Business Strategy Report: British Airways Case Study and Analysis

This report presents a comprehensive analysis of British Airways' business strategy, examining its internal and external environments. It begins with an introduction to business strategy and its application to British Airways, a prominent airline in the UK. The report then delves into an internal and external environment analysis using frameworks such as PESTLE and stakeholder matrices. It assesses British Airways' strengths and weaknesses, utilizing the VRIO framework and value chain analysis. Furthermore, it applies Porter's Five Forces model to evaluate the competitive forces within the airline industry. The report concludes with strategic planning recommendations, incorporating various theories and models to devise a strategic plan for the organization. The analysis covers various aspects of the airline's operations and provides insights into its strategic direction, objectives, and tactics, along with suggestions based on both external and internal analyses and various strategic priorities available to the organization.

BUSINESS STARTEGY
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Internal and external environment analysis by using appropriate frameworks......................2
Information interpretation gathers from macro environment analysis and it’s used for strategic
decisions.................................................................................................................................9
Assessing strengths & weaknesses of British airways in context of management directions and
judgements..............................................................................................................................9
VRIO framework and value chain analysis to identify internal abilities and environment of
British Airway........................................................................................................................9
TASK 2.........................................................................................................................................12
Application of porter five force model to evaluates competitive force of given market.....12
TASK 3..........................................................................................................................................16
Range of theories, concepts and model to interpret and device strategic planning for
organisation..........................................................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................21
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INTRODUCTION
Business strategy can be defined as long term plan of act that can be designed and
developed by management to achieve a specific aim and objective of ventures. It develops a
direction and clear vision for overall companies. It can prevent firms from losing sight of their
ventures goals. The current assignment will be based on British Airways, which falls under list
of well known airlines in the United Kingdom. This study will explain influence and impact of
macro environment on chosen brand and their venture tactics. It will define internal environment
and abilities of company by using appropriate models and concepts. Furthermore, this report will
assess strength and weakness of firm for strategic administration directions and decisions.
It will define application of Porter’s five forces concept in context of evaluating
competitive atmosphere and forces. This assignment will clarify right tactics in regard to British
Airways and will also justify interpretation of data collect from competitive analysis. Moreover,
this study will describe strategic management plan for selected airline with correct strategies,
objectives and tactics. It will provide further suggestions base on overall analysis either external
or internal as well as define varied forms of strategic priorities that are accessible for
organization.
TASK 1
Internal and external environment analysis by using appropriate frameworks
Visions-
British airways is one of the best flag carriers airlines in the world, it fly across the
universe for more than 90 years successfully (Efthymiou and et.al., 2019). It consider as full
service international airline who offers low fares services to passengers with wide global path
flying to and from central established airports. Firm act according to its vision and mission
statement, they want to become number one responsible brand in aviation industry.
Missions-
British Airways want to assure its passengers that he or she fly with high confident that
individual can receive better services and safe journey without facing any issues during their
journey.
Objectives-
 The main objective of British Airways as no one airline is to provide satisfactory services
to national as well as international passengers (Law and Breznik, 2018).
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 Second objective of chosen airline is to boost their brand image and grow venture
presence in key global regions or cities.
 Third one is to meet needs and preference of customers through new approaches.
 Fourth objective of company is to become a global leader by sustaining on its leadership
position in the whole world.
In order to achieve above set objectives, vision and mission, British airways can develop
effective strategies and use varied strategic planning approaches that can help to overcome
negative impact of external and internal factors. Firm can determine all elements via conduct
macro and micro environmental analysis and for that thing they can utilize varied types of
strategic frameworks, following are;
PESTLE analysis-
Macro environment is a situation that exists in economy as entire, more than in specific
industry or country. It includes different factors like inflation rate, spending, GDP etc, which can
influence current tactics and decision making, act of companies. Ranges of approaches are
accessible in the world of business that can be utilized for macro environment analysis purpose.
PESTEL is one of the best models among list of many in context of this action as it help to
chosen airline to determine and examine which factor bring benefits for its business or which one
is not. It mostly use for situational analysis process as it aid to determine key external elements
that influence overall practices of firm, either in negative or in positive manner (Shtal and et.al.,
2018).
