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Strategy Analysis between British Airlines-商科essay代写

2017-05-11 | 来源:51due教员组 | 类别:Essay代写范文

本文是一篇商科essay代写范文:Strategy Analysis between British Airlines,供大家赏析学习。这篇论文讲述的是英国航空公司战略分析。英国是世界上最大的航空市场之一,历史悠久,市场成熟。英国航空公司和维珍航空公司是英国的两家巨型航空公司。两家航空公司都有自己的经营策略,以实现更好的发展。

Strategy Analysis between,商科essay,essay代写,英国代写,论文代写

The United Kingdom is one of the biggest aviation markets in the world with a long history and the mature market. British Airlines and Virgin Atlantic Airways are two giant airlines in the United Kingdom. Both airlines have their own operating strategies for better development. However, they also face challenges in the global aviation industry.

This essay is divided into six parts. The first part briefly introduces the two giant airlines. The second part analyzes the strategy of British Airlines and its potential challenges. The third part analyzes the strategy of Virgin Atlantic Airways and its potential challenges. The fourth part makes a comparison between the two airlines in the dimensions of environment and brand theories. The fifth part discusses the competition between the two airlines. The final part is a conclusion of the whole essay.

1.Introduction of British Airlines and Virgin Atlantic Airways

British Airways is the largest British airline. It is headquartered in London Heathrow Airport and defines London Heathrow Airport as a hub base. The history of British Airways can be dated back to 1924. It is the oldest airline in the United Kingdom. British Airways is one of the world's largest international air transportation companies and one of the world's seven major cargo airlines. British Airways always sticks to the excellent tradition of providing high quality services to passengers from various countries in the world. (Wikipedia, 2015)

Virgin Atlantic Airways is a British airline established in 1984, providing intercontinental air services. Virgin Atlantic Airways has Britain's second largest international airline. It is also headquartered in London Heathrow airport. Virgin Atlantic Airways is famous for its consistent high quality service and innovative ideas, which pay attention to enterprise development and sustainable innovation dynamics.

2.Strategy analysis of British Airlines

The strategy of British Airlines can be divided into six perspectives.

In the first place, British Airways has launched the framework of e-commerce. The supply chain is greatly strengthened by the addition of electronic purchasing. In addition to the aviation industry, the core competitiveness of BA is also used in the field of network risk investment.

In the second place, the key to success lies in the creation and development of motivation. BA and CISCO have jointly launched the eWoking system, which can increase the efficiency of daily operation.

In the third place, the Company provides an upgraded customer experience. They guarantee the exceed punctuality and baggage targets across the network, achieving record customer satisfaction scores. 

In the fourth place, the Company strengthens the competitive cost base. It continues to reduce the cost of Heathrow operations. A significant management voluntary severance program has reduced the number of the management. The Company also wants to use the fuel efficient aircraft.

In the fifth place, the Company has formulated a plan for growth like continuing to meet the needs of its customers and launching new routes.

In the sixth place, the Company takes related social responsibilities in reduction of carbon emissions, recycling waste and minimizing air and noise pollutions. 


Challenges for British Airlines

Due to the economic recession, the Company has suffered a great loss. In order to tackle the difficulties, British Airlines has revised the operations in five aspects: firstly, be the airline of choice for long haul premium customers; secondly, deliver an outstanding service for customers at every touch point; thirdly, grow the presence in key global cities; fourthly, building on a leading position in London; fifthly, meet the customers’ needs and improve margins through new revenue streams. (British Airlines, 2014) Through these measures, it is hoped that the Company can go through the difficulties.


3.Strategy analysis of Virgin Atlantic Airways

The strategy of Virgin Atlantic Airways contains four parts: differentiation strategy, cost leading strategy and international strategy.

In the first place, the Company has carried out differentiation strategy, which can be divided into three aspects.

Firstly, the Company focuses on the difference of service quality, providing customized products and services. The airline has canceled first class cabin and opened business class, economy class with different levels. Its business class can be comparable with the first-class cabin of British Airlines. In addition, its economy class has higher quality and lower price than other airlines’ economy class.

Secondly, the Company focuses on service innovation and differentiation. The Company has provided many new modes of entertainment on the aircraft. In addition to some basic services, the airline also provides additional value-added services by additional charges like massage, manicure and member clubs. On the aircraft, the Company has set up areas for games and a bar.

