heir physical presence (Rice, 2002).
There is also a high degree of rivalry in the market since airline travel is perceived as a commodity by many of the members of its target market. Competitors in this industry are eager to differentiate themselves--and justify higher prices--with technological innovations, or comfort, or increased routes. In addition, alliances have been formed--sometimes among companies that were once competitors--allowing each to sell seats on the other, or recognizing the other's frequent flyer miles ("US Approves," 2003).
British Airways has a strong market position--in 2002, it was the fifth largest airline in the world, and the only airline in the top five that was not based in the United States ("Trends," 2002).
British Airways has a relatively young fleet of aircraft with an average age of 7.5 years. This means that the company does not need to overcommit resources in order to renovate or replace aging planes. In addition, the company continues to expand its
...