Bibliographies26Appendices28Table 1: Estimated and projected population of the United Kingdom and constituent countries, 2010 to 203530Definition of Key WordsStrategy: In this context, strategy is to be taken as the nature and also the direction a company can take in light of the choices which are at its dispose. Therefore, from this definition of strategy, strategic responses can be inferred to mean the responses that an organization takes in achieving its strategies and hence strategic responses. Nature: refers to the very essence of the company, for instance BA is an airline and hence in the airline industry.
Direction: refers to where the organization in question (BA) is headed and hence strategic responses. Pestle Analysis: It refers to a methodology whereby the macro environment is analysed. It will be used to analyze the political, economic, sociological, technological, legal and environmental forces affecting the airline industry under which BA operates and to which this forces impacts on the strategic making of BA. Abstract The airline industry is in the service industry which experiences very volatile changes all over the world and hence companies have to keep up with the changes as well as plan for future changes and challenges in the service industry of airlines through strategic making.
Strategy making is an important aspect in the organization in light of the organization succeeding in the environment it is operating in. Though the airline industry is changing like any other typical service industry, it does not mean that the airline industry can afford to lag behind or sleep in terms of making strategies suitable for the now markets tastes and the then (future) markets tastes.
Therefore the paper critically reviews the corporate strategy of British Airways (BA), the company’s competitive strategies through critical appraisal of the company’s strategy, industry and company analysis. However, an overall industry analysis is undertaken before any analysis of the company’s strategy through analysis of a three dichotomies impact in the company and in the context of three paradoxes in the company and the perspectives which are applicable to the paradoxes. Industry Analysis: OverviewBA is among the largest airlines in the world which operate the scheduled premium international airlines. The company is a privately owned and a part of the International Airlines Group which was later formed in 2011(IATA 2012).
In the global arena, the presence of BA is felt through the company being 5th largest airline in terms of the passengers who are flown using the BA airline (See; Figure 1, position of BA in the global arena). It majorly bases its operations in Europe and US. Analysis of Trends in the International Airline IndustryPorter’s Five forces AnalysisPorters five forces analysis can be used to determine the strategy a firm can use in limiting the power of industry forces on its operations and thus gain competitive advantage over rivals (Porter 2008). Diagram illustrating a simplified 5 Forces Model By Micheal Porter; adopted from http: //www. brs-inc. com/porter. asp, Analysis distinct to BA as provided below: Bargaining Power of Suppliers