British Airways Generic Strategy

Porter’s Generic Strategies

Concept of Generic Strategy was created in 1980’s which is still widely used across industries. It basically signifies three different strategic approaches:

• Cost Leadership

• Differentiation

• Focus

With these strategic approaches company can embark on to build a strong competitive advantage by modification and outperform their competitors. From past we can see how British Airways improved its profit even after economic slowdown in 2012. British Airways presently enjoying the profit because of the proper application of Porter’s Generic Strategies helped company in improving its profitability and gaining competitive advantage. Cost Leadership:

Cost leadership strategy is the most effortless among the generic

Also, the graph below displays the positive correlation between prices and quality of product and services provided by British Airways and its main Europe competitors. EasyJet 's generic strategy is a typical cost leadership technique. The business theory of EasyJet is that cash can be made on any course where a airlines can fly three times each day to low cost terminal, taking into account a base business sector size. The premise of business accomplishment for such strategy is keeping up a 30-40% cost advantage over set up carriers.

Focus:

It is concentrated on targeting and supplying a certain group of customers or some particular segment of product line or even geography of operations. Basically, BA is not able to target its business customers for short haul flight because it is considered as a luxury flights. The focus strategy should be used in mixture of cost leadership and differentiation. In case of selecting one of the above termed focus strategies by British Airlines it is important to be find out right offering by British Airways which will focus on a particular segment with expansion both product and services and geographic

Technology Advance

BA become Europe’s leading airline by employing indefinite strategies and fully attaching state-of-the-art technology. Additional innovative service was introduced by British Airways was Online Check-in Service allowing passenger to check in for flights and reserve their favourite seats by the use of Internet. Today, British Airways is the leading Airline Company in world and respected by everyone.

Human Resource Management

The people at British Airways are the major contributors of strategic competence to the company. Because of the importance of its people, British Airways articulated an employee development strategy through appropriate and effective training. This strategy will strengthen British Airways position in the marketplace.

Firm infrastructure

It is another significant support activity for the business and includes management information system, strategic planning and financial planning. Competitive advantage over firm infrastructure is gained by BA through its efficient hierarchy structure and vast amount of information, knowledge and expertise that the company