The paper “ The Market Environment Analysis for Bmibaby Airlines in the UK, and Assessment of Its Competitive Position, PEST and the SWOT Analysis” is an engrossing example of a case study on marketing. Bmibaby is a British low-cost airline which is a subsidiary of the British midland international. The airline was established in 2002 and it is, however, able to differentiate itself in the existing market place through its advertisements, its website which acts as an interactive tool as well as the low priced fares. The market environment analysis for Bmibaby airlines in the U. KAfter the completion of the Bmibaby airlines rebranding program that ensured a successful and also a challenging market position for the airline, Bmibaby turned its eye towards the increment of its market challenge in the low-cost airlines.
The low-cost airline Go on the other hand announced its intention’ s to start flying on the airport of the east midlands as it will be acting as a catalyst for the Bmibaby to further accelerate its entry into the low-cost market. (The British midland international 2005) This will also help the company protect its local turf airport and also aggressively enter the fray of the booming airline sector.
The market segment in the airline industry is already saturated with the various key players in the industry catching the attention of customers who shop by the price alone primarily. Bmibaby Airlines has a big challenge in giving these customers what they really want in a relevant yet different way. Since this activity would also be understood in liaison with the newly rebranded BMI then any further preposition should positively infuse the master brand and not in any way contradict it.
If on the other hand the BMI master brand was built on brand values such as charm, speed and also style then the low-cost operations should be the aversion of the economy that offers charm and speed which would be basic but not full of character. An assessment of its competitive position The BMI baby airline has been expanding rapidly in the European market especially since most of the major traditional airlines have been posted with heavy losses which have led to the recent downturn in their demand for air travel. The Bmibaby positioning has a very unique value since most of its competitive position relies heavily on the price which then results in a marketplace with very little real personality.
The airline has further exceeded all its targets and it is now focusing on expanding its network in Europe. Bmibaby airline has achieved a growth rate of above 26% per annum and this has further led to its expansion and it has also made it remain profitable in the recent past. The airline, however, is facing some current challenges and also some future opportunities that include the extent to which it will sustain its low-cost advantage.
The big airlines have been very successful in their leisure destinations on low-cost services which have previously lacked reasonably priced air services. (Bmi 2006) It has also captured a substantial market share by diverting the demand from the charters especially on the travelers who are independent and favor more flexible booking and also schedule.