British Airways

BY
GROUP-3

British Airways overview

Flag carrier airline of the United Kingdom Founded in 1924 as Imperial Airways, and operated under

that name until 1935

1939, the airline was nationalized to form the British Overseas Airways Corporation (BOAC)

1972, BOAC and BEA were combined under the British

Airways Board It offers seven classes of seat bands to cater to its different customer needs.

Objective
To overcome with the global economic downturn and low demand in Air travel.

Key Issues
Downsizing of employees Weaker Exchange rate of dollar against pound Hike in ATF price Low demand in air travel

Key Problem
13% drop in their major income

BCG Matrix
HIGH

STAR

QUESTION

CURRENT

CASH COW
LOW

DOG

PROPOSED
HIGH LOW

Porters five forces

BUYERS BARGAINING POWER

SUPPLIERS BARGAINING POWER

CURRENT

RIVALRY

THREAT OF NEW ENTRANTS

THREAT OF SUBSTITUTES

PROPOSED

Porters differentiation model...

PROPOSED

CURRENT

Ansoff model

CURRENT

PROPOSED

Q2. Analyze the competitive environment in which BA operates, and advise the management on how to cope with what seems to be fierce competition in this market Competitive environment reflects that BAs competitor UK, Ryanairs Budget Airline model helped them to sustain and to be benefited in the recession period when people doesnt have enough money to spend. BA shall also increasingly make use of economies of scale technique too for attracting customers with low purchase capacity. BA should offer value added service to the customers to retain them

Q3.key capabilities of BA
More than 200 destinations in ninety different countries. Employing a mix of people from different background has led BA to improve its customer service. Capitalizing on technology has also enabled BA to introduce some new innovative ideas. Standardized aircraft fleet, reduced cost and complexity. Core competences Strong network presence both in the domestic and international market. Established brand name

Capitalization of strengths By building its network more strongly. They can introduce some offers. For e.g.. Free travel once in a month if a they use BA for a particular number of times. As the number of business class travelers are declining, preference in booking ticket to regular travelers of Business class should be given at an affordable prize.

Thank you