This has led to a significant decline in demand in as much as there has been a steady rise in airline services.
BA has practically dominated the airline industry in the UK. This is because it is rated as one of the major airlines in the UK with more than 200 destinations distributed in 90 countries. It therefore experience less stiff competition and employs aggressive strategies to provide services to even more customers. BA, through various alliances is very keen to remain on top of competition in the industry as through the alliances, it is able to gather more resources and reach more people through additional destinations. Its products are segmented into different classes in order to be able to serve more customers who fall under different consumer categories. Through the segmentation of classes, BA is able to provide airline services to various groups of customers at different prices, hence having everything for everyone. It therefore remains at the edge of competition as it attracts customers from all sorts of social classes. The airline also engages in a variety of service provisions such as mail and freight services and other support services in order to increase customer coverage. Due to its aggressiveness, it is able to dominate the UK airline industry by having more passengers than all its other rivals.
The strategies of BA are those that are not focusing on the real market situation. They try to do their business without any preparation for any eventuality. This is shown by the economic downturn that struck the company for close to 3-4 years. Such a strategy is not healthy for such a major airline as it might result to tremendous losses.
The strategies of Ryanair can be classified as those that focus on different market situations and make an airline be ready for any eventuality. This is evidenced after the economic downturn that led to other airlines facing their exit from the market but instead, ...Show more