I t then displays a summary of the customer’s next flight, the flight number, route, departure time, flight status, a countdown to the departure time and the weather at the destination. also introduced Apple Pay to make it easier for customers to purchase flights, holidays and experiences with us, and celebrated five years of mobile boarding passes. P rice-basedThe introduction of IAG Global Business Services («IAG GBS») to provide group IT, finance and procurement services will enable BA to reduce its central costs.
IAG GBS will also enable BA to achieve improved terms with suppliers by standardizing certain product specifications across the group such as aircraft, seats and ground handling. As a result, BA follows the hybrid strategy by setting the low price, shifting from premium class, implementing new attributes to the end-product and differentiating by building a strong brand image. T hey simultaneously achieve differentiation and a price lower than competitors.
The company shows the lack of focus by the presence on different markets (in terms of price, distance, customers etc.). They focus on excellence in everything despite of focusing on the particular market.
4.2. Corporate strategyProduct/market diversityBA operates on the long and short haul markets, optimizing the resource capabilities. V alue creation and the corporate parentBA’s brand has significant commercial value. E rosion of the brand, through either a single event or series of events, may adversely impact the Company’s leadership position with customers and could ultimately affect future revenue and profitability. T he Group regularly monitors customer satisfaction through the global customer survey, alongside ongoing research and development of the BA product, in order to mitigate this risk. BA.
allocates substantial resources to safety, operational integrity, on-board product and new aircraft to maintain its leadership position. Corporate parenting rationalesThe BA Board consider significant control matters raised by management and both the internal and external auditors, and report its findings to the IAG Audit Committee. Where weaknesses are identified, the BA Board ensures that management take appropriate action. The company is following the strategy of related diversification on the base of horizontal integration (launching cargo, investing in new fuel R&D, making M&A to benefit from learning curve and level off the risk).
4.3. Strategies suggested for future/EvaluationIn the report BA mentioned following strategies: Grow the lead in London and get stronger in shorthaulGrow the revenue with commercial insights and partnershipsMake the costs competitiveInvest in the product where it matters mostUse digital technology to transform the businessSet the standard for safe, responsible aviationThese goals are the parts of «protect and build» strategy. The market for such a product is extremely competitive while growth in the market is easily achievable as customers who are spoilt for choice are increasingly aware of the different advantages that different airlines provide. This strategy should be assessed by success criteria. Suitability This criterion includes the importance of bearing in mind strategical position of the company before setting the new one or prolonging the previous. T he «Protect and build» strategy respond to the requirements. M oreover, in terms of Brexit and Heathrow expansion this strategy illuminate the excess political risks. AcceptabilityBAstrategy works when they compete in long haul flight as compared to short haul flight. In this deep recession, businesses are shutting so they should think deeply about cost differentiation ratio. The benefits should also be sustainable through strong brand image and preference. FeasibilityBA has kept big competition in long haul market i.e. Virgin and other airlines, so they are looking deeply in segmentation development; however, they have strong brand reputation and their capacity. S o management uses both to build BA success.
BA strategy is achievable through resource and employee performance as we know that passenger falling ratio, cost ratio & strike action of employees make difficult for BA to achieve best goal. 4.
4. Implementation Modes/Techniques and Final suggestionsIn order to achieve the low prices (as a part of the strategy) the following actions should be considered: Operate with lower marginsDevelop a unique cost structureCreate efficiency in organizational capabilitiesFocus on market segments with low expectationsIn terms of market penetration, BA can actually gain market share through renovation and modernization of business approaches and the brand image as a whole. A t the same time, improving environmental stance by actually going beyond minimal requirements in environmental conservation to actually increase the measures will also drive market share. B y placing segment focus strategies, BA can derive from the fact that profit margins from business class passengers are the highest for the company and the fact the services that business class passengers require cannot be replicated by budget carriers makes it even more possible. ConclusionConclusively, from the SWOT and resources analysis, BA should give priority in implementing the strategy of using their strengths to gain in opportunities. A s identified in the PESTEL analysis, environmental issues are becoming increasingly important.
T he strategic management improvements are to be implemented into the corporate level structure, business level structure and functional level structure. N owadays, diversification and market development as a part of hybrid strategy are formed together for BA. T he company is also diversifying into substitute services such as ferries or cruise with the same level of quality that is recognisable from the BA brand name. A.
t the same time, increasing the number of scheduled flights with primary focus on large Asian economies such as China and India increase the service offering ranges. T he future strategy is formulated as «protect and build». The main attention should be served to clients and employees satisfaction with a strong concern on the safety policy. D ue to the recent political changes BA gained some advantages such as the lowest price to travel comparing with foreign airlines and disadvantages as unstable external environment. S o the above mentioned strategy will embrace these features allowing BA to remain the market share. BibliographyAnnual Reports /International Airlines Group. Available at:
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