Thirdly, the Company is good at marketing differentiation, especially using the method of event marketing. Richard Branson, the Company’s CEO, is a dramatic leader and he has made several big events like driving a tank on the royal road, controlling a hot air balloon across the Atlantic and sending aircraft emergency shuttles to Iraq for British hostages during the Gulf War. Richard Branson is very good at using his own image. He has turned up in a lot of brand promotion activities. He always gives surprise to the public. The different ways of marketing of fun, innovation, rebellious corporate image have left a deep impression in people’s mind.

In the second place, the Company carries out cost leading strategy, which demonstrates in three aspects.

Firstly, most tickets of Virgin Atlantic Airways are tackled through the call center or the Internet and 99 percent of the tickets are electronic tickets, which is an important measure for cost saving. In the perspective of Virgin Atlantic Airways booking system, the cost of each passenger is one tenth of other large airlines. In the accounting department, only 3 people deal with the tickets, while large airlines need 50 to 60 headcount.

Secondly, Virgin Atlantic Airways also allows travelling agent companies to sell its tickets. Virgin Holidays, sister company of Virgin Atlantic Airways, has become British largest tour operators for the Caribbean schedule. For the off-season and tourism market, travelling companies have played an import role.

Thirdly, Virgin Atlantic Airways’ IT system and call center are often outsourced to companies in India and South Africa. Through this way, satisfied services are obtained with simplified procedures and low cost.

In the third place, the Company also focuses on the internationalization strategy. Virgin Atlantic Airways is Britain's second largest remote international airline. It does not operate on domestic routes and intra European routes and do not build the Spokes route network, mainly carrying out point-to-point remote routes. It aims at the London international aviation market and positions in this perspective.

In the fourth place, the Company has launched a unique brand strategy. In the situation of serious aviation market homogenization, the Company has built its own brand, attracting the target consumer groups. "Virgin" represents a kind of enterprise culture, life attitudes and brand image. It advocates free, rebellious and open life way. It also advocates freedom and extremely precious romance. Behavior art, event marketing and fun is people’s expression on Virgin Atlantic Airways.


Challenges for Virgin Atlantic Airways

One big challenge for the Company lies in the political policies. 

The British government has started to levy green taxes on all aircrafts’ arrival and departure. According to the policy, green taxes are undertaken by passengers. Virgin Atlantic Airways has announced that it will bear the tax for passengers, which increases the operating costs of the virgin. The airline cost leading strategy is facing a potential threat.

4.Comparison between the two airlines

British Airlines and Virgin Atlantic Airways are two largest airlines in the United Kingdom. Both airlines have similar industry environment and political environment. However, the two airlines also have some differences in market and brand strategies.


4.1 Similar industry environment analysis

For strategic environmental analysis, Michael Porter's Five Forces Model can be applied to carry out the analysis. According to Michael Porter's Five Forces Model, there are five forces in the industry: threat of potential entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes and industry rivalry. (ME Porter, 2009)

First and foremost, the threat of potential entrants is weak. For the civil aviation industry, the potential entrants don’t impose a serious threat on the existing enterprises. Aviation industry needs huge capital investments to support the operation. Aviation industry is a typical industry making use of scale economies to increase the industry. Pioneering enterprises tend to have other advantages in addition to the cost.

Secondly, suppliers’ bargaining power is strong. In the airline industry, Boeing and Airbus are the only suppliers of aircrafts. The industry concentration degree is relatively high, so bargaining power of the suppliers of aircraft is quite strong. In the process of negotiations with suppliers, the airlines are in a disadvantageous position.

Thirdly, passengers’ bargaining power is strong. Nowadays, aviation services of airlines are similar in the market. With the development of the Internet, passengers can obtain comprehensive and real-time information and make comparisons among different airlines.

Fourthly, threat of substitutes is weak. Threat of substitutes like trains and passenger vehicles depends on personal preferences, price, time and convenience. Both airlines are committed to the international long-distance routes, so threat of substitutes is relatively weak.

Fifthly, industry competition is strong. The aviation industry is a highly mature market and industry competition is very fierce. Due to the deregulation and a series of free agreements signed and entered into force, the number of enterprises in the industry is increased. At the same time, due to high exiting barriers in the aviation industry and sluggish economic situation, competition in the industry is becoming fiercer. In recent years, merger and reorganization in the aviation industry is further intensified competition. Therefore, both airlines face fierce competition from other airlines not only in the United Kingdom but also the international community.

