British Airways (BA) is among the top airways in the world that globally operates over 183 destinations.
It is one of the oldest airline service provider of the world, founded on 31 st March 1974. In terms of fleet size of 273, it is considered to the largest and in terms of carrier, it is the second largest after easyJet in UK. In 2016, the total revenue generated by BA was £11,443million, which makes it one of the best profit earning companies of United Kingdom (BritishAirways, 2017).
This present report renders the strategic marketing plan for BA. For that purpose, this study furnishes the marketing audit namely porter’s five force model, SWOT analysis and PESTLE analysis. It comprises of SMART objective, Marketing Mix, STP and CSR activities etc. in order to present its understanding and recommended the area that needs improvement. This report has been developed via all the information present across books, journal articles and online reports etc.
1.The Marketing Audit
Current Situation: After 2008 recession, the airlines industry was badly hit, losing a large number of potential customers, as the overall travel and tourism industry showed a decline in the growth and profit.
With the beginning of 2009, the industry is growing with a rate of approximately 8% per year. With the growing trends of foreign holidays, the airlines industry is among the busiest industries of the market
2. Competition in the industry: In the long haul, all most all the companies are prizing the same based as
But there is an intense competition in domestic market because of cost leadership and services at a lower prize (Statista, 2017).
3. Potential of new entrants into the industry: With the expansion of many Asian countries in the Aviation industry, there is a huge competition not only in the internal market but also in domestic market.
Emirates and Air Asia etc. are potential service provider due to their high demand in international market.
BA is highly dependent on other companies for obtaining Boeing, Airbuses, Fuel and Catering. As these are the essential and elementary need in the aviation industry, hence they always have a cost advantage and a high bargaining power.