The paper "Managers’ Role in Implementing Organizational Change" is a great example of a Marketing Case Study. External analysis has an effect on the future prospects of the business as organizations look towards including it in their planning process. The external environment impacts all players in the industry in a similar way and organizations that are able to find a solution and develop a strategy to counter the external environment are able to develop their business model (Chew, Cheng, & Petrovic-Lazarevic, 2006). British Airlines that performs in the airline industry faces similar competition from other players and is also influenced by the external environment.
This makes it imperative that British Airways look towards identifying a strategy that will reduce the impact of the external environment and will provide a platform through which they are able to grow and perform in a competitive environment. The external analysis for British Airways is being looked through the Porter Five Force Model which will help to develop a strategy to combat the external environment and ensure growth for the organization (Cateora, Mary & Graham, 2009). The five force model for British Airways is as follows Rivalry among Sellers The airline industry faces stiff competition from different airline operators operating in the industry.
This has intensified the degree of competition for British Airways. The growth in the volume of passengers has been matched by more players entering the industry. This has resulted in airlines sharing the market share with others in the industry and has made it difficult to sustain competition. British Airways further faces pressure as other airlines are outperforming the airlines in the market. The degree of competition is stiff especially after considering the degree of competition from the Chinese airlines.
This has made it difficult for the airline player to be able to garner the same market. The matter gets worse when the product and services offered by players are looked into. Since all airline looks towards using Just in Time technology this has resulted in the airlines to suffer. British Airlines is facing stiff competition due to the fact that all airlines are looking to lure customers by offering competitive rates and looking towards delivering high-quality service. Also, the manner in which the price of oil has gone up has intensified competition as it has translated into different players looking to attract customers based on it.
This has made British Airlines look towards attracting customers by changing their airlines and having more fleet of Boeing so that they are able to attract more customers by offering better facilities. The degree of competition has further grown due to the policies of the government. The government has followed a policy of open economy which has resulted in more airlines entering the industry.
This policy of the government has made foreign players like Swiss Airlines and others to ensure the industry. This has resulted in competition between the players to be very stiff thereby resulting in the degree of competition to intensify and has resulted in the degree of competition to be very high. Potential Threat of New Entrant The airline industry has a very high entry cost due to the heavy cost associated with the establishment of the industry. Since the industry requires a heavy expenditure on airlines and other equipment this raises the cost of establishment for entering into the airline industry.
This has made it difficult for the new airline to enter the industry.
Chew, M.M.M., Cheng, J.S.L. & S. Petrovic-Lazarevic, 2006. Managers’ Role in Implementing Organizational Change, Journal of Global Business and Technology, Vol. 2, No. 1
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