Business Strategy of British Airways

According to the Annual Report, 2009, the main strategic intent of the BA this grade is to become the worlds leading global premium respiratory tract. A few main strategies of British Airways are identified firstly, BA exigency to ensure that customers receive unique premium service whenever they fly with BA and no matter where they are, for example, they would like to improve the Terminal 5s facilities and new(prenominal) lounges in different airports. Secondly, new produced will be launched, such as new aircraft, upgrade long hauls flight business word form seats and redesign First class cabin. Lastly, BA wants to work closely with BAA in order to improve baggage and punctuality at Heathrow airdrome and to keep up their good reputation among customer, and continue being the leading airline in London (BA Annual Report, 2009).British Airway External surroundings Analysis Porters Five Forces In order to have a well planned development of organisation future strategy, it is cru cial to compend the competitions within the industry, which may be threaten to the business. Porter (1980) developed a framework and proposed five-spot forces that may affect the degree of competition with other competitors. These five forces are the threat of new entrants to the industry the threat of substitute products the power of buyers or customers the power of supplier and rivalry among businesses in the industry (Johnson, Scholes, Whittington, 2008). Rivalry among competitors combative RivalryBA is facing a very lofty competitive rivalry, as recent years, higher competition among the short haul flights, budget airline such as Easyjet and Ryanair have been very popular, the old- established airlines such as Virgin Atlantic and Cathy Pacific have also been in a high market competition, according to Shaw (2004), they almost used the same models of aircrafts. Also the government has a relentless control on the frequencies and the timing of the flight slot, and also strict pr icing policy. Therefore, reputation of the airlines becomes more important for the customers to be loyal.