British Airways Case Analysis
1.1 Porter’s Five Forces
Porter’s five forces is an important tool in analyzing the competitive nature of the airline industry in order to assess the position of British Airways in the market. At the same time, the analysis will enable British Airways to make strategic decisions in order to increase profitability. Strength | Force/Threat | High | Competitive Rivalry * British Airways caters for both long and short haul flights. Within the long haul there exists little differentiation between BA and its competitors in terms of pricing and service offering. * The short haul market is more fragmented with many small players * Direct competitive rivalry is fierce with Virgin Airlines. Virgin Airlines were aggressive in which the company goes to all lengths to oppose any move by the British Airways in mergers * Consolidation of competitors has also increased competition. …show more content…
The first strategy will use British Airways internal strengths and applying it with their external opportunities and threats. This will allow for the company to use its strengths to improve the company’s external factors. The second strategy will consider the weakness in the company with the external factors like opportunities and threats to eliminate underlying weaknesses in the company.
It was supposed to have been the moment when British Airways showed the world the future of travel. Instead, the opening of Heathrow’s spectacular new Terminal 5 revealed only the hubris and incompetence of BA’s and the British Airports Authority’s management. Planned for 20 years, at a cost of £4.3bn, the opening of BA’s new home in T5 was an astonishing.
Where to start? On the operational side, there were technical errors, mechanical failures, and little system testing. On the management side, there was arrogance, complacency, poor communication, and a refusal to listen to staff and technical experts. Staffs were poorly trained, morale was low, and goodwill had long evaporated.
Corrective Measures; 1. Logistics and planning shall be effectively put in place before making such an facility