Strategic Analysis British Airways


Managing the Strategic Dimension


Table of content:

1.   Introduction 3
  1.1. Product and presence 3
  1.2. Strategic issues 3
2.   Dynamic environment 4
  2.1. Macro environment 4
  2.2. Industry environment 8
  2.3. Key success factors 10
3.   Strategic capabilities 11
  3.1. Resource based view (RBV) 11
  3.2. Assessment of company performance     13
  3.3. Value chain 17
  3.4. Distinctive Capabilities 19
4.   Strategic options       19
  4.1. Current options 19
  4.2. Recommendations for change in strategy     22
  4.3. Stakeholder analysis 22
  4.4. Long term, Medium term and short term recommendations 24
5.   Conclusion 24
6.   Personal reflection 25
7. References 27

Executive summary:
British Airways (BA) who proclaim themselves as the world’s favourite airlines are in a turmoil since 2008. Global economic meltdown is the main reason behind this. Troubled relations between the management and the labour union have further added to the worries of the company.
This report analyses the main issues faced by British Airways. It does an analysis on the dynamic environment of the industry it operates in. It is evident from the analysis that BA no longer has the dominance it had in the market. On one hand the low frill carriers are encroaching on budget travellers and on the other luxury airlines such as Virgin are attracting the premium customers. It also analyses the strategic capabilities of the company. Through these analyses it identifies the Keys success factors of BA, which are attracting customers, managing employees and managing its resources.
This report subsequently analyses the strategic capabilities by using the RBV and value chain. It identifies the distinctive capabilities in terms of architecture, reputation and ability to innovate.
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