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Porters five forces for British Airways
Transcript of Porters five forces for British Airways
routes; service; comfort; quality Low cost airlines; price Aviation fuel;
whichever supplier Planes; companies
are desperate to
secure long term
orders Difficult to enter globally
Short haul is easier
Will short haul companies
enter long haul market? Refers to alternatives
to air travel
Long haul; no real alternatives
Short haul; train; coach;
ferry; road Conclusion; Buyers are less powerful than for other companies especially if you have a specific destination to travel to. Threats of subsitutes and new entrants is minimal however
supplier power is significant; the company is subject to changing oil prices and landing fees.
Where should it concentrate it's efforts? Reduce competitior power by differentiating its products by
focusing on customer relationship management to build loyalty. Some degree of bargaining power
e.g go to another airlines