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Corporate Strategy Assessment: British Airways - Essay Example
Pages 10 (2510 words)
Corporate Strategy Assessment: British Airways Products, Services, Geographic Scope of British Airways British Airways (BA) is reportedly a full-service global organization that focuses on serving the needs of diverse clientele who travel through air. The organization boasts of offering competitively low airline fares and having access to strategic parts of the world…
In addition, the organization offers travel packages that include hotel accommodations, car rentals and choiced options to avail of popular or unique travel experiences. The full service business model was explained as part of the airline business model in an article published by the Air Transport and Airport Research (2008) headed by Prof. Dr. Johannes Reichmuth. As disclosed, BA, being classified as a “full service network carrier” (FSNC) is “an airline that focuses on providing a wide range of pre-flight and onboard services, including different service classes, and connecting flights” (Air Transport and Airport Research, 2008, p. 5). From a strategy standpoint, BA could actually afford offering lowest airfares, as compaired to other airlines due to their application of the full-service business model. As explained, “as the number of origins and destinations offered rises, load factors do the same, yielding lower unit costs per passenger (economies of density). If higher demand justifies the use of larger equipment, unit costs per seat decline (economies of scale)” (Air Transport and Airport Research, 2008, p. 7). Thus, BA could capture the cost-conscious target market, as well as families who include their children in travelling to tourist spots or vacation destinations. ...
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