British Airways Porters Five Forces 2018

By: Prudence K Magezi

The UK airlines industry has over the last few years become such a competitive battleground that only those carriers consolidating stand a chance of competing. This is why mergers and acquisitions have become the norm as evidenced by British Airways merging with IAG, parent company of Aer Lingus, Iberia, Level and Vueling, and Virgin Atlantic merging with Delta. IAG is already eyeing up Norwegian. In an increasingly cut-throat and low-margin air travel industry, the collapse of Monarch in 2017 as well as BA's decision to shut down its ten-year-old subsidiary, Open Skies, is a reminder of how competitive the industry has become. While the industry is still attractive as evidenced by success of Norwegian, the high degree of competition means that it is likely to see more collapses, mergers or acquisions. This report looks at how the five forces of competition buyer power, supplier power, threat of substitutes, threat of entry and rivalry between existing firms are shaping the UK airlines industry and BA.

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