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British Airlines - Essay Example
Pages 3 (753 words)
BRITISH AIRLINES By Institution 29th, October, 2012 British Airlines I will analyze the British airways market using various marketing analysis models and theories. To start with is Porters Five Forces Model. On the level of competitive rivalry, the airline caters for both long flights and short domestic flights…
The airline has restrictions to be the sole supplier of jet fuel in the airport. The airline also gives priority of landing slots to a systematic historic right of existing users. In the power of buyers, the airline has low concentration of buyers to suppliers (Brownsell 2009; Dombey & Odell 2002; Jackovics 2002). This means that the airline has a low bargaining power. Moreover, the airline has increased the internet usage thus creating awareness and interaction among the customers (British Airways 2010a; 2010b; British Airways 2010c). Regarding the threat of new entrants, the company has introduced many barriers to entry such as the high regulatory requirements and high capital cost. When taking into consideration the threat of new substitutes, there are a few direct substitutes such as Eurostar for short haul flights and no notable substitutes in the long haul flights (Benady 2008; British Airways 2000a; British Airways 2004a). The following is a PESTEL analysis of the airline to determine the level of competition in the external market. On the political concern, there are heavy regulations governing the airline and compliance is essential to continue operations. ...
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