Analysis on British Airways Essay Example | Topics and Well Written Essays - 1000 words

Analysis on British Airways - Essay Example Political factors is another crucial issue that is considered by the company to ensure the country has a stable government as political arena usually has a great influence on consumer’s spending power and business regulation. Some of the political factors British Airways consider are the stability of the government, the influence of the government on taxation and position of the government on the marketing ethics. Since there are other competitors in the air transport industry, British Airways has taken into consideration that their customers have a high bargaining power. Due to this reason, they ensure that the fare rates are friendly as their customers can always switch to purchase the substitute services from other airline companies. However, due to the high capital required to start an airline, British Airways is not under a very severe threat as compared to other business ventures that would require low capital to be started. On the other hand, the organization has to ens ure it spends heavily on advertising since there are a number of other companies offering the same services of air transport. For this case, it has to keep on advertising and offering competitive fare rates and other promotional activities to guarantee them that their services will continue prevailing in the market. Another factor that has guaranteed the services of British Airways that they will continue to prevail in the world market in their product services. They have ensured that the services are quality.... Since there are other competitors in the air transport industry, British airways has taken into consideration that their customers have a high bargaining power. Due to this reason they ensure that the fare rates are friendly as their customers can always switch to purchase the substitute services from other airline companies. However, due to the high capital required to start an airline, British airways is not under a very severe threat as compared to other business ventures that would require low capital to be started. On the other hand, the organization has to ensure it spends heavily on advertising since there are a number of other companies offering the same services of air transport. For this case, it has to keep on advertising and offering competitive fare rates and other promotion activities to guarantee them that their services will continue prevailing in the market. 1 Another factor that has guaranteed the services of British Airways that they will continue to prevail in the world market in their product services. They have ensure that they services are quality and their guarantee safety for their passengers. Being on of the oldest airline in the world, it has a brand name that has increased their goodwill in the market. British Airways do not operate on fixed rates on their fares through the years and for this case, they usually have seasonal pricing whereby they charge more during the peak season and low rates during low seasons. They also ensure that they charge reduced rates for customers who pay a return ticket unlike if one pays for one ways ticket and another one when returning which is expensive. 2 British Airways has ensured that their services are within the reach of their clients since they