Diagnoses of Reasons for Ba’s Market Share Loss

Running head: EXECUTIVE MBA
EXECUTIVE MBA
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EXECUTIVE MBA1
Q1. Diagnose the reasons for BA’s market share loss and assess the likely development
if BA did not invest in developing the new Club World.
The case study involves the organization of British Airways. It can be stated in this
context that British Airways is considered as the flag carrier aviation organization from the
region of the United Kingdom. It is the 2nd largest airline service provider company in terms
of its number of passengers carried and fleet size, which is 281, and sits just behind EasyJet.
The business house is created in the year of 1974. Since then, the management successfully
has operated their flights from Heathrow Airport and Gatwick Airport, which are the 2 hubs
for this aviation company (Britishairways.com, 2020). It can be stated in this context that
aviation industry is one of the most competitive business sectors among other business
industries that prevails in the modern global business world. In most of the market places
where the organization of British Airways operate possess several aviation companies,
whether regional or international, and provides stiff competition to them. The intensity of this
competition varies from route to route along with the nature and number of the competitors
that are operating in those market places. Apart from this, rising of niche airline service
provider organizations are also posing threat to this organization of British Airways.
Companies like Emirates Airline, Etihad Airways from the Middle East as well as Singapore
Airlines, Cathay Pacific and Malaysia Airlines from Asia are adding their routes at a fast
pace, which is posing competition to British Airways, which is resulting in decrease in the
market share of them. This will led to losing the competitive advantage that once was enjoyed
by the owners and management of British Airways.
The likely development that the management of British Airways may think is starting
short distance small flights, which will have access for limited number of passengers. The
prices of the tickets will be less, and these flights will be categorised into two sections. One
section will comprise the flights which will carry the business and corporate people, and the

EXECUTIVE MBA2
prices of the tickets will be less than the other section and possess a minimum number of
faculties. This will benefit those passengers who need to travel from one place to the other for
business meetings and corporate deals. Another section will include the fleet which will be
exclusively for the tourists, where the rate of the tickets will be more and facilities will also
be more in number. This will help to attract the passengers who travel from one place from
the other for the sake of vacation and leisure. Connecting flights will be arranged according
to the number of bookings in both the occasions. Both these sections will help to attract new
people from the market place towards them, and in this way the lost market share will be
regained. Innovative and unique approaches will also need to be implemented in the overall
approach of the organization towards their passengers, which will also help to earn more
money, which can be invested back in both these projects.
Q2. Evaluate the general product strategy of new Club World proposal and its
implementation details given consumer behaviour of Business class customers.
To cope up with the rising competition that is faced by British Airways in the market
places where they operates, the owners and management of this aviation company are
planning to launch a fresh and innovative product strategy through Club World. Through this
new offer, the owners and the management of this airline service provider company thought
of regaining the lost market place. 5 priorities were identified for improving the existing
services of British Airways by the research team of this organization. It has been identified
and found that comfort, control, space, privacy and storage were required by the passengers
who use the fleet of this particular organization. The feedbacks were welcomed by the
management and new seats which were 25% wider than the existing were offered to the
passengers along with audio-visual system which was also demanded by the passengers.
Apart from all these, 10-inch TV screens, noise-cancelling headphones, larger privacy