How Virgin Airways became a competitor of the British Airways?
British Airways have huge competition on different levels, including competition with local competitors as well as competition with international airlines. The competition is however intense on the international level on different terms including price, convenience and the services that they provide so they really need to maintain their quality to remain in the industry and maintain their market value. Similar terms are required to be maintained in the local competition as well as the competition it is also intense. So, British Airways face a high level of industry rivalry.
Virgin Atlantic is a significant competitor for British Airways. They offer the same service. However, they are more expensive. Therefor it is a Medium Risk for British Airways.
RYANAIR is very low-cost flights. They offer less customer service which is expected for how cheap some flights can be as lowest as £20 which is half of British Airways to match. Therefore the Ryanair is making High Risk for British Airways in the UK market.
Suppliers for British Airways include the suppliers supplying the airplanes, fuel as well as laborers. There are very few suppliers of airplanes as it is a very difficult task to do that and involves a huge amount of investments. So when the suppliers are less, the power is not with buyers, especially in this case as British Airways cannot function without the supply of airplanes, so they need to develop good long-term relationships with the supplier. Same is the case with other supplies; British Airways cannot survive without fuel or crew and maintain a good relationship with these suppliers as well. Thus, the bargaining power of suppliers is high in the case of British Airways.