Analyzing Competitive Environment and Value Chain of British Airways

Report
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction to British Airways..............................................................................................3
Background Information about British Airways....................................................................3
Discuss about products and services of British Airways........................................................4
Analyse competitive environment by applying Porter's five force analysis...........................4
Analyse inbound logistics, operations and outbound logistics...............................................7
Analyse two support activities in Porter's value chain...........................................................8
Identify key value adding activities with justification...........................................................8
How business could deploy information technology (IT) and use innovative ideas in
improving its business processes and enhance its competitive positioning...........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Information technology is defined as tool which helps in fostering innovation at business
(Abdullah and et. al., 2016). With help of innovation, enterprise can gain various benefits in
terms of developing smart application, enhancement of data storage, fast processing, distribution
of information and others. The information or innovation technology plays effective role in
management of data, customer interaction, communication, sales, R&D, logistics and others. The
organisation given for assignment is British Airways which was established in 31st
March, 1974 at United Kingdom. The key people of BA are Alex Cruz, Stephen William and
Lawrence Gunning. It is providing services at global level. The main aim of report is to discuss
about information of company, their background along with their products and services. It also
highlights about competitive environment, inbound and outbound logistics, operations. Porter's
value chain and their activities are discussed along with use of innovation for improving business
practices to enhance competitive positioning.
MAIN BODY
Introduction to British Airways
British Airways is regarded as flag carriers airline in United Kingdom. It was founded in
1974 headquarter at Waterside, Harmondsworth near London Heathrow Airport. This has two
different hubs at Gatwick and Heatthrow Airport. BA has 282 fleet size with has 183 destinations
in different places. The parent company of British Airways is International Airlines Group.
Chairman and CEO is Alex Cruz and CFO & Director is Stephen William and Lawrence
Gunning. Revenue and net income earned by respective organisation is £13,020 and £1,952
million respectively. This is regarded as second largest airline in UK which is based on
passengers as well as fleet size carried behind easyJet. It is listed on London Stock Exchange as
well as FTSE 100 index. This is first passenger airline which have generated more than $1
billion at single air route.
Background Information about British Airways
British Airways was created in 1974 after BA Board established through government in
order to manage two airline business named as British European Airways and British Overseas
Airways Corporations, two regional airlines such as Northeast Airlines from Newcastle and
Cambrian Airways from Cardiff (Busse, Meinlschmidt and Foerstl, 2017). Also in 1974, four
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different companies has merged with British Airways. In 2011, respective organisation has
merged with Iberia in order to create International Airlines Groups (IAG) which is known as
holding company registered at Madrid, Spain. IAG is known for world's third largest airline
groups in context of annual revenue as well as second largest at Europe. In 1987, it became
privatised which is planned by Conservation Government. There are more than 65,157
employees working in different locations. It has covered 160 destinations which includes 8
domestic as well as 26 at United States. This is member and founder of Oneworld named as
airline alliance.
Discuss about products and services of British Airways
British Airway is regarded as full service global airline which focus on offering low fares
with worldwide route network in order to fly to and from local airports. It is part of IAG which is
global leading premium airlines. The products and services of BA includes flights, dining,
loyalty scheme, business class, punctuality and others. It carry 145,000 customers on daily basis
and provide high quality choice as well as convenience. This flies in more than 200 destinations
in 80 countries across worldwide. As it carriers up to 145,000 consumer every day and 45
million customer per year and serving 25 million cups of tea, 1.25 million with bottle of
champagne and 9.9 million bottles of wine (BRITISH AIRWAYS FACTSHEET, 2020). The main
advantages of booking tickets with BA includes flexible prices to family, cabins as per need of
consumers, complimentary drinks as well as foods, free selection of seat, no extra charges while
booking tickets and so on. BA provide loyalty schemes to all members who are avios on every
flights in terms of car hire, hotel accommodation, seat selection and others. The respective
organisation provide best punctuality record of timely flights arrival and departures.
Analyse competitive environment by applying Porter's five force analysis
Competitive environment is defined as dynamic external system where functions and
operations of business took place (Castillo, 2016). If there is large number of seller for same
goods and services then there is more competitive at marketplace in which business has to
compete with each other. On other hand, if there is less number of seller for particular goods and
services then firm has an advantages to gain competitive edge that assist in gaining of high
profits margins as well as market share from market. In context of airline industry, there is less
competition as it is difficult to come at market with new brand because there are already existing
brand which provide products as well as services to people in appropriate manner. The respective
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