British Airways Strategic Analysis

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The significance of strategic management in an organization is highly challenging and requires sustainable resources to formulate and implement. Rapid and intense change in today’s business environment has reshaped the fundamentals of strategic decision-making. The strategic direction of an airline must encompass a successful sustainable business strategy that enables the airline to compete with an advantage. To achieve this there must be some elements in the strategy that can attract buyers to their products and services, and thus have a lasting preference for using this company instead of its competitors.

BA’s core business differentiation is to provide high quality of service and improve standards in its passenger business. This is most notable in its first class passenger service.

The key questions to ask in determining a strategic direction of the company is to include where do we want to be in the future and how to get there? Does our quality of service match our price and customers? In order to answer these questions there must be a clear cut line of communication, a specific type of culture in place to shape and create a standardized level of quality service, and develop mutual relationships among employees that encourages innovative ideas so the company can attain strong customer approval and high quality service.

In 2011, British Airways most recent strategic directional change came from the multi-national merger with Iberia Airlines and the creation of sixth largest airline group in the world. Due to this successful merger with Iberia and further acquisition plans of other airlines through its parent company, British Airways future strategic direction looks promising. BA’s Global Premium Airline strategy is based on providing the customers with a premium value of service at the best price. BA’s merger with Iberia Airlineshas proven to be a successful strategy to reshape its image and customer service value. It is in BA’s best interest to continue on their acquisition plans because of two main reasons. Firstly, British Airways has not only proven to be a market leader, they have shown that their service qualities have improved due to acquiring other airlines and combining them into their business and enlarging their network scope. Secondly, the revenue generated from increasing their customer market base by acquiring other airlines has shown an increase in revenue stream throughout their network that can be swiftly invested in new products and services. The acquisition strategy is most effective when it comes to the business market segment.

In conclusion, British Airways strategic direction and intent for the future is of a view that the airline can achieve its premium service quality regardless of the barriers the airline has faced throughout the past several years. However, its future strategy can easily be achieved with IAG. All factors considered, BA can and will have a brighter future if their management can successfully implement their new strategic goals, objectives and effectively utilize their new global asset IAG to drive their business through any future unforeseen economic crisis or environmental uncertainties.