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Paper Topic:

Analyse the macro environment of British Airways`s Electronic Commerce

Analyse the Macro Environment of British Airways` Electronic Commerce


Analyse the Macro Environment of British Airways` Electronic Commerce

Every company in the airline industry is greatly influenced by a large number of macroeconomic factors , over which the company has no control The factors of the macroeconomic environment in many ways determine the organization 's success , because they have a deep impact on all of the company 's activities

Macro environment of e-commerce is influenced by most of the macro factors which have an impact on traditional operations . However , it is

br slightly different from macro environment of regular operations because it is more dependent on various technological changes and competitors innovations . Besides , macro environment of e-commerce is greatly influenced by international factors , because users of Internet are located all over the world and they can buy many products and services online

British Airways largely depends on macroeconomic conditions not only in the UK which is its domestic market , but also in other countries of the world , because it has customers in various countries . Online services are gaining more and more importance in the operations of the company due to their increasing revenues . British Airways ' performance is greatly influenced by any events which take place in different countries , such as changes of government , downturn of economy , changes in consumers ' preferences and their level of income , change in consumers ' demographics . The company needs to devote maximum attention to the analysis of all of these factors because they have significant influence on tourism and people 's desire to travel by airplane

PESTEL analysis for British Airways e-commerce is represented in table 1 . It is crucial for understanding of the impact of macro environment in which the company functions . The major factors of macroeconomic environment which have a deep impact on the operations of the company include political , economic , social , technological , environmental , and legal factors . These factors need to be taken into consideration by the management of the company . Factors which are connected with e-commerce and would not be present in traditional business models are highlighted


Current legislation regulating airlines

European /international legislation development

Government policies regulating airlines

Wars in certain parts of the world

Political prohibition of travelling to certain countries


Changes in taxation which could affect the price of airline tickets

Change in the exchange rate of

Changes in the price of oil

Changes in price of Internet in various countries

Changes in consumer income

European economy trends which could decrease the number of passengers travelling by airplanes

Appearance of new competitors offering similar services Social

Current lifestyles of consumers and possible changes in them

Consumer buying patterns

Consumer demographics

Consumer travelling patterns


Number of Internet users

Number of consumers shopping for airplane tickets online

Number of crimes connected with e-commerce (number of hackers


Competing technology development in airlines

Innovation potential of competitors in airline e-business

Introduction of new technologies in e-commerce

Introduction of new software and hardware to the market




Pollution conditions



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