Strategic Analysis of British Airways

British Airways

Contents
Introduction......................................................................................................................................3
Issues faced by British Airways......................................................................................................3
Marketing strategies.........................................................................................................................3
SWOT analysis of British Airways.................................................................................................4
Metrics of British Airways..............................................................................................................5
Recommendations............................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
British Airways is one of the largest airline in UK that is based on fleet size. The airline was
established in 1974 by British government to control and manage two nationalized airline
companies named British European Airways and British overseas Airways Corporation. In
addition to scheduled services provided by British Airways, it is engaged in the operations of
international carriage of mail, freight and more ancillary services. British fly over more than 30
destinations and carry more than 33 million passengers (Airways, 2017). The report discusses the
strategic issues faced, marketing-mix, internal analysis, Marketing Metric in order to analyze the
current situation of British airways. The report also has used the tool “BCG matrix” to analyze
the marketing strategies. At last, the report has given a recommendation to the issues that will be
found through tools.
Issues faced by British Airways
British Airways has to face a filed suit from Branson Airways that had led to loss of brand image
and reputation. With difficulties faced by British Airways, overseas partners faced huge losses
such as Qantas, US Air, and TAT suffered a huge loss (Lange et al., 2015).
Global recession- Due to increasing recession at the global level, tourists are no more interested
to go for holiday. In the attempt to increase its customer base, it strived to provide good customer
experience to attain a same level of profit. British Airways focused on the groups of passengers
such as business people and holiday makers. Moreover, it has affected the fare of flights due to
competent market price and less fare decided by competitors with same facilities (Charter, 2017).
Fuel Price- Oil price has been increasing due to high demand. International civil aviation try to
cut down flight to reduce the use of fuel. Nevertheless, it is an environmental issue too. If price

touches at extreme high level, British Flight expects the fuel bill for the current year jumped by 1
billion that represents overall 35 percent of annual costs.
British Airways is facing a daunting challenge such as raising finance at the time of economic
crisis in debt market. Choosing right of workers is difficult to measure because the staff costs for
British Airways is high. Moreover, as compared to other companies, the quality of British
Airways do not match with the customers paying. This creates customer dissatisfaction that can
be improved by proper human capital management (Coller, Mills, and Mills, 2016).
To overcome the strategic issues, British Airways had taken a strategic initiative in 2012 that
intends to achieve the vision of becoming one of the leading global airline. The plan involves an
overall approach or 360 degree to overcome several issues such as issues related to environment,
British tradition that supports consumer friendly initiatives, and relationships with suppliers
(Airways, 2017).
Marketing strategies
With an aim to maintain position it always remained a leading Airways, it has been able to
maintain the high standards in relation to its services. Airline provides a 24*7 security services to
the customers and handle the situations when things become uncontrollable (Shanbhag, Dutt, and
Bagwe, 2016).
Product- The products and services offered by these airlines satisfies the needs and wants of the
customers. It has a fleet sized of 295 that provides a first-rate service to all the patrons. At first,
the flight ticket are offered at a very reasonable prices just to satisfy the wants of customers. The
Airways is connected to different busiest airports and provides an excellent scheduled fight to all
the destinations. It has also chosen other form of entertainment such as movie collection, access