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    A Competitive Analysis of Airline Industry

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    alexantsy27
    Biman Bangladesh Airlines was established in 1972 and is the national carrier of Bangladesh. It has a small fleet and limited resources compared to its major competitors on routes from Dhaka to London such as British Airways, Emirates, and Qatar Airways. To maintain its competitive advantage, Biman focuses on keeping costs low to match competitors' prices. It also focuses on the customer group of wealthy Bangladeshis traveling between the UK and Bangladesh through frequent flights, extra baggage allowance, and targeted promotions appealing to Bangladeshi culture. However, Biman faces weaknesses such as outdated aircraft, lack of technology, and high maintenance costs. It needs to improve aircraft, hire skilled personnel, and potentially pursue private outsourcing and partnerships to better

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    A Competitive Analysis of Airline Industry

    Uploaded by

    alexantsy27
    880 views8 pages
    Biman Bangladesh Airlines was established in 1972 and is the national carrier of Bangladesh. It has a small fleet and limited resources compared to its major competitors on routes from Dhaka to London such as British Airways, Emirates, and Qatar Airways. To maintain its competitive advantage, Biman focuses on keeping costs low to match competitors' prices. It also focuses on the customer group of wealthy Bangladeshis traveling between the UK and Bangladesh through frequent flights, extra baggage allowance, and targeted promotions appealing to Bangladeshi culture. However, Biman faces weaknesses such as outdated aircraft, lack of technology, and high maintenance costs. It needs to improve aircraft, hire skilled personnel, and potentially pursue private outsourcing and partnerships to better

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    A Competitive Analysis of Airline Industry

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    Biman Bangladesh Airlines was established in 1972 and is the national carrier of Bangladesh. It has a small fleet and limited resources compared to its major competitors on routes from Dhaka to London such as British Airways, Emirates, and Qatar Airways. To maintain its competitive advantage, Biman focuses on keeping costs low to match competitors' prices. It also focuses on the customer group of wealthy Bangladeshis traveling between the UK and Bangladesh through frequent flights, extra baggage allowance, and targeted promotions appealing to Bangladeshi culture. However, Biman faces weaknesses such as outdated aircraft, lack of technology, and high maintenance costs. It needs to improve aircraft, hire skilled personnel, and potentially pursue private outsourcing and partnerships to better

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    880 views8 pages

    A Competitive Analysis of Airline Industry

    Uploaded by

    alexantsy27
    Biman Bangladesh Airlines was established in 1972 and is the national carrier of Bangladesh. It has a small fleet and limited resources compared to its major competitors on routes from Dhaka to London such as British Airways, Emirates, and Qatar Airways. To maintain its competitive advantage, Biman focuses on keeping costs low to match competitors' prices. It also focuses on the customer group of wealthy Bangladeshis traveling between the UK and Bangladesh through frequent flights, extra baggage allowance, and targeted promotions appealing to Bangladeshi culture. However, Biman faces weaknesses such as outdated aircraft, lack of technology, and high maintenance costs. It needs to improve aircraft, hire skilled personnel, and potentially pursue private outsourcing and partnerships to better

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    A Competitive Analysis of Airline

    Industry: A Case Study on


    Biman Bangladesh Airlines

    Biman Bangladesh
    Airlines

    Established on 4th of January 1972, Bangladesh,


    developing nation
    Government owned, Small Airline, A growing & large
    market share
    Limited resources, aircrafts, infra, qualified personnel,
    technology
    Competitors:
    Dhaka London Route
    Emirates, British Airways,
    Qatar Airways, Singapore
    Airlines,
    Air India, Jet airways, Gulf Air

    Business Strategy Competitive


    Analysis of Biman Airlines
    When two firms compete within the same market, one firm with
    capability of persistently higher rate of profit will have competitive
    advantage over its rival Grant
    Delivering of superior value to customers, while earning an above
    average return for company and its stake holders Mc Gee
    Competitive advantage is visible with changes in external and
    internal environment of a company and its responsiveness to change
    Research Methodology: Case Study research study of a
    phenomenon within its real life using multiple sources answering 5
    Ws.
    A theoretical framework is been provided by collecting qualitative
    data from both airline managers and customers and relating this
    data with facts and figures from various news articles and
    publications

    Contd..

    Biman Cost focus strategy


    Price Parity with cost leader in
    Industry
    never charges very high prices
    under any circumstances
    It is able to control its costs to
    maintain its competitive advantage
    of pricing
    Strategy of Focus on a particular
    customer group
    Statistics shows that 85% customers
    are Rich Bengalis (British or

    Framework
    Strengths

    Frequency(6 in 7 a week)
    Extra Baggage allowance
    Culture
    Targeted Promotion
    Customer loyalty
    Direct Flight

    Weakness
    Lack of technology & Skilled Labor
    Corruption, Debt, Maintenance
    costs

    Opportunities
    Private Organization

    Threats
    Old Aircrafts
    (DC -10 Prohibited in Heathrow Airport)

    Political Influence
    Rising Fuel costs

    Threat of New Entrants


    Low
    Biggest Capital requirement
    Safety Requirements
    expenses

    Bargaining power of suppliers


    Higher
    Power of Price and quality
    2 suppliers: Boeing & Airbus
    Oil Prices Cost focus strategy

    Bargaining Power of Customers


    High
    Less Switching costs
    More players

    Threat of substitutes
    Very Low
    No international Land route

    Rivalry in Industry
    Very Intense
    Marketing strategies
    More Quality service

    PEST analysis
    Political: - Unfavorable

    Trade Unions (Govt)


    Favoritism & Nepotism
    International Scenarios (9/11 attacks Empty flight to New York)
    Increased Oil Prices (Stopping flights to Kuwait)

    Economic: - Favorable
    Well Settled Begalis Restaurant Business 7 billion pounds a year to UK

    Socio Cultural - Favorable


    13000 Bangladeshi Restaurants in UK
    Homely treatment, Local Food, Native Language, Extra Baggage
    (40kgs>30)

    Technology
    Fully Automated : Modern e-reservation system Favorable
    Ensures spaces for passengers and maximum utilization of space economic operation

    Baggage tracking for lost baggage


    Outdated Aircrafts - Unfavorable

    To maintain its competitive advantage


    Biman has to..

    Overcome poor maintenance


    Inviting Private Outsourcing Expertise in functions
    Checking and Boarding pass can be done online
    Advancement in technology
    Acquiring skilled engineering & staff and More
    Aircrafts(latest)
    Scheduling
    Apart from extra luggage facilities, need to focus on Local
    Tourism to add to its specilaities

    Thank You

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