Topics: Airline, Lufthansa, British Airways Pages: 20 (4106 words) Published: July 4, 2015
1.0 Introduction2
2.0 Analysis and Discussion3
2.1 Industry analysis3
2.2 Stakeholders4
2.3 Culture of British Airways5
2.4 Product Positioning7
2.5 Value chain8
2.5.1Primary Activities.8
2.5.2 Support activities9
2.6 SAFE analysis11
Task 216

1.0 Introduction
British Airways (BA) is the nation's flag carrier airline of United Kingdom, and it's the biggest airlines in its fleet size, international destinations, and international flights. BA was formed by merging two major London-based airlines British Overseas Airlines Corporation (BOAC) and British European Airlines (BEA), and two smaller airlines, which made it as biggest Airlines.It carries more than 30 million passengers, earning an average of approximately £9 billion in revenue. British Airways aims at providing high customer satisfaction and high quality service, in terms of comforts, services, food and so on. (Chan, 2000)

BA uses the differentiation strategy as business level strategy. The core competencies of BA are providing a premium quality service. BA takes pride in providing a full service experience to customers in air and on the ground. The operations of management at BA has assures fresh and rich food to be stocked and served to passengers while they are onboard the flights as well as other featured services.Another competitive advantage requires from BA is the setting up of a global electronic network to bring the services closer to the target customers of the airline. A 24-hour customer support group corresponds to customer queries. Online ticket reservation and flight schedules open up a great domain of options available to the prospective travellers (BA, 2008).

2.0 Analysis and Discussion
2.1 Industry analysis
Air travel remains a large and growing industry.In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year.(Grugulis, 2002) British Airways is a major airline ranking ninth in the world in total number of kilometers flown and the third in international kilometers flown. It operates a fleet of 238 airplanes which serve 150 different destinations around the globe, 46% of which are in Europe. The company gets the majority of its revenue, 87%, from passenger travel. The remaining revenue comes from cargo transportation and engineering services provided to other airlines.British Airways competition is the Lufthansa and United Airlines.(Doganis, 2001)

Deutsche Lufthansa AG is a German airline and also the largest airline in Europe, both in terms of overall passengers carried and fleet size.Lufthansa is using a differentiation strategy. (Newberg, 1989) Differentiating the goods and services to satisfy the customers which has been offered from those of others gives a competitive advantage. It is different from British airways. Lufthansa has achieved better punctuality, fewer cancellations, no crashes and injuries, and very few lost baggage, and reducing the flight turn around time. (Bertsimas, 2005) The journey may have been extremely long but the oft-awarded SIA in-flight products and unerring attention to passenger needs.

United airlines
United Airlines is an American major airline headquartered in Chicago, Illinois. It is the world's largest airline when measured by number of destinations served. (Miles and  Mangold, 2005) United airlines has a high level of safety and service, carefully selected routes, niche-market service, convenient schedules, reasonable and competitive fares, and modern, safe, comfortable aircraft. Each premium economy seat has individual nine-inch screens and audiovideo on-demand entertainment, as well as tray tables that slide out of the armrests, bottles of wafer, leather upholstery, blankets and amenity kits. (Higgins, 1996)

2.2 Stakeholders
The stakeholders play a vital role in the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Letter to a Friend
  • A Look at Plot Using Happy Endings by Margret Atwood Essay
  • Happy Endings & August Wilson Fences Essay
  • Endings Essay
  • The Ending of "The Signalman" Essay
  • Sad endings Essay
  • Ending of Isolation Essay
  • Comparing Endings Essay

Become a StudyMode Member

Sign Up - It's Free