Diversification

According to Andrew (1997), the use of business strategies is for dilating and justifying the values of
the company. British Airways decided to plan and implement diversification aligned with Ansoff’s
(1957) framework which describes how firms could venture into different markets in order to
increase their reach and boost their revenue. British Airways implemented concentric diversification
as British Airways sanctioned a deal post Covid with Boeing to get 50 new 737 aircrafts which would
play an important role in their short haul flights, with this fleet renewal it would be easier for them
to cater to their growing demand in that specific market. Ultimately, this would attract more
customers due to the presence of more flights and help the firm to gain an advantage in the short
haul flight market and grow a significant presence in the business. However, the addition of more
flights would result in more carbon emissions despite the new flights being more fuel efficient
therefore, this would mean breaching their sustainable goal and staying intact with their aim of
achieving net zero emissions by 2050.

Growth Focussed Strategy

Furthermore, BA have also focused on growth centred strategies with the help of a market
development plan. BA formed multiple bonds and alliances across the globe in order to reach a
larger customer base and expand into different segments to its competitors’ customers and surf
across the international market. Moreover, BA has partnered up with Iberia, Finnair, and Japan
Airlines in order to facilitate customers travelling from Europe to Japan (Japan Airways, 2016). In
addition, it has within its arsenal, franchises and subsidiaries that aid their growth strategy and
provide the platform to mark their footprint in many more segments of the market. In contrast,
British airways being solely dependant on their franchises in South Africa, Comair who’s associated
with British Airways went defunct and had to cease their agreement this resulted in British Airways
losing customers in the south African region and potentially constraining their growth. (Carin, 2022).

References

Smith, C. (2022) British Airways reportedly wants new SA partner as it cancels Comair franchise
agreement, Business. Available at: https://www.news24.com/fin24/companies/british-airways-
reportedly-wants-new-sa-partner-as-it-cancels-comair-franchise-agreement-20220801 (Accessed:
December 13, 2022).