Create a SWOT (Strengths, Weaknesses, Opportunities & Threats) Analysis on one of the following companies (20 marks);
British Airways plc
You can choose which of the above companies you want to use. Once you have completed your SWOT analysis,
I choose British Airways plc. The SWOT of British Airways plc is easy to understand. With regard to strength of the British Airways plc, there are five points. First, the British Airways has a broad geographic presence. It has approximately 150 international destinations across 6 countries. Second, the British Airways is sole airline occupant of Heathrow Terminal 5 after March 2008, because it is significantly boosting the service it offers customers in the UK. Third, the British Airways has powerful alliances. In other words, it is means that the ‘British Airways is a founder member of the one world alliance, along with other major players such as AMR Corp and Cathay Pacific, boosting its competitive strength at the global level (MahaSagar, 2013).’Next, the British Airways established online presence. It is means that the company has developed the online ordering system and is working to shift completely from paper to e-tickets, as well as improve the development of website and make order tickets easy and efficient. Finally the British Airways has high levels of consumer recognition and trust. The weakness has four points. First, the UK airways are reliant on airlines. For example, ‘British Airways is heavily reliant on the airline industry, which accounted for 99.7% of its total operating profit in fiscal 2007 (MahaSagar, 2013).’ Actually the government need focus on rising fuel prices and increasing pricing competition. Second, the BA’s image is exposure by problem. ‘During 2007 the image of British Airways’ eponymous brand suffered from factors such as consumer concerns about carbon emissions and, more specifically, the scandal surrounding fuel surcharge price-fixing (MahaSagar, 2013).’Third, the British Airways is bias towards the UK. In other words, although the British Airways has a broad geographic presence, the company rely on UK market, such as in 2007 the airways accounted for almost half of its total revenue. As a result, British Airways will get low-cost carries in the future. Finally, British Airways are laggards in terms of employee management.
The opportunities of British Airways are the most important things. First, the Heathrow Airport is the most hubs across the world. Second, the British Airways has strong growth in emerging markets. For example, China and India is emerging markets. In these countries, the investment in the travel infrastructure, rising foreign tourism, the expansion of the middle class and increasing international business opportunities. Third, in modern countries, internet is the most popular ways to know something. So the British Airways should increases access to the internet. The internet is not only more efficient and safer, but also more convenient payment online. Finally, British Airways has powerful alliances. In other words, British Airways has developed partnerships with other airlines and makes sure competitive and international development. The threats with which British Airways is faced with are pricing competition. Some low-cost airline, such as Ryanair is ongoing expansion. Then the threat is raising fuel prices. ‘Fuel price increases would represent a significant threat to British Airways, particularly in the highly price-competitive conditions of its core markets. Indeed, fuel price rises were largely responsible for the company’s fall in operating profit in fiscal 2007 (MahaSagar, 2013).’ In addition also, the airline has some unpredictable external factors such as terrorist attacks which happened on 11/09/2001 and 07/07/2005.
b) Write an essay analysing and evaluating the factors that have made this company a success. Word count between 1500-2200 words. (25 marks).
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UKESSAY (2014) Stakeholders [Online] Available from: http://www.ukessays.co.uk/essays/business-stakeholders-shareholders/stakeholders.php [Accessed: 2014]
Stephen G(2008) The Success of British Airways [Online] Available from: http://www.sgbphotography.com/Travel_Articles/the-success-of-british-airways.htm [Accessed 2006]
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