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British Airways SWOT analysis
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| Words: 1438 | Submitted: 31-Mar-2011
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DescriptionBritish Airways SWOT analysis
Strong brand recognition
High level customer experience
Low cost base and lower costs than other airlines
Part of Oneworld Alliance
one of the leading world cargo
Delayed & Cancelled Flights
Reliance on established revenue sources
Poor communication within the company
High Cost For Extra Luggage
Increasing demand for transatlantic flights
Acquire failing airlines or their assets
Decreasing costs as industry expectations decline
Innovative new ways of seating
Able to join the "Mile High Club" for a fixed fee
Political and Legal Factors
The start of the millennium is turning out to be some of the most difficult times that
the airline industry has ever faced. The events of terrorism attacks in September 11,
2001 in New York and July 7, 2005 in London along with the wars in Iraq have no
doubt caused an unprecedented crisis and political instability. The events have
caused the introduction of new security regulations from the EU & US and a fall in customer travelling confidence.
Governments have controlled where airlines can fly, and aspects of their product
planning and pricing policies. In recent years, substantial regulatory reform has taken
place, giving carriers more opportunity and increasing the market competition.
Deregulated companies like BA require systems that enable decisions to be made
quickly. Open skies is an agreement which changes the regulatory landscapes
A significant legal factor affecting BA is the power of trade Unions. BA has suffered many strike actions and is aware of the implications that the trade unions can cause. Legal regulations on employee rights, customer rights and an upsurge in environmental and ecological issues are more factors that BA must consider.
New regulations from the US and the EU mean airlines have to provide details such as where a passenger is staying on the first night of their visit, their place of birth and their home address, up to 72 hours before departure. BA has already started to react to this by collecting required information on the ‘manage my booking’ section of its website.
It may be necessary to change the specification of a product quickly, if a competitor offers customers better value-for-money. The demand for air travel is characterised by very high income elasticity. Therefore, as the world economy grows, so the demand for air travel can be expected to increase too.
The political situation in Iraq has helped to drive oil prices to a record high and for
BA, the oil price rise might add £100 million to their costs. In response, the cost of
fuel surcharges is always at risk.
BA is in the business of transporting people to and from worldwide destinations for both business and pleasure. If the international economy slows down, business trades less ...
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