This article provides an overview of British Airways, including its background, mission statement, and competitors. It also includes a SWOT analysis of the company, highlighting its strengths, weaknesses, opportunities, and threats.
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British Airways Table of Contents BRITISH AIRWAYS BACKGROUND.....................................................................................................2 SWOT ANAYSIS OF BRITISH AIRWAYS..............................................................................................2 2
British Airways BRITISH AIRWAYS BACKGROUND British Airways is the second biggest company in the United Kingdom. Headquarter of the company is near Heathrow Airport in London. The Mission statement of the company is “One destination seeks to ensure our customers to fly confident together and we take care of the world in which we live”. British Airways was established on 1stSeptember 1974 in United Kingdom. It was formed by the merger of the four airlines which were British Oversea Airlines Corporation, British European Airways, Cambrian Airways and Northeast Airlines. It has been observed that British Airways target the customers of high and middle class group (British Airways, 2019). The competitors of the company are Easy-Jet, Virgin Atlantic, Delta Airlines, United Airlines and American Airlines. The main aim of the company is to offer “Quality flights to the individuals”. The company provides the services in more than 133 countries and their core markets are Asia and UK. It has been seen that the competitive advantage is maintained by offering quality services at low price in the highly competitive market. The services quality which is offered by the company focuses on boosting the satisfaction level of the customers so that it could be easy to grab the large market share. The tagline of the company is “The motto to Fly”. In the present scenario, the company focuses on offering low price services to the customers so that it could be easy to attain growth in the highly competitive market. The subsidiaries of the company are Comair, BA City Flyer, Open Skies and IAG Cargo. The parent company is International Airlines Group and also the hubs of the company are situated in Heathrow Airport and Gatwick Airport (British Airways, 2019). The British Airways Heritage collection is present since the formation of the British Airways. It is created to preserve the data of the British Airways predecessor organizations such as BOAC, BEA, BSAA and also the pre war imperial Airways limited. The British Airways heritage center is located in the Waterside corporate which in which the volunteers who dedication level is high have built the collection (British Airways, 2019). SWOT ANAYSIS OF BRITISH AIRWAYS SWOT ANALYSIS is one of the strategic analytical tools that help to facilitate the overall analysis in relation to strength, weakness, opportunities and threats. 3
British Airways (SOURCE: ICON, 2019). STRENGTH It has been examined that BRITISH AIRWAYS flies in more than 400 destinations and one of the strength is related with the wide market presence on the global platform. The airline also has the strong brand image in the market. In 2016, the company was awarded as the consumer super brands. In 2015, the company was declared as the short haul and long haul airline by THE SUNDAY TIMES and NATIONAL GEOGRAPHIC. The company has a good image among the customers through which it is now easy for the company to attain the large market share. The the company is considered as biggest international scheduled airline and it is the world’s leading global premium airlines on the global platform. So, it can be stated that the company has established itself as the brand on which the customers can easily trust and also they have faith towards the activities offered by the company (Bhasin, 2017). Weakness The weakness that is analyzed in context to BRITISH AIRWAYS is over dependency on the UK market. It is examined that half of the revenue is generated in UK and 81% of the revenues are generated in UK and US. So, in the present scenario the company can be considered as highly vulnerable in relation to the market slowdown. The next weakness related with BRITISH AIRWAYS is employee unions (Mayer, Ryley and Gillingwater, 2015). The company has a large unionized workforce. On the basis of that the collective bargaining is considered on the regular basis and the break down in the process of bargaining can impact the activities of the 4
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British Airways company in a negative way. So, it can be said that the continuous focuses on the employment costs has enhanced the risk in the particular area. Although company has a global presence in the market with the help of their subsidiaries but there are under penetration in the globalized market such as in China and India. The reason behind it is related with the high potential market that enhances the disposable income and also affects the changing lifestyles of the individuals (British Airways, 2019). Opportunities In the emerging economies the airline industry has the opportunity to develop the new routes which will help to boost the market share of the company in the competitive market. Also, the company can enhance the demand of the services as the company has the opportunity to emphasize on travelers and consumer groups. The demand can be enhanced as HEATHROW TERMINAL is a major hub of the company and the BRITISH AIRWAYS has a presence in the market, so they have the opportunity to enhance their activities to the newer territories and regions. Alliance and code sharing can help to boost the market share of the company. This can help in building the customer relations and also the company can grab the large market(Catherwood, Finlay and McLaughlin, 2016). Threats One of the major threats is related with the increasing competition in the European market and it is affecting the market share of the company in the competitive market. The competitors are Air India, Singapore Airlines, Emirates, Air France and Etihad Airways. There are also some competitors who have the cost structures that are less as compared to the British Airline targeting budget for the travelling segment. Also the rise in the fuel cost can minimize the profits margins of the company with the rise in the labor costs. The threat is also due to the changing regulations of the government which is affecting the long term strategy of the company. So, it is important for the British Airways to minimize the threats so that growth can be attained in the highly competitive market (Karami, 2017). References 5
British Airways Bhasin,.H, 2017.SWOT ANALYSIS.[Online] Available at:https://www.marketing91.com/swot- analysis-of-british-airways/[Accessed 15 March 2019]. BritishAirways,2019.AboutBritishAirways.[Online]Availableat: https://www.britishairways.com/en-in/information/about-ba?source=BOT_about_ba[Accessed 15 March 2019]. BritishAirways,2019.Historyandheritage.[Online]Availableat: https://www.britishairways.com/en-in/information/about-ba/history-and-heritage[Accessed15 March 2019]. Catherwood, P.A., Finlay, D.D. and McLaughlin, J.A.D., 2016. Intelligent subcutaneous body area networks: anticipating implantable devices.IEEE Technology and Society Magazine,35(3), pp.73-80. ICON, 2019.Goal Setting, S.M.A.R.T Principles & SWOT Analysis.[Online] Available at: https://www.iconnutrition.com/blog/goal-setting-s-m-a-r-t-principles-swot-analysis/[Accessed 15 March 2019]. Karami, A., 2017. Corporate strategy: evidence from British Airways plc. InThe Changing Patterns of Human Resource Management(pp. 46-64). Routledge. Mayer, R., Ryley, T. and Gillingwater, D., 2015. Eco-positioning of airlines: Perception versus actual performance.Journal of Air Transport Management,44, pp.82-89. 6