Political factor-
Political stability & instability, changes in policies and regulations related to aviation
industry and operating restrictions from government side are included in list of political factors
that can have an effect on current plans and tactics of airlines like British Airways. Political
stability is one of the main elements that can put positive impact on success and progress of
chosen firm in term of developing business friendly atmosphere and creating rules on entire
aviation sector in a region (Łęt, 2020). This factor allows company to operate in and enter into
profitable market like US, where they can increase profits margin even better.
Economic factor-
Economic growth, education level, unemployment rate, changes in fuel prices and
exchange rate are examples of economic factors. Unemployment in one of the components that
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put positive effect on hiring and selection strategies of British Airways as well as give firm the
best chance to hire those people who have knowledge and skills require for cabin crew staffs and
in other departments (Dinçer, Hacıoğlu and Yüksel, 2017). Firm due to this factor can develop a
further plan through which they can recruit skilled applicants who can serve passengers services
according to their needs that increase customer’s satisfaction.
Figure 1PESTEL Model
(Source: What Is the PESTEL Model for Business Analysis, 2019)
Social factor-
Life style changes, demographic modifications, preferences change and income level of
individual are all social factors. Changes in dietary and eating habits of passengers influence
flight services and food distribution strategy of British Airlines in negative manner. In recent
time, due to health issues people change the way him or her eaten and purchase food items
(Reynolds and et.al., 2019). This change can impact service providing procedure of air hostess
negative because without understand and determining eating habit and likes of passengers
workers could not be able to serve right food item to individual as it can influence their physical
and mental health.
Technology factor-
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Advancement of technologies influence and impact British Airways marketing strategies
and plans positively, it help to generate brand awareness and gain attention of international
passengers towards existing offers of firm (Ziegler, Troester and Sazali, 2017). Due to this
factor, marketing team experience positive things they feel stronger and powerful in term of
developing effective & attractive tactics that lead to increase sales level even better. With
advanced technology like social media channels and platforms, firm can develop an official
website where workers can update each information about business and offers on time that allow
people to known even better about company and compare their service level with other airlines.
Legal factor-
Equality Act 2010 is one of the legal factors that can impact British Airways
administration practices and decision making process positively. It allow firm to develop a plan
and policy through which they can protect workers especially cabin crew members from
discrimination in aviation sector or at workplace where more than 42,322 applicants perform and
accomplish his or her daily duties with sweet smile on face.
Environmental factor-
According to situation of environment, customers and government are more concern
about environmental safety and they put more pressure on well known airline like British
airways to reduce their carbon footprint. It can influence existing strategies of company in
positive manner in form of building excellent brand image within overall sector and boost
productivity level more than other airlines in the London.
Stakeholder matrix-
It is the best strategic management tool that can be utilized to examine stakeholders who
can impact operations, management decision and business strategies (Balane and et.al., 2020).
This model can help British Airways to identify actions and activities conduct by individual
stakeholder that can influence set aims.
Keep satisfied-
All the stakeholders are essential for British Airways and play important role in different
decision making act of firm. But Government is special one because they able to make current
and further changes within existing practices of airline by making change in current laws as well
as regulations developed especially for aviation industry (Spasojevic, Lohmann and Scott, 2019).
Because of that reason, organizations should keep this stakeholder satisfy and inform about every
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actions taken by its management in context of venture, customers and workers. It can be done by
planning small meeting and conducting continuous discussion on several legal terms &
conditions.
Manage closely-
Along with above stakeholder, suppliers are another one who can have an impact British
airways business services and organizational activities. Airbus and Boeing are the main
stakeholders of firm who can impact its service standard and customer base positively by
working with them without making changes in their work structure and procedures (Tronje and
Gan, 2018). When modification could be done by them it can direct influence pricing structure of
company and selling activities as well as strategy development relate to ticket prices in negative
manner.
Figure 2: Stakeholder Analysis
(Source: Stakeholder Analysis: Identification, Mapping & More, 2020)
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Monitor-
British airways face challenges because of intense competition level within aviation
industry that can be occur because of its rivals who are creating business growth strategies and
plans (Amankwah-Amoah, 2020). Easy Jet, Virgin Group and Jet 2 are the main competitors of
chosen airline and stakeholders as well because they impact business success and progress in
form of external factor. These stakeholders can increase stress level for firm and give negative
experience to its management. Airline to become global leader and boost their productivity
should monitor each activity of rivals which make them able to take right action accordingly.
