A Competitive Analysis of Airline Industry: A Case Study on Biman Bangladesh Airlines

A Competitive Analysis of Airline Industry: A Case Study on Biman Bangladesh Airlines

Established on 4th of January 1972, Bangladesh, developing nationGovernment owned, Small Airline, A growing & large market shareLimited resources, aircrafts, infra, qualified personnel, technologyBiman Bangladesh AirlinesCompetitors: Dhaka London RouteEmirates, British Airways,Qatar Airways, Singapore Airlines, Air India, Jet airways, Gulf AirBusiness Strategy Competitive Analysis of Biman AirlinesWhen two firms compete within the same market, one firm with capability of persistently higher rate of profit will have competitive advantage over its rival GrantDelivering of superior value to customers, while earning an above average return for company and its stake holders Mc GeeCompetitive advantage is visible with changes in external and internal environment of a company and its responsiveness to changeResearch 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 publicationsContd..Biman Cost focus strategyPrice Parity with cost leader in Industrynever charges very high prices under any circumstancesIt is able to control its costs to maintain its competitive advantage of pricingStrategy of Focus on a particular customer group Statistics shows that 85% customers are Rich Bengalis (British or Residents of UK)Marketing strategy is to serve special needs of this narrow segment

FrameworkStrengthsFrequency(6 in 7 a week)Extra Baggage allowanceCultureTargeted PromotionCustomer loyaltyDirect FlightWeaknessLack of technology & Skilled LaborCorruption, Debt, Maintenance costsOpportunitiesPrivate OrganizationThreatsOld Aircrafts (DC -10 Prohibited in Heathrow Airport)Political InfluenceRising Fuel costs

Threat of New EntrantsLowBiggest Capital requirementSafety Requirements expensesBargaining power of suppliersHigherPower of Price and quality2 suppliers: Boeing & AirbusOil Prices Cost focus strategyBargaining Power of CustomersHighLess Switching costsMore playersThreat of substitutesVery LowNo international Land routeRivalry in IndustryVery IntenseMarketing strategies More Quality service

PEST analysisPolitical: - UnfavorableTrade Unions (Govt)Favoritism & NepotismInternational Scenarios (9/11 attacks Empty flight to New York)Increased Oil Prices (Stopping flights to Kuwait)Economic: - FavorableWell Settled Begalis Restaurant Business 7 billion pounds a year to UKSocio Cultural - Favorable13000 Bangladeshi Restaurants in UKHomely treatment, Local Food, Native Language, Extra Baggage (40kgs>30)TechnologyFully Automated : Modern e-reservation system FavorableEnsures spaces for passengers and maximum utilization of space economic operationBaggage tracking for lost baggageOutdated Aircrafts - Unfavorable

To maintain its competitive advantage Biman has to..Overcome poor maintenanceInviting Private Outsourcing Expertise in functionsChecking and Boarding pass can be done onlineAdvancement in technologyAcquiring skilled engineering & staff and More Aircrafts(latest)SchedulingApart from extra luggage facilities, need to focus on Local Tourism to add to its specilaities

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