British Airway

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Threat of Substitutes
* There are few direct substitutes;
* Short haul flight: the Eurostar or a ferry.
* Long haul flights: no notable substitutes.
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 long haul...
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