Keep informed-
Like above stakeholders, British airways business plans and operational efficiencies can
be affected due to their workers or cabin crew members who can switch to other employment
opportunities as they have this power. They could not impact negatively because accessibility of
applicants gives organization chance to hire new staff. Employees as stakeholder are less
interested to work with any firm for longer period of time, so in that case chosen airline should
keep them inform about strategic development and organizational changes that is quite enough.
SWOT analysis-
It is strategic planning and management approach that has been utilized especially to aid
companies such as British Airways determine internal abilities, strengths, weaknesses, threats
and opportunities (Vlados, 2019).
Strengths-
The biggest strength of British Airways is its skilled workforce who has given great
experience of passengers during his or her travel journey either long or short. Because of this
force company can sustain within aviation industry for longer period of time and give tough
competition to its rivals by working even hard.
Another strength of chosen airline is its own engineering branch through which they can
maintain aircrafts fleet appropriately, which in return save money and time as well. It can save
time consuming activity of firm like invite team of engineers to maintain and update current
aircraft systems successfully.
Weaknesses-
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The biggest weak point of British Airways is it’s over dependency upon United Kingdom
market. It has been analysed that more than 50% of organization revenue come from above
market which can be considered as good but quite risky as well. Economic chances within UK
can put negative impact on offering and services of company as it can lead to decrease
profitability and productivity level.
Lack of management is another weakness of British Airways that can influence its
performance level in negative manner. When manager could not handle skilled workforce and
create inclusive culture for them at workplace it can impact work ability of people.
Opportunities-
Brand expansion is one of the best chances that firm can grab and take its benefits in term
of increasing their customer’s base, profits margin and sales even better or more than rivals who
has attempt to become a global leader within aviation industry by serving the best services and
offers cheapest products.
The advancement of technologies is other opportunity that also benefits British airways
and boost their performance, it can help to reach at international platforms and allow becoming
the top airline. Both chances are really great for brand as it help management to serve more than
current routes.
Threats-
Intense competition within aviation industry can posses threat for British Airways
because it can put negative impact on current management activities, decision making procedure
and marketing tactics. Because of high rivalry, firm could experience challenging situation that
drive manager to think innovatively and creatively, which is really very important according to
business environment where innovation is require to gain competitive advantages.
Industry where British airways have operated its business is highly regulated; chances
within rules and policies for aviation sector can impact negatively upon decision making
procedure of firm.
Information interpretation gathers from macro environment analysis and it’s used for strategic
decisions
With above strategic approaches and models, it has been analysed that firm is able to take
better decision which can help them to overcome difficult situation and reduce the negative
impact of varied external or internal factors. From gathered data, company can decide which
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option is best and suitable for its venture success. They can take decision about what direction is
appropriate for company growth and better productivity. Macro environment give a lot of data
that firm can use in varied ways.
Assessing strengths & weaknesses of British airways in context of management directions and
judgements
With skilled workforce company can decision to expand its business in new market. It
can be said that strength allows firms to think about gaining further opportunities along with
current one. Weakness of British airways can drive manager towards think positively and take
judgement that can help to overcome.
VRIO framework and value chain analysis to identify internal abilities and environment of
British Airway
Strategic capability can include competences and assets that a company can use to
compete in its sector or industry. Strategic reason, values, aims, vision and tools for
environmental analysis are elements of above term. Following models are use to analyse internal
atmosphere and capabilities of British Airways.
Value chain analysis-
Primary activities-
Inbound logistics-
This activity of chosen airline is quite complex as it includes several things that firm
effectively manage like delivery of fleet of aircrafts, range of other on board items and catering
goods to passengers. Firm is able to build positive relation with its suppliers, which make them
able to deliver quality services on time.
Operations-
It can include cooking food items for passengers and serving them in effective as well as
systematic manner. As United Kingdom biggest global schedule airline, firm serve excellent
food services to its passenger according to their taste and preferences. They prepare meal by
using organic products.
Outbound logistics-
Baggage handling can be recognized as outbound activity of British airways that can help
customer to carry their heavy luggage at airport easily without facing problems. This ability of
firm makes it one of the most popular and well known airlines among which people can trust.
