BRITISH AIRWAYS

British Airways Corporate Strategy



British Airways Corporate Strategy

a. In researching the nature of the industry environment and structure, do key issues exhibit characteristics of complexity? Provide evidences of these characteristics?

In our assignment we analyze the strategy of airline industry and compare it with British airways. Southwest Airlines began with a vision. Herb Kelleher looked at the airline industry, saw an opportunity, and made a move. The idea was simple: "short-haul, point-to-point flights; a fleet consisting only of Boeing 737's; high-frequency flights; low fares; and no international flights." All this was to be offered in a market traditionally characterized by steep prices, set to compensate for high variable costs as well as high fixed operating costs. Furthermore, they would compliment their cost strategy with the best customer service in the industry.

British Airways has a long history of a combination of the first airlines in 1919, just formed in 1924 to Imperial Airways. In 1939, the Imperial name was changed to overseas British Airways Corporation (Boac) due to the expansion of the British Empire. In the same period, British Airways Limited were nationalized and Imperial Airways. The name Boac lasted until the seventies, when it was changed to British Airways. In 1987, British Airways was privatized in the stock market. Today, British Airways is the largest airline and flag of the United Kingdom and one of the largest in Europe (www.britishairways.com).

British Airways plc provides air services operations both at international and domestic level. Its major business is commercial flight. It also caters to various services like cargo freight, mail services and other auxiliary services all over the world. Mainly it runs its business in United States and Europe. It is situated in Harmondsworth, Middlesex, employing 42,755 people all over. It is emerging to be competitive and sustain its integrity as the best airlines which stress superior customer service. It has 300 destinations throughout the world; this extent of operations offers customers with world-class services at various destinations. Its customers range from explorers to executive.

The European airline industry is highly regulated, since individual countries and governments aim to protect their flag carrying airlines. With the expansion of the EU, and the breaking down of trade barriers, the airline industry was deregulated in 1992. This meant that any European airline could fly anywhere in Europe and land. This offered airlines the chance to expand routes across the continent and to apply market strategies with greater accuracy.

British Airways plc (BA) is the world's biggest international airline, carrying more passengers from one country to another than any of its competitors. British Airways is a scheduled international passenger airline. The Company's main activity is the operation of international and domestic scheduled passenger airline services. The Company's principal place of business is London Heathrow, which handles more international passengers than any other airport in the world. Because its US competitors carry so many passengers on domestic flights, it is the fifth biggest in terms of overall passengers (in terms of revenue passenger ...