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Internal strengths and weaknesses of british airways

The Civil Aviation Act 1980 was passed to enable this to happen. Lord King was appointed Chairman in 1981 and charged by the Secretary of State for Trade to take all necessary steps to restore the Group to profitability and prepare it for privatisation.

In February 1987 British Airways was privatised. Over one million applications were received for shares in the airline, offered at 125 pence, making the flotation 11 times oversubscribed. Freed from the constraints of Government ownership, British Airways announced a merger with British Caledonian in July. The merger went ahead following approval by the Monopolies and Mergers Commission later that year. Today British Airways operations are carried in more than 130 countries and cities round the globe with 600 offices and destinations.

If we closely analyze the success of British Airways over the years, we can see that due to adapting new technology in the business and the use of appropriate technology in proper planned systems have had dramatic changes in the operation in British airways.

The Press Office; www. A way of doing this is by compiling a SWOT analysis. A SWOT analysis is the focus internal strengths and weaknesses of british airways the strengths, weaknesses, opportunities and threats facing a business internally and externally.

The idea of such an analysis is that the organisation builds upon its strengths, minimise its weaknesses, seizes its opportunities and eliminate the threats as much as possible. This is a critical success factor for the organisation. It has established such a strong brand from its reputable history and long running operations. The BA logo found at the top of this report is instantly recognisable. British Airways is a huge organisation and such brand acknowledgement can only occur when an organisation is of this sort of stature.

This is particularly relevant for corporate travel. Here businesses receive points for the number of times they use a BA flight. These points can be redeemed for rewards such as; reward flights, chauffer driven limousine travel, discounted hotel stays and express rail tickets. This is an effective way of encouraging repeat custom from businesses. S which obviously has a long flight time. Also the in flight meals are highly regarded, especially in comparison with My Travel.

  • New customers from online channel — Over the past few years the company has invested vast sum of money into the online platform;
  • Strong distribution network — Over the years British Airways has built a reliable distribution network that can reach majority of its potential market;
  • Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.

Leaving passengers with more time to relax and also with a shorter distance to walk to get to the gate. For example, the furthest gate in London Gatwick takes around 30 minutes to walk to. It also contains contact telephone numbers worldwide.

Weighted SWOT Analysis of British Airways

The withdrawal of the Concorde was a major factor in this. BA has a long history and is a well established firm, however over time it has come under much scrutiny due to its high prices, especially in comparison with organisations such as EasyJet and Ryanair. Below is a graph that shows the fluctuating share prices: This shows that the share prices are unsteady at the least. The prices were in massive decline after September 11th 2001. This not only had an effect on British Airways but on the airline industry as a whole.

Although they enjoyed an increase in 2003, the share price has been steady decline in 2004 with few minor increases. The aspect they do not focus marketing schemes to attract prospective customers. This is the opposite compared to most other organisations. Many organisations place too much emphasis on attracting new customers rather than focusing on those they already internal strengths and weaknesses of british airways.

I feel that the company suffers from a deprivation of strategic management for investment, which is the most important aspect for growth of the airline. However it is difficult to rely on short flights to Europe, as it simply cannot compete with EasyJet and Ryanair. An organisation needs innovation to compete in different markets and to increase its market share in those which it already competes. This would not only help them compete with EasyJet but also mean that they could possibly sell some of their aircraft as they would not need as many.

Another alliance that I think should at least be a consideration is that of an alliance with a large hotel chain, such as the Hilton Group.

Both firms offer luxury services and it would be a logical association for the two of them.

British Airways SWOT Analysis, Competitors & USP

For example, if a flight is either delayed for longer than 12 hours or is cancelled for the day, the firms could offer discounted rooms. This would suit people far better than driving back to their homes. Such an alliance would also be logical as the Hilton Group has many hotels located less than 30 minutes drive from many major international airport terminals.

Taxation and deregulation have already revealed the significant influence the government has on the sector. The lucrative routes or slots are scarcely available for smaller firms, but for organisations with big market share although it is decreasing like BA it is relatively easier to get these resources. For shorter routes, the main threats are EasyJet, Ryanair and Monarch. Increased competition is a benefit for the consumer but not for businesses. One of the worlds largest sources for oil is Iraq, which is of course under attack from the U.

S and the U. This is resulting in far less oil being exported which in turn forces distributors to sharply raise their prices. With an increasing number of attacks being carried out, consumers are far more concerned about flying, especially to the US, internal strengths and weaknesses of british airways they were five years ago. Apart from increased security levels, there is no specific way to stop these attacks, causing the trans-Atlantic market to decline dramatically.

From the above analysis, it is clear to see that British Airways is in an unsteady position. Not only are their finances in turmoil but competition seems to get stronger everyday.

Dictionary

BA does not focus enough on attracting new customers which means they would go to one of the competitors. An uncertain future lies ahead of the organisation, which is certainly not being helped by the war in Iraq.

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