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Marketing Mix for British Airways

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STRATEGY AND MARKETING MIX FOR BRITISH AIRWAYS

British Airways is relatively healthy from a financial standpoint, relative to other companies in the air transport industry, and it has positioned itself as a premium service provider. It has formed alliances with other carriers, and has already segmented its market successfully. The best strategy for the company is to follow the strategic plan it has put into place, and monitor that all of its activities--including its marketing--support that strategic focus.

When the last Concorde in the world ended its regular service in late 2003, carrying the British Airways logo, some in the air transport industry wondered if the retirement of the Concorde was symbolic of greater changes in the air transport industry in general--and of British Airways in particular. The industry has struggled in recent years with mergers, consolidation, lower fares and increased traffic on reduced fare airlines. Events of September 11, 2001 dampened demand, and the recent SARS outbreak added pressure to demand. British Airways has survived these difficulties better than many carriers, and certainly better than some well-known American carriers. This research considers the strategic position of British Airways and makes recommendations regarding the company's marketing mix that are appropriate given that position.

Understanding a company's strategic position is critical to understanding the appropriat

. . .
l of profitability. There are a number of opportunities facing British Airways, including the bankruptcy of United Airlines. British Airways is in a position to attract customers from United Airlines who used the American carrier for their trans-Atlantic business. In addition, British Airways has extended its global reach through ownership schemes and marketing arrangements with carriers such as American Airlines, Qantas, and Iberia. The emergence of the European Union as a formidable single market also opens up the opportunities to attract business travelers from the EU and the United States seeking to do business with the other ("Open Skies," 2003). Threats to British Airways come primarily from the downturn in the economy that is causing a rethinking of travel budgets among consumers and business travelers. Business and first class seats are the most lucrative for airlines, but air carries can spend considerable resources to add amenities--seats and technology--to attract customers. There is the possibility that air carriers will invest more than they are able to recover in these areas, particularly since technology can change quickly and those airlines with the latest technology are likely to attract more passengers. STRA
. . .

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Approximate Word count = 2514
Approximate Pages = 10 (250 words per page)

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