Organizational strategy is a long term future planning of the organization. It is a development plan for commercial and industrial organization, especially constructed from the point of cooperation organization dealing with the external environment. The aim of the strategy is to ensure the sustainability of the company (Gomes, 2006, 52). To discuss and critically analyze the impact of micro environment factor I have chosen British Airways. In the following paragraph, I will conduct micro analysis for British airways using porter's five forces framework. Further I shall be discussing and identifying the implications of important threats to British Airways and will be assessing some strategies to lessen the impact of threats. In addition from this analysis, ill shall be identifying the position of British airways in the market by evaluating sustainability and capabilities of British Airways.
Organization description
First British airline company was established in 1919. At that time, there were many small airline companies operating like Aircraft Transport, Travel, Handley Page Transport, In-stone Airlines and British Marine Air Navigation they all face immense competition from outside forces and to beat that immense competition all of these small airlines combined and form British Airways. Major Players Competes in following industries:
Airlines
Transportation Services
Air Cargo Services
Their leading players are:
All Nippon Airways Co., Ltd.
Delta Air Lines, Inc.
Japan Airlines Co., Ltd.
British Airways is a full service global airline that offers low fares with an extensive global route network which also manages to book the flights through online access. This is another part of their major offers for their customers. The continuous development of the airlines rooted from their past of civil aviation. British Airways has worldwide network, s one of the major airlines around the world and s part of the One World Alliance (Jasper, 2000, 17). Accoring to IATA statistics, British Airways was ranked eighth n the provision of freight tonne-kilometres n 1998. The company's the main centre of Heathrow, where most of its activity s concentrated. N terms of air cargo n the United Kingdom, Heathrow handles 75% of British Airways rose tons s the next largest airport Gatwick (18%) and Stansted (4%). British Airways has undertaken substantial investments n facilities for loading with the creation of British Airways World Cargo Centre and refrigerated storage at Heathrow.
Micro Environment Analysis of British Airways
In the case of British Airways, I will try to use porter model as the base for my analysis. As the first step of strategy analysis, we should have a five forces framework design.
Treat of New Entrants
The competition in an industry will be higher, when at is for relatively easy for other companies to enter the industry. In such circumstances, new entrants could change major factors of the market environment including market shares, prices and customer loyalty. The threat of new products' entries for British Airways will depend on the extent to which there are barriers to entry. Whether it is easy or not for a firm to enter a market depends on aspects such as ...