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
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• 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
The merger is expected to take a total of 5 years with an end result of a fleet of nearly one thousand planes covering more than 150 cities in United States with connecting flights to more than 30 countries around the world. All evidence indicates that a merger between Southwest Airlines and JetBlue Airlines can be completed within 5 years and will be successful in helping the merged company become the industry leader in low-cost, high customer service airline carriers in North America. The minor obstacles such as redundant cities, a balloon payment owed by JetBlue, redundant Point of Sales Systems and baggage tracking systems, and a surplus of employees, is negligible and easily resolved during the 5-year merge period. A few decisions will still need to be made such as what to do about employee contracts being different between the two carriers and pension plans but the merger is being given a good to very good rating for its chances to succeed as
The $11 billion dollar deal still has to be approved by American Airlines’ bankruptcy court judge and U.S. antitrust regulators. If approved, US Airways and American Airlines will merge and will be headquartered in Fort Worth, Texas. US Airways CEO, Doug Parker, will run the new company that will have nine hubs, 1500
the period a journalist for the Financial Times noted "British Airways has become the first
British Airways came into existence since civil aviation began shortly after World War I. A lot has changed in the 90 years from the world's first schedule air service on 25 August 1919 to the present day civil air travel. Every 10 years since civil aviation began. The world has seen changes in the types of planes that have been in service to the speed of sound air travel as well as developments and changes to the business in all aspects of all areas. It is this that has paved the way that British Airways do business and will carry on perfecting and tweaking its service so passengers
In contrast, the British Airways considered Virgin Atlantic Airways as its major competitor. Due to the deregulation of the European Airline, many airlines have been able to cope with the changes and make a strategic move of entering in this travel industry. One of the industries that open its market to the airline industry is the British Airways (BA). British Airways is regarded as one of the UK’s largest international scheduled airline. It is known for being such because of the strategies imposed by the management of the airline industry.
British Airways (BA) is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. It is the largest airline in the UK based on fleet size, international flights and international destinations and second largest measured by passengers carried, behind easyJet.
British airways plc. Being the largest and one of the most leading airline in the world and the flag carrier airline of the United Kingdom. Based in waterside
Stakeholder is a person having direct or indirect interest in the firm’s objective, which include customer, board of directors, employees, shareholders, suppliers etc. They track the satisfaction of various constituencies who have critical interest in and impact on the company’s performance (Kotler Keller,2012). Take gate gourmet as an example it is the supplier of British airways, as a stakeholder it plays an important role in the development of the firm whereas it is also crucial to assess the stakeholder for maintaining the long-term relationships. There are three main connection features, which drives the value of the stakeholders. This essay will map British Airways stakeholders as well as the ethical concerns it has
British Airways is the one of the largest airline companies, and the passengers carry overall in the fifth largest in the world. Most of plans are stay in Heathrow Airport which is the highest of main international airport. The British Airways has a long history and airlines cover 133 countries; include 373 airplanes. The BA Company includes 50,086 workers to be in the service, which is one of the largest employers and employees in the United Kingdom.
BA’s product in essence relates to the flights offered. However, the product can be drilled down into specific areas ranging from the airport lounges around the world, the ‘extras’ that you can buy on board such as model BA aeroplanes or even package holidays. Each of these has been specifically tailored to meet customer expectations (which are highlighted in the section of the report titled ‘target market’). This part of the marketing mix focuses on how BA’s products are managed and in the Guardian case study article titled ‘BA, Iberia and American Airlines tie-up heralds new era of transatlantic travel’ dated 06/10/2010 it shows how BA have made an executive decision to link their websites with other companies to have the possibility to offer a higher number of routes (products) to their potential customers.
The purpose of this project is explore how information systems helps organisations to make decisions at different levels to achieve set objectives and strategic advantages over competitors .The team carried out research and debate on various companies, and agreed to focus on British Airways. Through literature we found out, that BA is amongst the busiest premium international airlines worldwide, BA operates mainly from Heathrow, London city and Gatwick airports and flies over 35million people to more than 300 cities and freights an average of 700,000 tonnes of cargo each year (ref). BA’s air cargo business, in conjunction with its scheduled passenger services operate under the licence governed by the United Kingdom Civil Aviation Authority
Qantas, Australia’s largest domestic and international airline service, has grown immensely since its formation in 1922 and has dominated the Australian domestic aviation industry for years. However, a recent dispute between the unions and management lead to the grounding of all Qantas flights causing the company to suffer both financially as well as in terms of their
British Airways have been the symbol of the United Kingdom and its airlines for many years. They are the largest airline in the UK and have the largest amount of international flights and destinations. British Airways was formed in 1974 after four UK airlines, BEA, BOAC, Northeast Airlines, and Newcastle, were dissolved. The airline aimed at being a worldwide network and achieving economies of scale. This joining of four different organizations caused the airlines to have over 50,000 staff members and 215 aircrafts, which is considered to be grossly overstaffed and suffered allot of management structure problems. British Airlines also suffered serious cultural differences due to a ‘class’ distinction with the staff members.
First of all the two firms will be introduced and an overview about the merger will be provided. After that some basic economic concepts will be explained, followed by a merger’s consequences on the economy. The next part will then deal with the European Commission, in particular their investigation of the situation and its
With regards to competition within the industry, British Airways' position is strong, even though competition if very strong in the short route sector due to a larger number of smaller competitors and the consolidation of certain competitors. Over time, in the long route sector there is very little difference in prices between the company and its competitors.