• The Airline Industry and British Airways

    Pages: 33

    This 33 page paper is written in two parts. The first part is an in-depth analysis of the airline industry. This includes a comprehensive SWOT analysis examines strengths weaknesses opportunities and threats, a PEST analysis, examining political, social economic and technological influences, and the use of Porters Five Forces model, examining the threat form existing and new competitors, the power of buyers and suppliers and the availability of substitutes. The second part of the paper examines British Airways (BA) as a company looking at their generic strategy that focuses on differentiation and some of their core competences such as the use of information technology and how all these factors fit in with the industry analysis in part 1 of the paper. The bibliography cites 22 sources.

    File: TS14_TEairBA.rtf

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    The Airline Industry and British Airways United Kingdom, August 2004. To Use This Report Correctly,  EXECUTIVE SUMMARY 2 1. INTRODUCTION 3 2. THE INDUSTRY 4 2.1 SWOT Analysis 5 2.1.1 Strengths 5 2.1.2 Weaknesses 6 2.1.3 Opportunities 9 2.1.4 Threats 10 2.2 PEST Analysis 10 2.2.1 Political Influences 11 2.2.2 Economic Influences 14 2.2.3 Social Influences 16 2.2.4 Technological Influences 17 2.3 Global Drivers 18 2.4 Porters Five Forces 20 2.4.1 Existing  Competition 21 2.4.2 New Entrants 22 2.4.3 Power of Suppliers 22 2.4.4 Power of buyers 23 2.4.5 Substitutes 23 2.5 Value Chain, Generic Strategy and the BCG Matrix 23 2.6 Conclusion 24 3. BRITISH AIRWAYS 25 3.1 Background 25 3.2 The Company Today 26 3.2.1 The Mission Statement 26 3.2.2 The Corporate  Objectives 27 3.3 Strategy 28 3.3.1 Generic Strategy 28 3.3.2 Core Competences 31 3.3.3 BA as an MNC 36 3.3.4 Global Drivers 37 4. CONCLUSION 38 Executive Summary The airline industry has been in existence for more than 100 years. During this  time technology has moved forward at a record rate, initially concentrating on the aircraft speed and size, then moving onto controlling mechanism, such as automatic pilots and moving on towards  computerised system and changes in the value chain to increase efficiency as internet sales and supply chain management. Today the air industry is still growing, but has suffered a  few set backs, such as global recession and the terrorist attacks of the 11th September 2001 which decreased demand for air travel. However, increased security and social desires have also  pushed the patterns to growth again. The deregulation of the markets has increased competition which has further squeezed profit margins whilst increasing the need for differentiation f the different  competing firms. Luxury services and budget services have resulted from this pressure. It is in the budget, no frills section , that the most growth is projected. Companies such  as British Airways have seen ad adapted to these changes. British Airways had 44% share of the UK market and seeks to compete by differentiating the brand with a high 

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