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Airline Operations - Essay Example
Both British Midland International and United Airlines have had a checkered history of operations in intra-continental and inter-continental markets in the world. BMI is British and United Airlines is American in origin and now are faced with an intensely competitive environment both strategically and operationally…
The current market-centric performance of the two airlines is determined by their internal and external environments. For instance the internal environment consists of the airline's strength/weakness and opportunity/threat framework, organizational culture, leadership style, management and organizational structures, quality, value chain and HR management, communication, operations, finances, marketing, operations and so on. On the other hand the external environment consists of political, economic, social, technological, regulatory/legal and general environmental factors along with external supply chain management, strategic competitive environment and so on.
Their product and marketing strategies are essentially aligned to the strategic competitive environment while operational strategies are basically influenced by the internal value creation methods. Product placement policy in different segments of the market of the two airlines has shown some constraints too. Marketing strategies of the two companies also have suffered reverses in the recent times despite a higher level of activity in the domestic markets. Sustained efforts to maximize the difference between costs and revenues are motivated by the invariably intensifying level of competition in both the domestic and international sectors. ...