British airways swot analysis

Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for British Airways to capture new customers and increase its market share.

British airways strategic analysis

Service disruptions due to employee issues: As British Airways used to be a state owned carrier in the past; it continues to be entrenched in unions. Competitors are usually considered threats. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. British Airways flies to over destinations in more than 70 different countries worldwide. Introduction The growing competency in the airline industry is also subjected in the different economic uncertainties. This is one of the major limitations of SWOT analysis. Limitation of Weighted SWOT analysis of British Airways This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically. With the appropriate collaboration of the marketing strategies, the BA can create more room of opportunities and strengths that can deliver the entire organization into a great success. Settlement payments made to employees regarding lawsuits 1. Mandate on airlines purchasing carbon pollution permits for operating in EU region. A significant legal factor affecting BA is the power of trade Unions. Some analysts hold the view that BA is over reliant on the UK market. Not highly successful at integrating firms with different work culture. Threats One major contribution of the BA threats is the increased competition among the airline industry.

Economies of scale due to its large size 2. But in their strategy in a low cost-ticket can be risky in a long run of the business.

British airways swot analysis essays

Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. Low fuel prices have increased profitability for the airlines in the short term 3. No regular supply of innovative products — Over the years the company has developed numerous products but those are often response to the development by other players. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. Opportunities for British Airways — External Strategic Factors Opening up of new markets because of government agreement — the adoption of new technology standard and government free trade agreement has provided British Airways an opportunity to enter a new emerging market. With more cash in bank the company can invest in new technologies as well as in new products segments. Weaknesses While BA has a number of strengths, it is not without some limitations. The aim of the organization is to increase the number of customers through delivering the quality of service and satisfaction. Increasing perception of British airways as a Low-Cost Carrier 1. Download this essay in full now!

It also aims to examine the opportunities and the threats facing the airline. Download this essay in full now!

British airways swot analysis

Automation of activities brought consistency of quality to British Airways products and has enabled the company to scale up and scale down based on the demand conditions in the market. Introduction The growing competency in the airline industry is also subjected in the different economic uncertainties. With the appropriate collaboration of the marketing strategies, the BA can create more room of opportunities and strengths that can deliver the entire organization into a great success. If the international economy slows down, business trades less Opportunities Emerging economies with their improved infrastructure and tourism demand offer airlines an excellent opportunity for expansion. But the organization should provide additional strategy to avoid the possible losses. BA announced in February about launching new summer holiday routes e. This investment has opened new sales channel for British Airways. Chan, D. Weaknesses 1. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Even though British Airways is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. Service distuptions due to employee strikes 4.

Further intensification of competition 2. British Airways revenues by geographical segment in GBP millions [4] 2.

british airways competition

British Airways is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.

Taking into account the highly cyclical nature of demand in the airline industry, it can be argued that low profit margin leaves British Airways exposed to downsizing in the industry.

pestel analysis of british airways

Culpan, R.

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British Airways