Unique Resources / Capabilities 25 10.0 Sustainable Competitive Advantage 26 11.0 Summary of the Strengths and Weaknesses 27 Task C 28 12.0 Strategic Direction 28 12.1 Market Penetration 29 12.2 Product Development 29 12.3 Market Development 29 12.4 Diversification 30 13.0 Strategic Fit 30 14.0 Summary on Strategic Fit 33 References 34 1.0 Introduction The aim of the study has been to conduct a strategic analysis of an UK based airline company offering package holiday. Therefore, in this context, the company that has been chosen for the study is British Airways. British Airways is based in the UK and is the biggest scheduled airline that runs internationally (Scribd, 2009). It offers flight services of low fares for customers availing its holiday packages and carries the passengers to and from the centrally located airports. The company also offers holiday packages that consist of super value packages for hotels as well (The Telegraph, 2011). A person can enjoy both the flight facility as well as hotel facility and thus visit numerous destinations with British Airways which can save time as well as cost (British Airways, n.d.). Tour operators tend to put the numerous elements of the holidays and thus sell them as a package. The packages are sold either to the public directly or through travel agents. There are innumerable tour operators offering enormous ranges of the holidays as well as destinations (Holiday Bargains, n.d.). The term ‘package’ generally is defined as a set combination of two services at minimum. They must be offered at inclusive prices and must include components such as transports, accommodations or other services that are important for the tourists. The holiday market of the UK seems to be quite competitive and the industry tends to operate at quite low margins (BIS Department for Business Innovation & Skills, n.d.). The main rationale for choosing the company is that it is the leader in airline industry that offers both the flight as well as the holiday package services. The company chosen will assist in comprehending the trends of the airline company offering the package holiday in the UK. Task A 2.0 PESTEL Analysis The PESTEL analysis tends to classify the environmental components into political, socio cultural, economical, technological, environmental as well as legal. It assists in comprehending the main drivers leading to change as well as the external factors affecting an organization. Political Factors The political environment of the UK is quite stable. However, the terror attack had a major impact upon the package holiday industry of the UK. Such terror attacks led to tight security as well as strict immigration laws. The package holiday industry suffers in the long-term if such turmoil keeps on continuing. This tends to affect the perception of the tourists. In recent times, strikes called by the staffs of the British Airways had an impact upon its holiday business. In future, such scenario can occur which might have an impact
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