Sample Business Model Report

Group Members:
Leader: Koh Chin Guan (Sn: 0982711223)
Secretary: Ann Lee Mei Mei (Sn: 0998765341)
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Class-code: L43 2014
Submitted on: dd/mm/yyyy

British Airway Business model (Minimum Report)
In examining a firms business model/s, you need to show how the firm strategies against its
competitors factoring both micro and macro environmental factors.
1. Business Value Proposition: Quality flights for all people (also BAs Brand)
e-Business OVP statement: Your computer is now the airport The new online e-
business model is an expansion of the existing business model. BA was amongst the
first airline to bring innovative online experiences to its customers in 2004. It
differentiated itself against its competitors by improving the process of managing
customer travel plans, travel bookings and simplify customers journey through the
airport with online speed, ease and convenience.
2. Revenue, Pricing & Cost Policy: Revenue from direct sales moving people &
cargoes. Pricing: 1. Premium strategy (High-quality/High-price), 2. Medium-value
strategy (Medium-quality/Medium-price) and 3. Economy strategy (Low-
quality/Low-price). With customers managing their own ticketing and travel needs,
BA enjoys lower cost overhead and uses it to lower seating prices, better inflight
entertainment and services.
3. Market Opportunity: Global Aviation of 150 destinations worldwide. Expend
presence in top tier global cities, either directly or through expanding network of
airline partnerships.
4. Competitive environment: Competitive rivalry is high with other international
airlines. Macro environment factors: Power of suppliers is high as dictated by two
aircraft manufacturers, external threats of Open skies agreement, global economic
crisis, political crisis (e.g. Crimea & Middle East wars), low cost competition by
budget airlines. However, threat of new entrants is low because of high cost of entry
and stringent regulatory requirements.
5. Competitive advantage: London is BA home city, the emotional and financial heart
of international business. It is also the worlds biggest and most competitive
international air market. Ensuring Heathrow remains a world-class hub is vital to
give BA a strong London base to serve the largest international long haul markets.
Built around BA Global Premium Airline strategy and brand image of prestige,
glamour, comfortableness, safety and reliability.
6. Mkt strategy. To influence government policy decisions, and work with the airport
owners on the continued development of the infrastructure. Grow its mileage and
holiday businesses, and boost revenues from third-party engineering, retailing and the
development of non-air partnerships. Improve flight schedules, and deliver enhanced
frequent flyer benefits, improved customer service and better disruption management.
7. Orgn development: structured around five key themes Colleagues, Customer,
Performance, Excellence and Partnerships. Monitor the performance of its
partnerships through a variety of success criteria to ensure cost effective execution in
supply chain & marketing.
8. Key Mgt team. Evidence of strong global aviation knowledge with combined
experience of > 50 years: Keith Williams, Frank van der Post, Andrew Crawley