most interested
and preferable transport by its
citizens. Around 80% people
utilizes the services of airlines in
UK. Also, there is a decline in
services of domestic flights in
UK.
KEY ISSUES
The market share of British
Airways is 4.5 %. On the
other hand, its closest
competitor Easy jet has 10.4
% share in Airlines Sector in
UK.
PORTER THEORY
It is a framework for assessment the level of fight in a prevailing
industry along with business strategy development. In context of
British Airways, management has applied its 5 forces which are as:
 Threats of new entrants: Many new companies are entering
into airlines sector, that will create threat for existing
companies.
 Threats of Substitutes: British Airways can face threats of
substitutes like Easy jet, Atlantis Airlines etc.
 Bargaining power of customers: British Airways is also
affected by power of its customers to bargain.
 Bargaining power of suppliers: Also, suppliers of British
Airways also has some impact on its performance.
 Industry rivalry: British Airways has many entities which are
in competition, like Easy jet, Virgin airlines etc.
MARKET STRUCTURE AND
SIZE
Airlines industry impacts overall
economy of UK. British Airways is
a one of the leading airlines. The
market structure of airlines sector
in UK can be considered as
oligopoly. All companies like Easy
jet, British Airways etc. also,
demand for services are always
dependent upon structure of
market. British Airways track
different contributors accessible in
market area.
There are many issues which are
faced by British Airways. These
can be characterized as:
 Employee satisfaction.
 Government of different
countries.
 Compliances with various
laws and regulations.
 Customers of different
categories.
It can be concluded that in UK, airlines
sector has its own contribution towards its
economy. One of the biggest organizations
are British Airways EasyJet, virgin Atlantic
airlines etc. The operations are also
affected by 5 variants of porter’s theory. The
share of British Airways is 4.5 which is less
than its competitor Easy Jet.
CONCLUSION
MARKET SHARE
GRAPH