1.1 British Airways- Company Overview
British Airways Plc is the largest scheduled airline at international level in the United Kingdom. British airways (BA) operate its services in scheduled airway transportation services, domestic and international carriage of mail and freight and miscellaneous ancillary services (Datamonitor, 2013). With more than 300 destination flights, BA works in collaboration with franchise partners and codeshare to carry around 34 million passengers in a year. The annual report suggests its yearly revenue as 8.99 billion pounds and also boosts about having largest employee count in the UK with approximately 42,655 people.
BA became private in the year 1987 and since then, it continued to rise against the fierce competition in the airways industry. BA is successfully identified as the airlines who adapted to green technology and for its valuable environmental friendly strategic decisions. BA was greatly affected by the economic collapse in 2008 which affected it marginally in terms of revenue generated. Strategic analysis of BA suggests that there is lot of scope for it to grow in Europe and in the world market. Annual reports of British airways stresses that the company would strive hard strategically to become the world’s most responsible airline. In order to strive for its strategic objective, careful strategic decision will be required to be implemented.
The present essay discusses strategic review of British airways by conducting both external and internal analysis. Porters five forces, Porters valuable chain, TOWS matrix, industry life cycle etc will be used to measure strategic analysis of BA in this essay.
SECTION 1- EXTERNAL ANALYSIS
1.1. Porter’s Five Forces
Porter’s five forces is one of the important strategic tool used in the analysis of competitive nature of British airline industry. Porter’s five forces will help in assessing the strategic position of British airways in the airline industry and also helps to design strategic decisions for the company to increase the profits.