British Airways Report

6804 WordsMar 10, 201128 Pages
Table of Contents EXECUTIVE SUMMARY 2 1. COMPANY OVERVIEW 2 1.1 RECENT PROBLEMS FACED BY BA 3 2. CURRENT STRATEGIC POSITION OF BRITSH AIRWAYS 3 2.1 BRITISH MERGER AND ALLIANCES 4 3. EXTERNAL ENVIRONMENTAL FACTORS 5 3.1 PESTEL ANALYSIS 5 3.2 FIVE FORCES ANALYSIS 11 3.3 LAYERS OF THE BUSINESS ENVIRONMENT 14 3.4 COMPETITORS ANALYSIS 15 3.5 STAKEHOLDER ANALYSIS 17 3.5.1 STAKEHOLDERS MAPPING: The Power/Interest Matrix 18 4. INTERNAL ANALYSIS 22 4.1 RESOURCES-BASED VIEW 22 4.2 VALUE CHAIN ANALYSIS 24 4.3 THE LIFE-CYCLE MODEL 28 5. CONCLUSION 30 6. RECOMMANDATION 31 REFERENCES 33 BIBLIOGRAPHY 33 Websites 33 EXECUTIVE SUMMARY This report identifies through an analysis, the current strategic…show more content…
• Merger and alliances to create new routes from Gatwick. 2.1 BRITISH MERGER AND ALLIANCES The new group will combine the two companies in the UK and Spain and will enhance their presence in the international long haul markets while retaining the individual brands and current positions of each airline. British Airways and Iberia hope their new company International Airlines Group, International Airlines Group, will position the pair for further consolidation in the global airline sector as it emerges from a prolonged industry downturn and hope to compete with multinational rivals Air-France-KLM and Lufthansa. From a personal analysis it seems that the merger is likely to be more strategic for both companies as Iberia is more dominant in South American destinations and British Airways flies to only three South American destinations. The key benefit of the merger to BA would be the access to South America. Similarly, Iberia will gain from BA’s more extensive North American operations, with the two carriers able to share information on fares, schedules and routes. They have identified Latin America as a growth market, one where BA is under-represented. Willie Walsh has drawn a list of 12 possible airlines BA could merge with once the America airlines and Iberia tie-ups are completed. The choice of merging is positive in a sense that it will increase the market share and BA has promised cheaper fares and even more jobs as part of a route-sharing deal with US
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