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Marketing and sales-
British Airways is able to invest in marketing activities as they try to develop effective
marketing content that directly influence people and mind. Firm can attempt to directly
communicate target market which is quite beneficial for its business image in market as it
promote and generate brand awareness.
Services-
The best thing about British airways is it complaint handling ability that can be recognize
as strategic capability of company which turn into increasing passenger satisfaction degree and
rating scale of brand even better. Organization gives importance to its post sale services that can
help to achieve competitive edge.
Secondary activities-
Infrastructure of company-
Structure of British Airways is quite simple and sorted, because it has finance, HRM,
marketing and legal section who can contribute in achieving set goals and objectives of
company. It can also help to reach at international level where potential business investors are
seeking to work with well known brand.
Human resource department-
Organization with effective human resource management can hire skilled applicants and
train new as well as existing one who is known as key elements of business success and progress.
They can build a team who can beat competitors by providing training which enhance
performance level and morale of cabin crew staff.
Technology development-
British airways can use the best and latest technologies which could make it able to
compete within industry for longer period of time and strengthen them to become a global leader.
Firm has use advanced technology to give superb experience to each passenger.
Procurement-
By building strong relation with suppliers and other stakeholders, British Airways can
manage its procurement activities in positive manner. As it can permit company to gain
competitive edge and boost brand position.
McKinsey 7s model-
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This concept has been used from longer period in regard to varied firms for determining
organizational effectiveness and internal environment that can help to take further decision.
Here, this model has use for British Airways to assess its internal atmosphere and abilities. It
comprise of two different elements;
Hard elements-
Strategy-
From above internal analysis, it has been identified that British Airways is able to
develop plan and strategies to maintain its position and gain competitive edge over its rivals,
which is actually very essential.
Structure-
All the department within British airways work together that can be its strengths. It can
help to manage performance of firm and allow develop effective tactics which bring different
benefits.
Systems-
Management of chosen airline appropriately monitor daily activities of cabin crew and
other staff members as they conduct investigation on time, which allow them to known that
applicants are getting his or her job done or not.
Soft elements-
Shared values-
Organization by managing corporate culture at workplace can boost morale and
motivational level of all workers which is very nice thing. They share values and respect each
other.
Skills-
Human resource management increase performance standard and productivity of
candidates by developing and improving his or her skills even better. They train people and build
a strong workforce at workplace.
Style-
Leader by using effective leadership style can motivate and encourage people to work
even better which actually management want from all of them.
Staff-
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Employees by using their skills, abilities and competencies along with traits serve its best
that make sweet smile on face to passengers after receive services during travel journey with
British Airways.
TASK 2
Application of porter five force model to evaluates competitive force of given market
Porter five forces is one of the effective model that helps in understanding existing
competition level in particular industry and the way company have make use of several strategies
to retain its market share. The model was developed by Micheal E Porter that analysis five
competitive forces such as power of consumers, threat of substitute products, and power of
consumers, competition level, and threat of new entrance that shape particular industry (Liu and
et.al., 2020). British Airway has initially started its operation in 1974 that have its operations
across worldwide with huge market share and profit margin. Therefore, several factors that help
in understanding competitive force of British Airway can be explained through use of porter Five
force model:
Threat of New Entrance (Low): Companies in order to enter or expand its operation in airline
industry have to invest lots amount of capital so that qualitative services can be delivered to end
customers. At the same time there are many large firms like British Airline that have huge
market share and strong brand image so it is another huge barrier to enter into airline industry to
operate its business function. It is too difficult to find runways and free slots in major
international airports of United Kingdom like Heatthrow Airport. Therefore, it can be stated that
threat of new entrance in airline industry is low so British Airways can easily expand and grow
its business operation (Habib and Hasan, 2019).
Bargaining power of Buyers (High): In recent trends, customers have more power due to
availability of alternative options or number of competitive firm with different services or
facilities. Due to globalisation and digitalisation people have become more and more aware of
their rights, more options thus they have low switching cost or highly price sensitive. Thus, they
can easily select particular airline to meet their expectancy level so British Airways through
offering qualitative services at reasonable prices have tried to reduce power of consumers
(Soegoto and Rushamidiwinata, 2018). It have formulate strategies to build strong relationship
with customers so that they are always motivated and influence to be part of organisation for
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fulfilment of their respective requirements. So, it can be stated that despite consumers have more
power to bargain company have manage by adapting its strategies as per their requirements.
