L - Assignment

Introduction:
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a

SWOT Analysis is a technique for assessing these four aspects of the business.
• Strengths:
Strengths describe what an organization excels at and what separates it
from the competition
• Weaknesses:
Weaknesses stop an organization from performing at its optimum level.
They are areas where the business needs to improve to remain competitive
• Opportunities:
Opportunities refer to favorable external factors that could give an
organization a competitive advantage.
• Threats:
Threats refer to factors that have the potential to harm an organization.
The Company which I took for the study is British Airways. The airway industry
has been a particularly interesting market to study from epically since the
pandemic has taken place.
STRENGTH:
1. Safety
The number of safety incidents and accidents has fortunately been very low
for the airline. There have been three hull-loss incidents, two hijacking
attempts, and only one fatal accident ever since the airline’s inception in
1974.
Thus, British Airways is highly reputed for safety and has consistently been
ranked within the top 20 safest airlines worldwide.
2. Sustainability
British Airways has been putting a lot of strategic focus on becoming a

sustainable brand. They have been putting money into important focus
areas such as expanding their international network and improving
technology and the overall experience for both customers and employees.
3. Technological Strengths
The company has picked up its pace by investing in the digitization of all
operational areas. British Airways has managed to grow its operational
efficiency because of the focus it had placed on technological
advancement.
4. Brand Name
British Airways has established a highly positive brand image in the UK

market by emphasizing on focus areas such as technology, fleet efficiency
and customer experience. Not only do they enjoy a strong position in the
market
5. International Routes
Apart from its place in the local market, British Airways flies many planes
on international routes as well. The company’s core sales go to the UK
market, but it covers more than 70 other countries.
WEAKNESS:
1. Rolls Royce Engine
The engine has decreased both the punctuality of British Airways flights and
the aircraft availability. Many aircraft had to be let go of, and the airline had
to reduce the number of flights and seats.
2. Issues with HR
Human resource is perhaps the most vital resource any organization has at
its disposal. British Airways realizes the importance of having an HR
department but they have faced some issues over the years.
3. Revenue Heavily Dependent on Local Market
British Airways relies primarily on sales in the UK market for its revenue
generation, which can be an unstable form of money as COVID-19 and
Brexit have impacted these sales. Currently, almost 50% of the company’s
revenue comes from the domestic markets, and hence, it needs to start
schemes to increase sales in foreign markets.
OPPORTUNITIES:
1. Expansion of Services
There are many services that the company can expand to for increased
revenue growth. They can start adding premium services that will attract
high-end customers as well as businesses towards the airline.
Airlines also use the tactic of starting hospitality services like hotels which
also help the revenue grow. British Airways can take notes on increasing
their product line to reap more benefits.
2. Expansion into International Markets
As discussed previously, it is a dire need of the time that the airline

penetrates into foreign markets. Expanding into international markets will
help stabilize the revenue sources of the airline and will increase customers
too.
3. Technological Advancements
The company has already shown excellent results that it has managed to
achieve through the digitization of many of its services. However,
technology is a fast-growing field that has new developments every day.
This means that there is an endless array of new opportunities that the
company can use to its benefit.
THREATS:
1. The COVID-19 Pandemic
Flights, especially international ones, were one of the first things to shut
down when coronavirus hit. This has taken a massive hit on the revenues of
all airlines, including British Airways. Not only has the travel reduced, but
airlines now have to comply with a wide range of Standard Operating
Procedures (SOPs), with regards to COVID-19, to keep their operations
running. People will travel only by airlines they feel are safe enough.
Regulatory authorities can also shut your company down if they find
disregard for the SOPs.
Many people have been avoiding international, and even local, travel
altogether. Events that required your presence are now conducted through
online avenues, the increased usage of which has shortened distances even
further.
2. Competition in the Market
The increase in the competition has taken market share away from the
airline and distributed it amongst other suppliers. Companies constantly
need to fight off competition, requiring time, effort, and constant spending
of money.
3. Brexit
Brexit caused a lot of economic uncertainty that has had significant impacts
on British Airways. Not only that, but the new set of laws also affect the
working of the airlines. The event has put many challenges in place for
British Airways, which they need to work actively against. The custom laws
and immigration laws are going to have considerable impacts on how the
airline operates.
4. Regulatory Factors
British Airways faces a high level of regulation from both the aviation
authority and the government. There are many things that the airline needs
to comply with, and in case they don’t, they risk hefty sums of fines being
imposed on them.

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Introduction:

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a

British Airways has been putting a lot of strategic focus on becoming a

British Airways has established a highly positive brand image in the UK

3. Revenue Heavily Dependent on Local Market

2. Expansion into International Markets

As discussed previously, it is a dire need of the time that the airline

1. The COVID-19 Pandemic

2. Competition in the Market

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