This is actually the best tool to analyse the exterior environment. In 1935, small uk air transport companies arose together to form british airways. Thus i would like to know how the ba can earn profit in marco environment and how it affect ba, which using pestle analysis, the tool that i learnt this week, to find out what the challenges are ba facing and the what factors have to be. British airways ba is based in waterside uk is a public limited governmental airline company. Pestle and swot analysis of virgin atlantic 20162017. Contents political factors economic factors social factors technological factors legal factors environmental factors. Started in 1984, it is currently the uks best carrier in terms of punctuality, quality and the speed of dealing with compensation claims morris 2016. British airways a swot and pestle analysis the impact of europe 2020 policy. As a premier global airline, british airways ba travels to 200 destinations across 145 airports, serving over 40 million people a year.
Whatsapp the macro environment will be described by the pestel analysis, which helps to analyze general, longterm market influences. Pest analysis on british airways essay 817 words bartleby. The report also illustrates the application of the major analytical strategic frameworks in business studies such as swot, porters five forces, value chain analysis and mckinsey 7s model on british airways. For assessing the eternal environment the pestle analysis tool can be used for effective results. The pest framework is used to carry out analysis of ritish airways external environment in terms of the political, economic, social and technological factors that are affecting its operations johnson et al. The sections covered in the essay include company overview, external and internal environmental analysis based on the. Figure 1 british airways porters five forces threat of substitute services for an airline is. Political factors are playing an increasingly central role in the aviation. British airways named consumer superbrand of the year 2014 british airways. It is owned by the international airlines group and operates a fleet of more than 300. In this pestel analysis of british airways, you will study some of the leading challenges and opportunities created by various political, economic, technological, legal and other forces in the field of aviation.
In 2003, ba launched a global customer relations initiative aimed at overhauling its technology infrastructure and service processes baggage, compensation, etc. The industry operates about 240 aircrafts, serving about 120 destinations. Pestel or pestle analysis, also known as pest analysis, is a tool for business analysis of political, economic, social, and technological factors. Latest revenues for the year ending 31 december 2016 were approximately.
Pestle analysis pestel analysis for merger of the ba and. Strategic analysis of british airways executive summary. The pest factor that has contributed to the airlines industry for many years. British airways pestel analysis researchmethodology.
Pestel analysis is essential for evaluating airline industrys environment and how it can. Pestle and swot analysis of british airways 20162017. Our strategic management experts are available 24x7 to provide best. The founder and the chairman of the company is naresh goyal. The analysis was given the name pestle in reference to t he acronym formed by the initials of the six categories of macroeconomic variables included in the model political, economic, socio. Value chain analysis of the british airways can be better understood with the help of some examples. Detailed pestel analysis of british airways political. Please note that our free summary reports contain the swot and pestle table contents only. Mar 07, 2020 in this pestel analysis of british airways, you will study some of the leading challenges and opportunities created by various political, economic, technological, legal and other forces in the field of aviation. In this case a swotpest analysis of british airways, an airline company is. British airways s macroeconomic policy 1431 words 6 pages. It is vital to improve the people process so that the brand image is rebuilt and more confidence is built in the stakeholders. Pestel analysis for merger of the ba and iberia introductions the study of the environmental variables using the pestel analysis was conducted to evaluate the points for the merger of the ba and iberia.
The airline was first founded in 1974 and was the result of the merger of four companies british overseas airways corporation, british european airways, cambrian airways and northeast airlines. It can also use value chain analysis to develop brand identity. Jun 19, 2016 british airways porters five forces analysis is an analytical framework developed by michael porter 19791. It has built a reliable distribution network that can reach the majority of its potential. Airlines group iag, the parent organization qatar airways, british airways, aer. Swot and pest analysis of british airways tourism essay. Jun 16, 2016 british airways report contains the full discussion of british airways pestel analysis.
The pest factor that has contributed to the airlines industry for many years, but. British airways pest analysis 739 words internet public. British airways plc, a british airtransport company, is branded as one of the largest airline in the world carrying approximately 36 million passengers a year. Economic a crucial factor which has implications for british airways is the state of the economic environment. It was established in 1971 in order to take over control of two. British airways plc ba founded in 1974, was in the control of government for thirteen years and went into privatization in 1987. One of the preconditions for the merger deal is getting appropriate confirmations. Its headquarters are established near heathrow airport in london.
Severe competition from middle eastern airlines opportunities threats 1. The swot analysis for british airways is given below. Thus, enabling the company to overcome any supply chain bottlenecks. Along with the internal environmental analysis it is also important for british airways to consider analyzing the external environment. By using value chain analysis, british airways can select and source premium quality raw material and develop customer loyalty on the basis of it. Business and business evironment all assignment experts. Business strategy of virgin atlantic airlines essay 1889 words 8 pages.