In a nutshell, both airlines are in the same market and they encounter similar industry environment.


4.2 Similar macro environment analysis

For both airlines, they are in the same market in the United Kingdom and Europe, so they are facing similar macro environment analysis. PESTE analysis methodology can be applied in this dimension. PEST means the five elements in the aspects of politics, economy, society, technologies and environment. (Wikipedia, 2015)

In the first place, political environment is the same. Europe and America have signed Open Skies Agreement. Under the agreement, all airlines of the European Union and the United States that have flight routes across the Atlantic are free to choose any international airport in Europe and the United States as the starting point and the ending point of the route. The agreement for both airlines is a double-edged sword. It expands the international market for both airlines and the route of fights can be more effective. it not only improves efficiency, but also intensifies the competition for both airlines.

Secondly, both airlines are facing the identical economic environmental factors. In general, the global economic growth trend is upward, especially in developing countries such as the rapid growth of China. Both airlines can seize the opportunities to develop flight routes in the developing countries.

Thirdly, they also have to tackle the same social environment factors. The trend of the aging of the population shows that the average life expectancy of people in the United States has increased. Meanwhile, baby boom generation has come into old age. The trend has brought the development opportunities for airlines, because the retired population has more time to travel. The leisure tourists are the target groups of both airlines, which is a great opportunity for both airlines.

Fourthly, both airlines are encountering same scientific and technological factors. Contribution of science and technology of the civil aviation industry can roughly be attributed to three aspects of aviation safety, reduction of environmental pollution and improvement of the quality of services. Scientific and technological achievements related to the three aspects have emerged in an endless stream and constantly updated. The development of science and technology provides a more secure, environmentally friendly and high quality service environment for passengers. Enhancement of the level of science and technology can improve efficiency in the use of fuel and reduce operating costs.

Fifthly, both airlines lay emphasis on the environmental protection. The global aviation industry is facing big challenges from environmental problems. Sustainable development is one effective way to meet these challenges. Both airlines have put forward green policies to tackle the environment problems. British Airlines has issued the sustainability report to show its efforts on the environment problems. Virgin Atlantic Airways also lays emphasis on the environment with implementation of the green policies.


4.3 Different brand strategies

British Airlines is the oldest airline in the United Kingdom. It defines itself as service airline, which targets on middle and high-ended passengers. It focuses on the development of business class and first class. It continues to improve the content of services, setting a high-end image.

However, the establishment time of Virgin Atlantic Airways is short, but its individuality is quite clear. The company's overall positioning is the youth and has a young and energetic team flight fleet. The company is a medium-sized international airline, mainly focusing on intercontinental routes. The image is consistent with the group and it has made its Group President’s distinctive personality characteristics expose to the public.


5.Competition between the two airlines

The two airlines target different customer groups and they use different competition strategy. 

British Airways’ main customer base is located in the high-end travelers. These travelers are not sensitive about travel prices. It mainly markets business class and first class passengers and strives to become the first preferred airline for these customers. It launches frequent flight plans for these customers and a world alliance program.

On the contrary, Virgin Atlantic Airways carries out a mode of competition that is different from its competitors. Virgin Atlantic Airways shows vigor and youth, targeting customer positioning from 20 to 40 years old with certain economic ability like the middle class and white-collar staff who pursue fashion trend. The overall customer base location is slightly lower than that of British Airways, but has stability and sustainability. Meanwhile, Virgin Atlantic Airways lays emphasis on the development of economy class passengers, providing lower prices and rich entertainment to attract more passengers. The Company has set up a budget airline company in the United States.

Another distinctive competition method of Virgin Atlantic Airways is that it makes use of its CEO’s image to promote the Company. Richard Branson is very good at using his own image, attracting the attention from the public. However, British Airlines has not carried out this strategy, because it is more conservative than Virgin Atlantic Airways.


6.Conclusion

British Airlines and Virgin Atlantic Airways all have their unique strategy in accordance with the contemporary situation. They all focus on the needs of customers. However, both airlines all have their challenges that need to be solved.


英国航空公司和维珍大西洋航空公司都按照当代的形势,拥有独特的策略。他们都专注于客户的需求。但是,两家航空公司都面临着需要解决的挑战。以上essay代写范文由51due英国论文代写网整理提供仅供参考。

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