The question is :
Dynamic nature of marketing strategy is a vital issue for the survival of any business of organisation. Justify the above statement using any firm in the hospitality and tourism industry?
Group Members:
Monika Azhar Ibrahim Sebastian Blessing Adnan Manpreet Rinkesh Hiren Rizwan
Dynamic Nature of Marketing Startegy
[British Airways]
Definition of Dynamic Nature in Business
Business environment is dynamic in that it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market. ([Link])
About British Airways:
British Airways is a full service global airline, offering year-round low fares with an extensive global route network flying to and from centrally-located airports.
Mission Statement: To be undisputed leader in world travel , passionately committed on excellence and to highest level of customer service.
BA alludes to creating a global travel network of which airlines seem to be only a part.
PESTEL framework to Analyse External factors:
For success within the airline industry, an awareness of the external environment is essential. Here our aims is to highlight the position of the industry, in particular looking at competitors and assessing BAs capability to meet current and future challenges.
Political factor : Increased security due to past terrorist threats. Implication for BA: Sufficient security measures should be in place to ensure customer confidence and competitive advantage is maintained. Economic Factors :UK consumer spending sharply decline. Implication for BA : More intense compitition.
Social factors : Increasing Unemployment Implication for BA : Increased bargaining power as an employer. Technological Factors : online booking services and check-in is becoming increasingly used by the airline industry Implication for BA BA must ensure that they remain up to date with these technological advances whilst avoiding becoming overly reliant, as this may isolate certain consumer markets (i.e the elderly) who dont feel comfortable using such technology.
Environmental factors: Noise pollution controls, and energy consumption controls. Implication for BA : New legislation (e.g. Climate Change Bill) enforcing tighter environmental regulation may increase operational costs each year. Legal factors: Collusion and price fixing. Implication for BA : Restriction on mergers will have an impact on BAs proposed alliance with American Airlines.
SWOT framework to Analyse Internal factors
It is important that strategic development is reflective of BAs strengths and weaknesses relative to competitors and the opportunities and threats presented by its external environment.
Internal Strenghts : Brand Image Partnerships & Alliances Financial size and stability Terminal 5 Internal Weakness : Poor employee relations history Reliability and trust Innovation & change
External opportunities : Competitors forced exit Competitors failing on delivering reliability Emergence of new markets External threats : Environmental awareness Global economic crisis Lower cost competition
Porters five forces to analyse competition with others
The Five Forces tool will enable BA to make strategic decisions in order to increase profitability. 1. Competitive rivalry (high): Direct Competitive rivalry is fierce. 2. Power of Suppliers (high): Two aircraft manufacturers. 3. Power of Buyers (medium): Increased internet usage has amplified awareness and interaction of customers.
4. Threats of New entrance (low): Significant barriers to entry: such as the competitive environment, high regularity requirements and high capital cost requirements. 5. Threats of substitutes : There are few direct substitutes: Short haul flights: the Euro Star or a Ferry. Long haul flights: no notable substitutes
BA-Marketing Strategies
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GLOBAL: What we offer will appeal to customers across the globe. Wherever we operate, individuals and business travelers alike will want to fly with us whenever they can. PREMIUM : We will make sure all our customers enjoy a unique premium service whenever and wherever they come into contact with us. Our customers will recognize that the service we offer is worth paying that little bit more for. AIRLINE: We will remain focused on aviation moving people and cargo is our core business. We will develop new products and services to complement this. ([Link])
4 Improved environmental stance. Go above and beyond current environmental requirement
5 Renovation of brand image. Renovation and modernisation of brand image in an attempt to gain market share
6 Technological advancement. Introduction of internet access on flights to improve the over all quality of service.
7 Segment focus: Focusing on business class customers as the most profitable segment of the business
References
1. [Link] 2. [Link] h-airways)