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