Business Strategy of British Airways

According to the Annual Report, 2009, the main strategic intent of the BA this year is to become the worlds leading global premium airline. A few main strategies of British Airways are determine firstly, BA want to ensure that customers receive unique premium utility whenever they fly with BA and no matter where they are, for example, they would like to improve the terminal figure 5s facilities and early(a) lounges in different airports. Secondly, new produced get out be launched, such as new aircraft, upgrade long puffs flight business class seats and redesign first class cabin. Lastly, BA wants to work closely with BAA in revisal to improve baggage and punctuality at Heathrow Airport and to keep up their good write up among customer, and continue being the leading airline in London (BA Annual Report, 2009).British Airway External Environment abridgment Porters Five Forces In order to extradite a well planned development of organisation future strategy, it is crucial to depth psychology the competitions within the attention, which may be threaten to the business. Porter (1980) developed a framework and proposed five 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 accompaniment products the power of buyers or customers the power of supplier and rivalry among businesses in the industry (Johnson, Scholes, Whittington, 2008). Rivalry among competitorsCompetitive RivalryBA is facing a rattling high competitive rivalry, as recent years, higher competition among the piffling 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 about used the same models of aircrafts. Also the government has a strict influence on the frequencies and the timing of the flight slot, and also s trict pricing policy. Therefore, reputation of the airlines becomes more important for the customers to be loyal.