External Environment Factors That Affect The British Airways Company
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British Airways Strategic Analysis
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These factors need to be taken into consideration by the management of the company. Factors which are connected with e-commerce and would not be present in traditional business models are highlighted. Political factors all have a very deep impact on the e-marketing strategy of British airways. Flights to countries in which political situation is unstable or where a war starts might be cancelled, and these destinations can lose their attraction to customers for a long while.
Therefore, it is important for British Airways to concentrate on the most popular destinations of the world and target those customers who are interested in travelling there. The company seeks to target these people by a personal approach, which includes attention to every customer according to his level of income and his interests. Terrorism is a crucial social factor which greatly influences the number of people willing to travel by airplane. If the price of Internet decreases in a particular country or if the level of income increases, more people will be expected to travel and use Internet to buy tickets. Among legal factors, e-commerce operations of British Airways can be largely influenced by developments in legislation regulating e-commerce and online shopping.
In case of introduction of a stricter environmental regime, the company might have to cut on the number of flights. Even though all of the mentioned factors have a large influence on the e-commerce operations of British Airways, technological factors are the crucial ones. Innovation potential of competitors in airline e-business, introduction of new technologies in e-commerce and new software and hardware to the market all have a deep impact on the success of the company in the market. British Airways is currently the leader in all of the e-marketing innovations and it pioneers all of the innovative products and services.
It is important to mark that technological factors of macro environment have enabled the company to become the leader of the industry. British Airways has been successful in winning a large share of the online market due to its revolutionary innovation: it was the first airline to offer online check-in. Even though other companies started offering the same services online in a while, British Airways managed to get a dominating position in the online market due to its innovation. The company was also a pioneer is offering one-stop services to small and middle-sized businesses, by personalizing their online experience.
In conclusion, it is necessary to mention that British Airways is a top player in the world airline market due to its well-balanced marketing and e-marketing strategy. By taking advantage of technological factors of the macro environment, the company managed to obtain a large share of the market and achieve success. It is very important for British Airways to analyze macro environment and update its strategies according to changes in political, economic, social, technological, environmental, and legal factors. British Airways is currently a leader when it comes to e-commerce and a pioneer of most existing tools.
It is crucial for the company to ensure that it remains a pioneer in the market and does not let competitors take the initiative. Cunningham Michael J. DoubleClick Here for British Airways. Greco Alan J. Journal Title: Review of Business. Volume: Issue: 1. Orr Bill Issue: External Environment Industry Analysis The goal of the industry analysis is to recognize the external environmental factors which have potential impact on the industry.
The first part gives an idea about the airline industry profile. Airline industry is affected by the economic growth, trade and political factors. The tense political situation like in the states Egypt, Cuba and the likes have affected tourism in the past and of course the most famous being on the 11th of September attacks which led to a drop. However, increasing global demand, supply, inflation, and taxes for oil spiked the price per gallon of jet fuel to nearly double the cost during the turn of the century. While many carriers failed to overcome such change, financially stable airlines were forced to boost fares, limit services, and implement additional fees for travelers. At the pinnacle of fuel costs in , American Airlines was the first major carrier in the United States to execute a checked baggage fee, with other carriers quick to follow.
Correspondingly, high fuel costs obliterated approximately half of domestic carriers across the United. Lufthansa Group, Company Potrait. Deutsche Lufthansa AG has typical Germany style management and supervisory structure. The Executive Board defines the strategic decisions. The strategic decisions revolve around four main objectives. Southwest Airlines is a major airline company that provides air transportation in the United States and nearby international markets.
In its 47th year of service, Southwest Airlines continues to provide exceptional customer service delivered by more than 55, employees topping million passengers annually. Southwest Airlines serves destinations in the United States and operates international flights to Mexico, Latin America, and the Caribbean. Although some of their business gets lost Dyncorp still manages to hire every year who all start at The total net income by was The operations, logistics and transportation are dealt internationally and the business administrator and IT are domestic but they do have domestic transportation also.
The aviation value chain The value chain shown below describes all the activities involved in air travel. Airports serve as a gateway to aviation and hence are a key link in the air transport value chain. They play a vital role in facilitating tourism and business travel and global supply chains as well. For inbound travelers, an airport contributes to their first impression of a city or country, and for outbound travel, particularly on short-haul journeys, passengers may spend as much, or even more, time at the airport as they do in the air.
By continuously using this low cost model, the company celebrated its 10th birthday in the year by carrying 2.
