ipl-logo

British Airways Pest Analysis

739 Words3 Pages

Economic
A crucial factor which has implications for British Airways is the state of the economic environment. The recession back in 2008 had a huge effect on all airlines and holiday operators due to its high-income elasticity. "The recession in 2008 and 2009 represented the first time that passenger numbers had fallen for two successive years, CAA figures showed" (News.bbc.co.uk, 2010).
One major economic factor is the value of the pound, as British Airways is one of the only airlines flying to destinations across all 6 continents, the value of money and the perceived financial benefits of customers flying to these different countries has an effect on British Airways. Since the Brexit vote, the value of the pound has fallen increasing prices …show more content…

"In recent years the falling price in fuel has meant a rise in profits for airlines. International Airlines Group, the owner of British Airways, reported a 65 percent jump in annual profits after a bumper year of strong demand and low fuel costs" (Powley, T. (2016). This reduction in fuel price has benefited airlines profit margins because airline fares haven't been reduced, this has led to customers becoming disgruntled as they are still being charged a high price when it's costing the airline less to fly their planes. "The reality is airlines don't price their flights based on their cost. In the short term, they price it based on demand. Unless demand changes, just because they're paying less [for fuel], they're not going to pass those savings on unless they have to" (Carlson, …show more content…

As British Airways have marketed itself from low price economy up to first class – higher priced tickets they have been able to reach a larger variety of people traveling with diverse needs. "The Economy pricing strategy is for people who want low priced tickets. The medium-value pricing strategy is for people who require some of the fringe benefits and the Premium pricing strategy is for people who like to travel with all the high-class benefits provided by the airlines" (Bhasin). By offering many different onboard classes, BA appeal to all different social classes and with hundreds of destinations on offer they aren't leaving anyone

Show More
Related
1422 Words | 6 Pages

Adewunmi Felicia Adebanjo Principles of Genetics Lab report The Fruit Flies: A Model Organism to Test for Genetic Equilibrium. October 12th, 2017 Abstract The traits studied in this lab are the presence or absence of wings, and eye color.

Read More
1430 Words | 6 Pages

Kaitlin Fair Dr. Andrew Genetics- Bio 222 Drosophilia Melanogaster and their sex-linked trait: eye color Introduction(1-2 pages): Drosophila Melangoaster, fruit flies, are a model organism for sex linked traits such as eye color. This species reproduces efficiently. Males can mate with multiple females throughout their life, while a female fly stores the sperm she receives forever. Because a female fly is only able to reproduce once in her lifetime, when experimenting with flies it is typical to put a larger amount of females in a vial than males.

Read More
688 Words | 3 Pages

In some cases they are even forced to lay off workers. In April 2015, Oklahoma oil and gas jobs already have declined more than 10 percent from the last year (Wilkerson). This demonstrates one of the ten principles of economics, the trade-off. When gas prices are lowered, the population is happy because they are saving money; however, this is putting some people at risk of losing their

Read More
2674 Words | 11 Pages

1 Introduction Argos is an UK based home retail group. It is one of the largest companies of UK that have been running around 737 companies and they have around 340 million visitors of their websites as well. According to a study it has been found that they are covering about 90% of the population of United Kingdom within their 10miles of an Argos branch. As one of the largest company in UK Argos has a decent growth rate of 20%. They have more than 130million customer and around two third of the population have taken under their catalog.

Read More
2186 Words | 9 Pages

The inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.

Read More
1727 Words | 7 Pages

Abstract: Drosophila Melanogaster are fruit flies. Previous research has shown that fruit flies are the most logical organism to use to study genetics. This is most likely because they reproduce and regenerate quickly and they are easy and relatively cheap to handle. In our experiment, we observed flies (F2) with unknown phenotypes that we had to discover.

Read More
613 Words | 3 Pages

Have you ever been to the gas station and thought to yourself "why are these gas prices so high"? You may have even thought about cutting back some of your driving. When gas goes up it seems like the whole world may have turned their backs on you. In fact, Americans have an unquenchable thirst for gasoline. You could look at the amount of traffic on roads and highways, and you'll see that if a severe gas shortage were to happen it would cripple the United States into shambles.

Read More
1034 Words | 5 Pages

United Airlines is the second largest air career in the world. It was established in 1927 from the merger of 4 companies. In this essay, Q1 will discuss marketing environment of UAL and how changes in the environment can impact it; Q2 will define segmentation, market segment, targeting and positioning and how UAL uses to segment its market in order to grow then in Q3 SWOT and its components will be defined and applied on UAL. Q (1.a): Marketing environment refers to “The actors and forces outside the marketing department that affect marketing management’s ability to build and maintain successful relationships with target customers” (Kotler, 2011). And it consists of Micro environment and Macro environment.

Read More
1384 Words | 6 Pages

Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to

Read More
885 Words | 4 Pages

Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the

Read More
1466 Words | 6 Pages

1.INTRODUCTION OF COMPANY My PESTEL analysis for this piece of writing is based on the famous international lingerie company, Victoria Secret. Victoria Secret was founded in 1977 by Roy Raymond, and his wife. Roy Raymond’s interest in a lingerie line was sparked by his embarrassment when purchasing lingerie for his wife. It was then that he studied the market before deciding to go into business, opening their very first store in Palo Alto, California. His vision then, was to have a store that would make everyone, especially men, comfortable shopping for lingerie.

Read More
901 Words | 4 Pages

Introduction Forever 21 is a clothing brand that is based in many countries. Most people would be very familiar with the brand as it caters to them in terms of a fashion retailer. The country that will be in this report would be in Singapore and the purpose of the report is to perform an environmental analysis on a company. The structure would be an introduction, followed by company background, country background, PESTEL analysis, porter’s 5 forces, strategic recommendations and conclusion.

Read More
1402 Words | 6 Pages

Another socio-cultural factor is the fear of terrorist attacks. Example would be the recent ISIS attacks in France, Russia etc. With terrorist bombing, airline companies are affected by the number of passengers traveling overseas. This could cause a drastic change to Rolls Royce’s income. Urban countries that are affected by overcrowding of air-craft are asking for larger aircraft as larger aircrafts are more powerful.

Read More
967 Words | 4 Pages

Income Level Caribbean Airlines develop pricing strategies for their services; the airline would consider the income levels of their target markers. Salary, or income level, is a good example of demographic segmentation used to introduce the airline air transportation services. For example, the airline would create packages accordingly to suit their customers pocket; some can only afford economy seating and would still like to enjoy the airline perks of meals and entertainment. These prices would be created for two types of customers, those who cannot afford the high end accommodation and those who can.

Read More
1027 Words | 5 Pages

Quality vacationers: These customers treat the travel as a part of their holiday experience and therefore they fly with carriers that provide extremely superior services. Frugal flyers: These types of customers tend to seek out the lowest-cost carriers for economic reasons, but still expect their flight experience to be a good

Read More

More about British Airways Pest Analysis

Related Topics

Open Document