British Airways SWOT Analysis: Strategic Business Development

This document presents a SWOT analysis of British Airways, evaluating its internal strengths and weaknesses alongside external opportunities and threats. Strengths include a wide market presence, a strong brand image, and high service digitization, while weaknesses involve dependency on the UK market, low return on invested capital, and vulnerability to labor strikes. Opportunities encompass international market expansion, enhanced union relations, and strategic cooperation with other airlines. Threats include rising fuel and labor costs, intense competition from airlines like Air India and Emirates, and potential terrorist attacks. The analysis concludes with recommendations for policy drafting to improve employee relations, enhancing customer service through social media, and offering discounts and vouchers to boost demand and maintain a competitive edge. This SWOT framework provides a comprehensive overview of British Airways' strategic position and potential areas for improvement.

SWOT Analysis
Use this template to perform a SWOT analysis
Instructions:
 List the organization’s internal forces, including strengths and
weaknesses, in relation to mission achievement.
 List key opportunities and threats (political, economic, social,
technological, demographic, or legal) that may influence the organization’s
ability to achieve its mission.
Indicate possible connections between an opportunity or threat, and a
strength or weakness.
Internal
Forces
External Forces
Strengths:
 More than 400 destinations.
 Wide presence in the market.
 Good brand image.
 Received award of “Customer super
brands".
 largest international scheduled airline
 Premium airline
 Satisfied customers
 high service digitization
 Received recognition as a “frequent
flyer" from the business traveler
magazine.
 Skilled staff
Open sky agreement
Opportunities:
 International market expansion
 Enhance relations with the unions
 Strategic cooperation with the other
companies in the airline sector
 Synergy can give benefit via close
integration between the IAG's operating
airlines.
 Alliances and code sharing.
 Government permitted the third run
way at Heathrow.
Weaknesses:
 Dependency on the UK market.
 low return on the invested capital
 Labor strike
a.) strong labor union
b.) strike in 2009
 Management cost
 Increase in land and staffing charges
 Drop in the booking of premium class.
Threats:
 Rise in the overall cost of the fuel.
 Increase in the labor cost.
 High competition level.
 Competitors are:
a.) Air India
b.) Singapore Airlines
c.) Emirates
d.) Qatar Airlines
 Terrorist attacks

 Disruption in the service such as
employee strikes.
 Competition intensification.
Changing regulations of the government
RECOMMENDATIONS
 Drafting of the policies: It is highly
recommended that company should
emphasize on drafting the policies so
that it could be easy to rebuild the
relation among the employees and the
management. The changes in the
policies should be made in reference to
the reward policies as it will help to
reduce the threats related to employee
strikes.
 Customer Service: It is important for
the company to focus on considering
the different social media sites such as
Facebook so that it could be easy for
the customer to solve their queries.
Quick response is one of the medium
that will help to maintain competitive
advantage.
Discounts and vouchers: British Airways
should emphasize on offering vouchers and
discount to the customers so that it could be
easy to enhance the demand of the services in
the competitive market. It will also give
competitive advantage to the company and
help in boosting the share market.
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NOTE: You may adjust the formatting of this document to fit the needs of
your analysis. You can expand it to an additional page if required. Since we
are using bullet points in this document, you do not need to use complete
sentences nor do you need citations (Citations are required for the written
component of this week’s assignment).
Form used with permission: RFS2 , INC.