Analysis on British Airways - Essay Example

Analysis on British Airways British Airways is one of the largest airline in the United Kingdom and the third largest airline in Europe. It has dominated the European market and other parts of the world. The airline is very popular for being one of the oldest passengers and cargo carrier in the world and also for its efficiency and cheaper rates in terms of fare charges. (Martyn, 2000) The significant growth that has been experience by the airline is as a result good management of the organization that has developed over the years. The airline has made good use of PEST analysis in their marketing strategies for it takes a feasibility study before launching their services in a new region. The environment in which an organization is operating in is very important and requires to be studied keenly for it has an impact on either the success or failure of any business venture. Some of the marketing environmental aspects that British Airways has been concerned with in their marketing plan are internal environment in which the company is operating in and both the micro-environmental and macro-environmental factors that either affects the performance of the organization directly or indirectly. The company has made good use of technological factors such as allowing their clients to book their flights through the internet. This has enabled the company to increase their sales drastically unlike before where one had to buy air ticket through their agents or the company itself. Before British Airways can launch their services in a given region, a feasibility study is conducted to ensure that they have looked into factors like level of inflation, interest rates and gross domestic product (GDP) growth prospects of the country. This kind of a study is very important especially for companies that are operation international for the level of inflation varies from one country to another. Political factors is another crucial issue that is considered by the company to ensure the country has a stable government as political arena usually has a great influence on consumer’s spending power and business regulation. Some of the political factors British Airways consider are the stability of the government, influence of the government on taxation and position of the government on the marketing ethics. Since there are other competitors in the air transport industry, British airways has taken into consideration that their customers have a high bargaining power. Due to this reason they ensure that the fare rates are friendly as their customers can always switch to purchase the substitute services from other airline companies. However, due to the high capital required to start an airline, British airways is not under a very severe threat as compared to other business ventures that would require low capital to be started. On the other hand, the organization has to ensure it spends heavily on advertising since there are a number of other companies offering the same services of air transport. For this case, it has to keep on advertising and offering competitive fare rates and other promotion activities to guarantee them that their services will continue prevailing in the market. 1 Another factor that has guaranteed the services of British Airways that they will continue to prevail in the world market in their product services. They have ensure that they services are quality and their guarantee safety for their passengers. Being on of the oldest airline in the world, it has a brand name that has increased their goodwill in the market. British Airways do not operate on fixed rates on their fares through the years and for this case, they usually have seasonal pricing whereby they charge more during the peak season and low rates during low seasons. They also ensure that they charge reduced rates for customers who pay a return ticket unlike if one pays for one ways ticket and another one when returning which is expensive. 2 British Airways has ensured that their services are within the reach of their clients since they operate in various parts of the world. They have also ensured that one purchases their ticket online through the internet although one can buy then through their authorized agents scattered all over the world. The airline ensure that they is open communication about their services as they keep on advertising through a number of media such as television, radio, bill boards etc. They have also a well enhanced public relation office that ensures that customer’s problems are addressed when they occur. Another factor that has contributed to the increased sales of British Airways services in the knowledge of their employees, clients and the management as they directly or indirectly advertise for the company’s services. These individuals knowingly or unknowingly advertise the company’s services when they talk about their services to a friend or a relative. The company constructed a competitive array before they offer their services for sale to a given region. This enables them to be at least assured that they services will be able to prevail in that particular region. In this situation, the company first of all knows that its main aim is to offer transport services to clients and for this case, it performs a feasibility study to ensure that it comes up with the kind of services they customers would expect from them. They also identify their competitors in the airline industry who are operation in that particular region so that it can take advantage of their weaknesses. By determining the strengths and weaknesses of the competitors, they are in a position of capitalizing in them. After this, they come up with a well integrated product service that will have been formed after taking into consideration of the weaknesses and strengths of their competitors. 3 In conclusion, we can say that British Airways will continue prevailing in the market since it has made use of business strategies that guarantees success to any business venture. References Gordon, I (1989): Beat the Competition: How to Use Competitive Intelligence to Develop Winning Business Strategies. Oxford, Basil Blackwell Publishers Hammer, M. and Champy, J. (1993): Reengineering the Corporation: A Manifesto for Business Revolution, New York, Harper Business Books Martyn, G. (2000): Dirty Tricks: British Airways' Secret War against Virgin Atlantic, London: Virgin McGahan, A. (2004): How Industries Evolve - Principles for Achieving and Sustaining Superior Performance. 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