Once self-acclaimed as the ‘World’s favourite airline’, the decline of British Airways has been remarkable and is arguably due to many different factors. The challenge for any business is to react to both internal and external influences. How they manage this change is as significant for the market leader as it is for a new business start-up. As the England cricket team has just found out, it is one thing reaching the number one spot in the world, and another thing to stay there.
The Harvard University business guru, Michael Porter, has recently revisited his ground-breaking five forces model and it is interesting to see how he relates the model to the airline industry in particular. The idea is that the strategy of a business, and therefore the potential for profits, is determined by the following five forces:
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