Threat of Substitutes * There are few direct substitutes; * Short haul flight: the Eurostar or a ferry. * Long haul flights: no notable substitutes.
Threat of new Entrants * Significant barriers to entry: such as the competitive environment, high regularity requirements and high capital cost requirements. * Barriers to exit are in place which deters new entrants. * The failure of recent airlines such as XL and zoom is likely to deter new entrants (Time online,2008 )
Threat of new Entrants * Significant barriers to entry: such as the competitive environment, high regularity requirements and high capital cost requirements. * Barriers to exit are in place which deters new entrants. * The failure of recent airlines such as XL and zoom is likely to deter new entrants (Time online,2008 )
Power of buyers * Low concentration of buyers to suppliers means they have little bargaining power. * Increased internet usage has amplified awareness and interaction of customers (Keynote, 2008c).
Power of buyers * Low concentration of buyers to suppliers means they have little bargaining power. * Increased internet usage has amplified awareness and interaction of customers (Keynote, 2008c).
Competitive Rivalry * BA caters for both long haul and short haul flights. Within long haul there is little differentiation between BA and their competitors, in terms of price and service offering. * The short haul market is more fragmented with mary small players. * Direct competitive rivalry is fierce, e.g. Virgin has a website opposing the proposed strategic alliance between BA and AA- ‘No WAY BA/AA’ (Virgin Atlantic 2008) * Consolidation of competitors has increased competition
Competitive Rivalry * BA caters for both long haul and short haul flights. Within