Bargaining power of suppliers (High): British airways in order to delivery qualitative services
to customers need to have resources like Fuel, labour and airplanes. Company needs to invest
huge amount of capital in order to buy material at the same time number of suppliers of airplanes
are less so organisation operating in airline industry have less power. Thus, British airway in
order to get quick, timely delivery of material at minimum price have formulated strategies to
build strong relationship with number of suppliers (Evans and et.al., 2017). Strong brand image,
regular, timely payment and better relationship with maximum suppliers have helped company in
somewhat reducing power of suppliers and gaining competitive advantages in external
environment.
Industry rivalry (High): It can be stated that competition level in airline industry is high in both
domestic and international market that have created threat on growth and sustainability of
enterprise in longer time frame. Different organisations are competiting with each others in terms
of services offered, price and conveniences so British airway have decided to maintain quality of
services so that needs of people can be satisfied beyond their expectancy. Company have
expanded its market share or gain competitive advantages by focusing more on satisfaction of
individuals needs so that they are influenced to select British airway to travel from one place to
another (Pourali and et.al., 2019). Thus, it can be illustrated that despite of high competition
level or rivalry in airline industry British Airway have manage to retained its competition
positioning by maintaining its quality of services and creating loyal customers for long term
growth and success of enterprise.
Threat of substitute products (High): It is last forces that contribute in shape of specific
industry that is availability of substitute products or services for fulfilment of customer’s
requirements. There are number of substitute that are offered to customers in terms of travel
from one place to another like train, ship, bus, car and other modes of transports. Most of the
customers are always looking for alternative or options where they are provided services at lower
price possible so availability of substitute products is also biggest threat for company. While
people that prefer saving of time and more conveniences are influence to select British Airway as
compared to other competitors (Chen and Wang, 2017). Company by targeting high income
group individuals or that prefer more conveniences is able to enjoy high profit margin and
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market share in airline industry of UK and worldwide. Therefore, it can be stated that threat of
substitute products is high but British Airway through targeting specific group of individuals and
using different promotional techniques is able to create strong brand image in minds and hearts
of maximum customers.
So, it can be stated that only threat of new entrance is low due to number of barriers
whereas all other factors like threat of substitute products, industry rivalry, bargaining power of
suppliers and consumers is high. Thereby, British airway through making use of different
strategies has add more and more customers within organisation and enjoy huge profitability and
market share.
Ansoff matrix of British Airway
Ansoff matrix is a strategic planning tool that is used by senior executive, manager or
marketers of organisation to take appropriate decision regarding particular strategy that need to
be select so that company can easily expand and diversify its business operation and attain its
objectives. So, on the basis of porter five forces Ansoff matrix is used to understand key
strategies that could be used by enterprise to attain its objectives in competitive market condition
(de Oliveira and et.al., 2017). Such as:
Market penetration: It is easiest, quickest and simple strategy that is used by company to earn
sufficient amount of profit margin as in this strategy firm tries to increase sales by making use of
existing products in existing market condition. Competitive price is one of the important factors
that have affect decision making of number of individuals so British Airway in order to enhance
number of loyal customers have make use of promotional techniques such as earn air miles, low
price and various other benefits. Company is highly aware about recent preferences and taste of
local or domestic market therefore it is able to quickly adapt as per their needs and enhance
overall sales volume and market share.
Market development: It is another strategic option that could be used by British Airway to
increase its overall profitability such as it by developing market or expanding its operation in
new country can achieve its goals. British airway by targeting different segment of people can
add new customers and increase overall sales volume like it can offered premium flight with
specific facilities or budget flights between routes (Ike, 2017). British Airway by mainly
focusing on market development strategy can able to generate maximum revenue and market
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share. Thus, in this was it by formulate strategies as per different segment of people can easily
grow and diversify its operation and attain competitive advantages.
Product development: It is strategic option in which firms plan to launch new products and
services for existing market or customers. For example: British Airway by procurement of new
aircraft that have more comfort, facilities and contribute in delivery of services within limited
time duration can enhance customers satisfaction level. With innovation in technology, British
airway have changes its aircraft so that more better facilities can be offered to end user so that
existing as well as new individuals are ready to select its services rather than other competitors
(Grabara and Siswanti, 2019). So, product development strategy will help company to retain its
competitive position through improvement in services offered to customers.