Pest analysis on british airways the four different environments are often referred to as pest and allow a pestanalysis to be conducted this. Conduct a detailed swot and pestle analysis of british airways to identify the. It provides as a basic analytical tool for knowing market drop or progress. Jet airways pestle analysis pestle analysis, which is sometimes referred as pest analysis, is a concept in marketing principles. British airways was founded in 1974 as a merger of four companies. British airways, threat of new entrants low threat capital requirement is high. British airways has flights to more than 300 destinations along with codeshare and franchise partners carrying close to 33 million passengers. The recession back in 2008 had a huge effect on all airlines and holiday operators due to its highincome elasticity. Pestel is only a starting point when analysing the macro business environment of firms since other frameworks such as porters five forces and bcg are also used in conjunction to assess how firms such as british airways can utilise core resouces and competencies so as to take advantage of opportunities while neutralising competition and rising threats. Pestle and swot analysis of british airways 20162017 123 writing. British airways is one of the leading airline companies in the uk.
Doc british airways strategic management ana thesus. British airways was plagued by pension issues for employees a few years back which had affected operations and customer relationships. The analysis of these factors affecting the decision is detailed as follows. Not only it has a long history but also a very progressive outlook and healthy bottomline. Easyjet, ryan air and the moderate to high cost airlines e. Apr 14, 2019 british airways is the uk s largest air hose in relation to the figure of finishs it covers worldwide and besides the big figure of airplanes that are owed by the company. The pestel analysis is a tool devised by harvard professor francis aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. Apart from scheduled services, the british airways is also engaged in the operation of international and domestic carriage of freight and mail, and the ancillary services datamonitor, 2008. The issue of security and air control have increased in antiterrorism and safety as a result of london bombing of july 2005 and the september 11 terrorist attack in the us in 2001 the telegraph, 2014. The framework distinguishes between five individual forces that shape the overall extent of competition in the industry and studies them. External environment analysis of british airways, macro environment analysis of british airways. S 1221552 company profile jet airways is the second largest indian airline in terms of market share and passengers carried.
British airways is the uks largest airline in relation to the number of destinations it covers worldwide and also the large number of aeroplanes that are owed by the company. British airways, threat of new entrants low threat capital requirement is. The macro environment will be described by the pestel analysis, which helps to analyze general, longterm. Nov 24, 20 from the bbc news on 8 th nov, showing british airway ba owner iag sees the profit rose nearly 8%. Pestle and swot analysis of virgin atlantic 20162017 123.
Jet airways pestle analysis pestle analysis, which is sometimes referred as pest. Swot analysis and pestle analysis of british airways. The pestle analysis for british airways is given below. Market analysis and marketing plan for british airways. The pest framework is used to carry out analysis of ritish airways external environment in terms of the political, economic, social and technological factors that. British airways have had to rely on the political and environment effects on the. Increasing competition in european market competition 1. British airways has an established identity in the field of civil aviation. Virgin atlantic is a british airline carrier that is coowned by richard bransons virgin group 51% and delta airlines 49%.
In 1987, british airways changed from being a state operated airline to a private airline. This has been the consequence post the analysis of the relative advantage of innovation, compatibility with the services of the airlines with. Requires subscription or fee pdf published 20190710 issue 2019. Introduction british airways also known as ba is one. British airways book flights, holidays, city breaks. Macro external environment for british airways business. British airways operates a second hub at gatwick airport and a third hub, served through its. Airline, price discrimination, supply and demand pages. Doc british airway stratagic management rk rakib academia. British airways a swot and pestle analysis the impact of. K and europe including the middle east, africa, south and north america, asia and the pacific.
Mar 19, 2021 british airways was founded in 1974 as a merger of four companies. It was established in 1971 in order to take over control of two stateowned air hoses, british overseas airways corporation boac and british european airways. A pest analysis including legal and environmental parameter is called a pestel analysis. Pestle analysis the british airways business environment can be. Pest analysis for airline industry highlights 4 important factors that have affected the viability and profitability of the global airline industry badly. It is currently owned by the international airlines group iag. This is an important step for eventually devising a strategy that can effectively manoeuvre the competition to maximize a firms chances of sustainability and. Pest analysis on british airways 810 words 123 help me. The pest factor that has contributed to the airlines.
Internal and external environment of british airways. The industry operates about 240 aircrafts, serving about 120 destinations throughout the u. It may be reasonable to state that the british airways are in their early adoption stage of the innovation and adoption curve fozer et al. A concise pest analysis for airline industry pestle analysis.
This section is available only in the complete report on purchase. Biman is operating in london dhakalondon route with emirates, british airways, qatar airways, singapore airlines, air india, jet airways, and gulf air as its competitors. Political political factors can influence an organizations. Get accurate solution as a free sample on swot and pestle analysis of british airways. Pest analysis is a strategic tool to learn about the organizations working environment and the factors that could affect it.
The airlines headquarters is located in london, its central hub is at heathrow airport, and the airline hosts a fleet size of 254. Pestle and swot analysis of british airways 20162017 123. Pestel is only a starting point when analysing the macro business environment of firms since other frameworks such as porters five forces and. In this case a swot pest analysis of british airways, an airline company is going to be carried out. Swot and pest analysis of british airways tourism essay term. Essay on pestle analysis of british airways 1921 words. British airways porters five forces analysis research. Pest analysis on british airways essay 817 words 4 pages.
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