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British Airways is an airline company registered in the United Kingdom. The airline founded in 1974 enjoys exclusive rights accorded by the government to operate in international market (Katie, 2013). The airline’s target group includes corporate class, upper middle class, and middle class.
British Airways is the biggest group of aircrafts operating together under the same ownership in the United Kingdom. The airline is very successful in the international market in terms of flight, and destination numbers. Its biggest rival is Easy Jet, which has the largest number of passengers transported in a year (Mayer, 2011).
Strengths
Strengths are organizational elements that boost its resource capacity and competitiveness in a market. They are part of an organization’s internal environment and are beneficial.
Strengths that make British Airways successful in international market include unassailable support from the government, a strong center of commerce in the United Kingdom, and a potent brand that enjoys exceptional international presence (Mayer, 2011).
British Airways has operations in six continents, which has helped to market its brand widely and effectively. Other strengths include a fleet size of more than 250 aircrafts, 150 international destinations, an inclusive corporate culture, as well as a highly qualified and skilled workforce (Katie, 2013).
Weaknesses
Weaknesses are organizational elements that limit its ability to be competitive and aggressive in a market. Two major weaknesses prevent British Airways from fulfilling its potential in the airline industry. The first weakness is depleted resource capacity that weakens its ability to compete effectively with rich airlines from the Middle East (Katie, 2013).
This has resulted in limited market share for the company, thus reducing its activity in the international market. The second weakness is weak marketing strategy. International markets are very competitive (Mayer, 2011). Therefore, it is important to apply an equally competitive marketing strategy that will look ahead of the competitor and identify any gaps.
Opportunities
Opportunities are organizational elements within the external environment that have potential for success if exploited effectively. The first opportunity for this airline is the Heathrow terminal, which is a major center for commercial activity with an excellent global presence (Mayer, 2011).
With competition in the market increasing everyday, it would be opportune for the airline to nullify efforts by its competitors who are acquiring a bigger market share. This opportunity would help in growing the airline’s brand, as well as increase its customer base (Mayer, 2011).
The second opportunity for the airline is to diversify and expand its global operations. International market dynamics are swiftly changing (Katie, 2013).
This includes changes in consumer needs and preferences, as people are willing to adventure by trying out new things. Therefore, the airline can take advantage of this phenomenon by introducing new services and expanding existing ones. This will retain their current clients and attract new ones.
Threats
Threats are organizational elements from the external environment that act as a source of danger. With the global economy still dealing with effects of the 2007 financial crisis, most threats to big businesses are financial (Katie, 2013). The case is no different for British Airways, as they face serious threats from the rising cost of fuel and labor.
These two resources are crucial to operations for the airline, and might pay more for them. Another major threat for the airline is increasing competition in the global market, especially in Europe where rich airlines from the Middle East have introduced their services (Mayer, 2011). The biggest competitors include Jet Airways, British Midland, Emirates, and Virgin Airlines.
References
Katie, J, 2013, Strategic Management: British Airways, Oxford University Press, London.
Mayer, F, 2011, Risks and Decision Making: Using the Example of British Airways, Cengage Learning, New York.
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