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An analysis of the British Airways external environment at the present time, concluding with a discussion of the main opportunities and threats facing the industry.

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Introduction

1. An analysis of the British Airway's external environment at the present time, concluding with a discussion of the main opportunities and threats facing the industry. 1.1SPENT Analysis 1.11 Socio-demographic influences In Comparison to other Area, people with higher GNP area usual will require transportation for their movement due to business and leisure (Ekamba,L.F., 2002).Therefore, setting up a new route or maintaining operations of a route, airline needs to focus the distribution in population when in order to make profit, such as London-New York as the busiest route around the world. BA, in 2003, scheduled flight serve 552 locations in 135 countries, obliviously the majority business are in America, Europe and Asia. (www.britishways.com) 1.12 Political influences In 1978, the USA deregulation has brought a significant advantage in competition among airlines. It affected the recent growth in services by new low-cost competitor such as Easy Jet, and the cross-border acquisition of airlines. DBA, BA's subsidiary, providing competition in Germany and Virgin Express competes internationally out of Belgium. (Ekamba,L.F., 2002) 1.13 Economical influences In term of currency, BA still uses the pound sterling rather than the single currency, Euro is used in the majority of its competitor. Furthermore, the USA economy recession due to terrorism attack, on Sep11th, 2001 caused BA traffic to the US was down to 60% and the revenue loss. ...read more.

Middle

BA continually changes into a very high standard of on-board service. These new enhancements to First are being introduced across the British Airways long haul fleet. Secondly, Club World & Club Europe was the first band developed by BA in 1995, which it would deliver the intercontinental business traveller to their destination relaxed, refreshed and ready to do business. Thirdly, World Travellers& Europe Travellers is also a brand name of economic class, it comprises a wild range of produce enhancement to serve BA diverse customer base, offering excellent value of money. Fourthly, Domestic, BA offers an unrivalled network and schedule to key destinations across the UK, Channel Islands and the Republic of Ireland and claimed that they fly more people, more often, to more UK destinations than any other airline. Finally, BA's Executive Club is one of the most successful frequent flyer programmes in the world .For people who travel frequently; the Executive Club seeks to provide priority service with personalised rewards e.g. travel benefits such as lounge access and earning BA Miles for free flights in return for continued loyalty. (www.britishways.com) 2.12 Cost Leadership In order to return the airline to profitably, BA announced the FSAS strategy in 2002, which took further step to remove unprofitable capacity, reduce costs and strip complexity out of the business by simplifying the fleet, fares and business system. ...read more.

Conclusion

W -Highly cost of manpower O -Exemption from competition legislation for six years, subject to conditions necessary to maintain competition on four UK-Spain routes. -developing the new technology which complement to the online booking system T -The effect of SARS and the war against terrorism which is an eventual terrorism attack. -Oil price is tag on Us Dollars which is strong will increase the operational cost of BA In 2002, BA announced the programme "FSAS" in order to cut costs and simplify its business. One of reasons for cutting costs is that the expenditure on manpower is uneconomically as a current weakness. Therefore, BA aimed at reducing in manpower of 13,000 from 2001 to 2004. Until 2003, it has exceeded in number they expected. In the form of reduction in manpower, BA has changed the way of operating into invest deeply in Information Technology and web based business, such as online booking. However, an insensible phenomenon might be exposed in the future through this strategy. In certain aspects, Information Technology still can not replace the labour. Reducing too much cost of manpower, it perhaps wills bring a disadvantage of BA. List of Reference Book David et al.(2002).,Business Strategy Project Ekamba,L.F., (2002)Strategy analysis of British Airways with Specific aspect to globalisation Web page www.britishways.com www.ryanair.com 1 ...read more.

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