Marketing Strategy for Growth: British Airways - Essay Example

For sustainable growth in the industry, an overview of the external and internal environment is investigated before devising the appropriate strategy.

• Political: Compliance with heavy rules and regulations with respect to security, taxation, environmental legislation.
• Economic: Industry is highly vulnerable to business cycles of recession and growth so major fluctuations are observed in terms of costs and exchange rates. The presence of intense competition is influencing consumer spending patterns.
• Technological: Innovation and technological advancement in terms of communication, for instance, teleconferencing, electronic commerce, and online booking services need to be incorporated in the business to stay relevant in the market.
• Internal analysis: British airways score very low on innovation.

Communication inefficiencies stem from bureaucratic structures within the system. The lapse of security measures, luggage handling procedures, low customer service, and flight entertainment hampered the reputation. Despite all this, it has successfully maintained an international customer base, internet facility, training competencies, and Heathrow Terminal five Hubs. This strategy will work on enhancing the brand reputation by improvement in customer service and employee involvement in terms of baggage handling and overall travel experience.

It will be supported by internet backup which will enable customers to engage and provide feedback. Building customer relationships has come up as a highlighted attribute in determining the preference of air travel among consumers. This strategy entails minimum risk and is aligned with the potential strategy of the Airline. This option involves the expansion of flights to new destinations like that of Asia. Due to cost and exchange rate fluctuations along with altering demands for new destinations for direct flights, British Airways can capitalize on its competencies.

Also, the presence of less intense competition in markets like Asia will help the Airline tap the first-mover advantage and strengthen its brand image. British Airways can opt for technological development by offering in-flight internet access as it is dominant in the decision-making of consumers. Improvement in the service will enhance the relationship and long-term profits. The issue of innovation will also be curtailed by this move and it will help in keeping up with the competitive stances. Risk is moderate in this approach as successful implementation of the technology on the flights with efficient service is very challenging.

This strategic option involves diversification into other businesses or markets. For instance, British Airways can allocate its resources towards the catering business for in-flight meals by using vertical integration. But it is a high-risk strategy keeping in view the current situation and environment in mind.

Based on all the strategic options available, it is most viable for British Airways to opt for market penetration and improve on current service and relationships rather than diversifying into new markets. The second best option is product development by introducing technological improvisations. This strategy poses minimum risk and costs and is highly in collaboration with the current business objective of sustaining a credible brand image in the market.