CURRENT AND FUTURE STRATEGIES OF BRITISH AIRWAYS

Current and Future Strategies of British Airways

Current and Future Strategies of British Airways

Overview of British Airways

British Airways has a worldwide network, is one of the major airlines around the world and is part of the One World Alliance. According to IATA statistics, British Airways was ranked eighth in the provision of freight tonne-kilometers in 1998. The company is the main centre of Heathrow, where most of its activity is concentrated. In terms of air cargo in the United Kingdom, Heathrow handles 75% of British Airways rose tons is the next largest airport Gatwick (18%) and Stansted (4%) (Stacey, 2009).

Mission Statement

British Airways' mission is "to be the leading airline firm with emphasis on the highest standards of customer service and satisfaction. British Airways has introduced a new mission statement "to be the undisputed leader in world travel."

Current and Future Macro Environment and Factors of Change

A strategy can not replace a good business strategy. The success of cross-border operations are generally based on a unique service concept, knowledge or technology, low cost and well established brand (Minztzberg, 2009). One company trying to sell in foreign markets tend to face an inherent disadvantage in relation to competitors. Needs and tastes of foreign customers tend to be different, obstacles abound in May from the identification of good local suppliers to respond to the skeptical reception, and the model of the company may be different. Basically, on all these fronts, competitors may have the advantage (Lynch, 2009)). South West of no frills service to regional destinations at low prices (Kesteven, 2009).

British Airways Current Position in the Industry

Being the national airline is an inherent advantage for British Airways that the market should recognise. This can be exploited to the benefit of the airline. British Airways is firmly committed to being at the forefront of technology, offers check-in via mobile Internet innovation in the technology of flight. In long-haul flights for all passengers and flights of short distances for business people is an advantage. The need of the hour for British Airways is to restructure its short-haul network and the launch of a new pricing strategy, and online booking system, allowing it to compete more effectively (Lynch, 2009).

BA has improved the range of services it can offer to customers through its policy of "global partnership". BA is a founding member of the global alliance of airlines. Other founding members were American Airlines, Canadian Airlines, Cathay Pacific and Qantas. The main reason for this arrangement is that research showed that customers want to buy the full range of services they need from one company instead of several airlines. These partnerships also offer opportunities to reduce average costs through economies of scale (Ann, 2009).

British Airways has lost significant market share of low cost carriers to the growth of low-cost, short-haul market. Assistance of small airlines have led to a decline in revenue because there are many requests for air travel and small airlines diluted, the number of passengers flew ...