Diversification: It is last and most risky business strategic option in which firm plan to deliver
new products or services in new market. Company before planning to enter into new market
needs to conduct market research or survey in order to find existing preference of traveller or
trends, development in technology. Political regulation and economic condition of particular
country also impact on firm strategy and operation in international market so British Airway
manager needs to have proper knowledge in order to decide particular strategy. British Airway
can diversify its business by procuring new aircraft that will be flying in new routes so that needs
of new market segment people can be fulfilled and company can gain its objectives.
Therefore, these are strategic direction that could be used by British Airway to attain its
goals within minimum time frame and cost. Lot of all four strategies, product development was
one of suitable options that can helps organisation in attracting maximum number of customers
and building strong brand image (Bashir and Verma, 2017). So, in future company have to make
use of product development strategies to promote and sustain its operation for more years.
TASK 3
Range of theories, concepts and model to interpret and device strategic planning for organisation
Different model can be used in order to device strategic planning for organisation like porter
generic force and bowman clock so that it can gain competitive advantages in future
circumstances. Porter generic forces include four types of strategies that can be used by British
Airway to enjoy high profit margin and market share in airline industry which can be illustrated
as follows:
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Cost leadership: It is most common and simplest strategies in which company by reducing its
overall cost or offering products and services at price less than other competitors have gained
maximum market share. British airway can get differentiate position or attract large number of
customers by lowering price of flights or delivering more facilities or services at reasonable.
Company through using this strategy can influence middle income group people to select flight
of British airway in order to travel form one place to another (Shafiq and Tasmin, 2016). There
are several benefits of adaptation of cost leadership such as it helps in brand recognition, enhance
overall sales volume and customers base thus company can sustain its business for longer time
frame.
Differentiate: It is another strategy option which can also be used by British Airway to achieve
its objectives by differentiates its offering so that people that are more concerned about
qualitative services will prefer its rather than other competitors in market. Company can
differentiate itself from others by delivering extra services such as WIFi facilities to customer so
that even in flight they can use internet. Online booking of flights has contribute in
delivering of quick services to customers so now they need not have to wait in queue in order to
travel different destination. British by making use of brand logo, digital technology can offer
seamless experienced to customers thus expand its operation in international market.
Focus cost strategy: In this strategy, company make use of its existing capabilities, resources in
order to fulfil requirements of specific group of individuals. British airway can also make use of
focus strategy in terms of offering services at lower prices for people that are highly concerned
about price of Flight while deciding particular medium to travel. But this strategy is not much
fruitful as company can earn sales volume and profitability by satisfying needs of specific group.
Focus differentiates: It is last strategic device that can also be used by British Airway to grow
its revenue and market share in domestic and international market. It is narrow approach or
strategies as company planned to fulfil requirements of similar individuals that belong to specific
group. Such as British Airway can charge high price and offer premium services to people that
belong to rich society and are interested to have best services in order to enjoy their travel. They
are less concerned about price and wants to have more qualitative products or services, facilities
so company by making use of this strategy can increase its market share (Gupta, 2016).
Bowman’ strategy clock
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It is another strategic model which can be used to plan action or key strategies that could
be used by firm in future. Cliff Bowman and david Faulkner are two famous economist that have
developed Bowman strategy clock that helps company to understand different ways in which it
can effectively position itself. Cost and differentiate are two best strategies that helps firm
gaining differentiate positioning and develop strong brand image in minds and hearts of
maximum individuals. British Airway management by using this model can easily make changes
and improvements in its process so that better services can be provided to maximum number of
customers (Agrawal, 2016). Eight position of Bowman strategy clock can be used by
management of British Airway to select specific strategies or action in order to attain its specific
objectives. Such as:
Low price and low value added: It is not much effective strategies as company offer low
quality products or services at low prices so little value is delivered to end users. Management of
British Airway needs to ensure that companies does not offer low value to its customers as it will
resulted in dissatisfaction and loss of market share of organisation. So, it have to ensure or
continuously monitor that standard or value services are offered to tourist so that in future they
are inspired to select it for travelling.
