SWOT Analysis: British Airlines
A British airway was the worst rated airlines in 1981 and was called Very Troubled airlines with severe losses, bad quality, overstaffed and very near to bankruptcy. But with the Survival Plan Initiated by John King, the chairman in 1981 changed the image and turned failure into success.
The things which he did was simple following the SWOT analysis by analyzing the internal and external factors leading to failure and dissatisfaction.
By 1990 British Airways was converted into a profitable entity. This could be done through SWOT analysis.
Definition of SWOT :
A SWOT Analysis is a helpful tool which helps in analysing the strength, weakness, Opportunity, and threats of any business venture and It helps in giving a direction to planning and assists in taking informed decisions too .
Internal Factors:
Strengths:
It has international Operations and the employee productivity is very high. It has got strong presence on the busiest airport of Europe that is the London Heathrow International Airport.
Strengths of British Airways :
1. Very strong Brand Image .
2. It ahs OpenSky Agreement along with international operations.
3. Skilled staff.
4. Expansion of Aircraft fleet.
5. Economies of scale have been designed by using spare space in passenger aircraft for carrying cargo and give cargo services too.
Weaknesses: Over the time it has witnessed a decline in the profitability. The employees are dissatisfied as they do not receive any post retirement benefits. The major geographic regions have not shown any growth for quite some time.
Weaknesses of British Airways :
1. High cost of management with declining profits .
2. Labour strikes quite often due to strong and powerful Employee Union .
3. Strike in Christmas which is the peak season for air travel.
External factors:
Opportunities:
British airways hold the reputation of globally known airline with its markets spanning all over the world. It has shown good increase in its
The things which he did was simple following the SWOT analysis by analyzing the internal and external factors leading to failure and dissatisfaction.
By 1990 British Airways was converted into a profitable entity. This could be done through SWOT analysis.
Definition of SWOT :
A SWOT Analysis is a helpful tool which helps in analysing the strength, weakness, Opportunity, and threats of any business venture and It helps in giving a direction to planning and assists in taking informed decisions too .
Internal Factors:
Strengths:
It has international Operations and the employee productivity is very high. It has got strong presence on the busiest airport of Europe that is the London Heathrow International Airport.
Strengths of British Airways :
1. Very strong Brand Image .
2. It ahs OpenSky Agreement along with international operations.
3. Skilled staff.
4. Expansion of Aircraft fleet.
5. Economies of scale have been designed by using spare space in passenger aircraft for carrying cargo and give cargo services too.
Weaknesses: Over the time it has witnessed a decline in the profitability. The employees are dissatisfied as they do not receive any post retirement benefits. The major geographic regions have not shown any growth for quite some time.
Weaknesses of British Airways :
1. High cost of management with declining profits .
2. Labour strikes quite often due to strong and powerful Employee Union .
3. Strike in Christmas which is the peak season for air travel.
External factors:
Opportunities:
British airways hold the reputation of globally known airline with its markets spanning all over the world. It has shown good increase in its