Strategic Marketing Assignment 1
Critical analysis of British Airways
1.0 Introduction
Research has suggested that in order for a brand to achieve profitable success, it is essential to attain strong operational effectiveness as well as a favourable strategic position through providing a unique added value to a product or service that is similar to that of competitors within the same market (Michael Porter 1989). Since the organization was privatized in 1987, British Airways (BA) has gained unprecedented financial growth within the increasingly competitive airline market. BA is now considered one of the pioneering airlines in green technology adaptation and environmental friendly strategic decisions. With flights to more than 300 destinations, carrying close to 33 million passengers; British Airways is one of the largest internationally scheduled airlines in the UK.
This report conducts a critical analysis of the British Airways organization in the context of its competitive environment, by evaluating the route of their competitive advantage over other airlines within the same market. The report will begin with a Segmentation, Targeting and Position (STP) analysis in order to evaluate how well they achieve customer orientation. In addition, a PEST analysis as well as Michael Porter’s Five Forces analysis will be conducted, highlighting potential macro-environmental and external factors that may influence BA’s future profitability. Lastly, a SWOT analysis will be conducted which will connect BA’s objectives to potential, actionable tactics to be carried out for the future. The report will be summarized with a conclusion, identifying the activities that contribute to their cost leadership and product differentiation abilities, as well as potential weaknesses in their current strategy, in order to guide strategic decision-making processes for the future.
2.0 Route to competitive advantage
2.1 Vision
‘Compete 2012’ is a strategic initiative developed by British Airways that intends to achieve
1.0 Introduction
Research has suggested that in order for a brand to achieve profitable success, it is essential to attain strong operational effectiveness as well as a favourable strategic position through providing a unique added value to a product or service that is similar to that of competitors within the same market (Michael Porter 1989). Since the organization was privatized in 1987, British Airways (BA) has gained unprecedented financial growth within the increasingly competitive airline market. BA is now considered one of the pioneering airlines in green technology adaptation and environmental friendly strategic decisions. With flights to more than 300 destinations, carrying close to 33 million passengers; British Airways is one of the largest internationally scheduled airlines in the UK.
This report conducts a critical analysis of the British Airways organization in the context of its competitive environment, by evaluating the route of their competitive advantage over other airlines within the same market. The report will begin with a Segmentation, Targeting and Position (STP) analysis in order to evaluate how well they achieve customer orientation. In addition, a PEST analysis as well as Michael Porter’s Five Forces analysis will be conducted, highlighting potential macro-environmental and external factors that may influence BA’s future profitability. Lastly, a SWOT analysis will be conducted which will connect BA’s objectives to potential, actionable tactics to be carried out for the future. The report will be summarized with a conclusion, identifying the activities that contribute to their cost leadership and product differentiation abilities, as well as potential weaknesses in their current strategy, in order to guide strategic decision-making processes for the future.
2.0 Route to competitive advantage
2.1 Vision
‘Compete 2012’ is a strategic initiative developed by British Airways that intends to achieve