Low price: This is an strategy which is followed by enterprise that manufacture products in large
scale thus their overall cost reduce and they are motivated to deliver better products at lower
price. So, British Airway by training employees or staff member regarding the way they can to
deliver services can reduce amount of expense or make optimum utilisation in order to deliver
better services to number of people (Orozco, 2017). Company by focusing on cost can meet
needs of millions of people and increase its market share to huge extend.
Hybrid: It is third strategic positioning in which company emphasis on both aspects i.e, product
differentiation at the same time low pricing strategies so that travel can get best possible services
at minimum price possible. Therefore, it is one of the effective and best strategies as extreme
qualitative services or facilities are offered at low prices as possible. British Airway through
implementing Hybrid strategies can easily create loyal customers and promote sustainability of
organisation in airline industry.
Differentiation: Innovation is key for success of organisation as in recent trends customers have
become more demanding or wants better facilities. They prefer to be with an firm that always
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find new and differentiate method to meet customers expectancy. So company by adapting itself
with new technology or method to delivery services can maximise its sales volume. Thereby
British Airway with differentiate method of services can develop and retained its brand image
and add new and new customers within organisation.
Focused differentiation: It is strategy that is mostly used by firm that deals in highly luxury
and exclusive products or services so that it can sold qualitative services at competitive price or
high rates. Company can charge high price from customers that wants best facilities or have
extra demand or want luxury services in order to enjoy their journey (Grabara and Siswanti,
2019). Thus, more profit margin helps in enhancing overall inflow of cash or revenue of
organisation thereby company by meeting expectancy of focused group can enjoy lot of profit
and strong brand image.
Risky Margin: In this strategy, management of company have set high price or cost of products
more than its value that lead to loss of number of customers. It is not good strategy for long term
as there are several alternative options in airlines that offer wide range of services at minimum
prices in order to retained customers. Therefore, management of British airway to promote
growth and expansion of business need to evaluate and analysis actual value or services offered
to customers. On the basis of that it needs to set specific price of products or services so that
customers are happy and motivated to select it rather than any other company operating in airline
industry.
Monopoly Pricing: It is strategy that yield maximum profit in case there is only firm that
operates in particular industry so customers have no other options to select it for fulfilment of
their respective requirements. Whereas, British Airway operates in Airline industry that have
huge organisation with strong brand image, market share and loyal customers so it cannot make
use of Monopoly or high pricing strategy to gain maximum benefits.
Loss of market share: It is note desirable strategic position for any company that is operating
in external environment because it leads to loss of market share and profitability. Company have
set high price, so customers are less interested to make purchase from specific firm in order to
fulfil their respective requirements (Evans and et.al., 2017). British Airway management needs to
spend more time, efforts in order to analysis actual price that it needs to charge from customers
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by delivering particular type of services. So, that company can be protected from loss of market
share in longer run and can effectively perform its daily function.
CONCLUSION
It can be concluded from above report that formulating business strategy is tough task as
management needs to consider each and every factor that impact on growth and profitability of
organisation in longer or shorter period. There are numerous external factors in macro
environment such as regulation, social preference, technological updatation and environment that
have both positive and negative impact on operation of enterprise. It can also be summarised that
British Airway is able to maintain its competitive advantages by adapting itself with trends and
changes so that customers feel more happy and satisfied. From the SWOT model it have been
understand that company strength and key capabilities lies in strong brand image and market
value that helps in making best utilisation of available opportunities. Company by overcoming its
weakness can easily protect itself from threat of external environment and can grow for more
number of years. It has also be learnt from using Mickey 7”s Key model that definite
organisational structure, retention of highly talented and skills employees has helped in
developing brand image of enterprise in competitive market. It have also be understood from
above study that Porter Five force, that is power of consumers, power of suppliers, threat of
substitute products, threat of new entrance and existing rivalry are high and low but company
through changing its strategies have earn more profitability. At last it can also be summarised
that there are several alternative strategies operation which could be used by firm to meet its
goals (Pande, 2016). The report has concluded operated functional innovation on various
paradigms of technical growth, larger functional industry scenarios and also for stronger working
determinants within longer run and also for larger goals operational goals. Report has analysed
for stronger working determining metrics where there are quest horizons analysed for larger
determining technical diversification and higher evocative demand work growth.
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