SWOT Analysis Of British Airways

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The organisation chosen for this report is British Airways. This report will first provide an overview of the organisation. Then, British Airways competitiveness and internal and external factors influencing its performance would be evaluated and determined using competitive strategy models, namely SWOT analysis, PESTLE analysis and Porters Five Forces. Thirdly, the report also discusses the efficiency of the strategy by highlighting its core competencies and risk management strategy and, finally, conclusion and recommendations are provided based on the reports’ findings.
1.2. COMPANY OVERVIEW
British Airways (BA) was formed in 1974. BA is headquartered in Harmondsworth, UK. In terms of fleet size and international airlines, it is UK’s largest airline and second in terms of the overall number of passenger it carries. Currently, BA operates under the International Airline Group, in which it one of the two parent company. BA’s primarily operational routes are Europe and the USA; nevertheless, BA operates in 400 destinations worldwide. As of December 2014, BA has 43,120 employees. In addition to being a
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Threat due to new entrants in the market: The threat of new entrants is low. Although there are minimal restrictions to entry because the UK airline industry is highly deregulated (Chernatony et al. 2010), there are several factors that are favourable for BA. The long-distance travel market from the UK is highly saturated, of which BA is a major player, while the short-distance market is also saturated by airlines such Easy Jet and Ryan air, which along with BA account for a large portion of the market (Steves 2010). Moreover, the biggest entry barrier in the airline industry is the cost factor (Azar and Brocks, 2010). The global economic recession weakened the overall air travel demand, which along with entry failures of Zoom and XL in 2008, could create doubts and negativity for new entrants (UK Airline Industry Analysis Researchomatic, 2012; Steves,
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