Submitted by: Submitted by kunald92
Views: 2030
Words: 614
Pages: 3
Category: Business and Industry
Date Submitted: 12/30/2011 11:39 AM
Porters Five Forces for british airways
Industry Competitors and Extent of Rivalry
As BA has merged with another organisation forming an alliance, which makes it a strong organisation over its competitors but BA is facing a very high competitive rivalry, as recent years, higher competition among the short haul flights, budget airline such as Easy jet and Ryan air have been very popular, the old established airlines such as Virgin Atlantic and Cathy Pacific have also been in a high market competition, they almost used the same models of aircrafts. Also the government has a strict control on the frequencies and the timing of the flight slot.
New Entrants
For new entrants to enter the market they will be faced with a lot of competition, as there are many airlines which have gained customer loyalty as they have given customer satisfaction so the only way in which they can compete is by lower prices for flights, but for a new entrant to enter the market they would need a huge amount of money to finance their business as fuel rises and airport fees but what they can do it rent their planes from other organisations which will allow them to save costs and also save money on maintaining the planes, also they can offer lower prices to customers which will bring in more competition to the more established flight companies.
Buyers
For buyers BA offer rewards with customers who buy flights, they remember what customers have purchased with them that when they next use British Airways service that they give upgraded seats or slightly cheaper fairs, also BA have an exclusive club which can be segregated into different classes allowing anyone to join the club so its not just for exclusive people. Since there is a lot of competition within the market BA has to think how can it differentiate itself from its competitors and so with the alliance this allows it to give its customers satisfaction of allowing them to travel to destinations, which other airlines may not...