Does BA understand the concept of Value Proposition?

September 30, 2009 by admin

I am fascinated to note that British Airways appears to be moving away from the concept of delivering customer value and is focusing solely on the balance sheet. Over the last three months, BA has abolished meals on short flights, cut luggage allowances and has just introduced charging extra for the privilege of reserving your seat. At the same time, it has just launched a business-only service from London City to the US. Confused? You should be.

I don’t think I’m alone in thinking that BA has lost its way and is increasingly devaluing its value proposition which hitherto has been based on providing an excellent customer experience and brand clarity. Competition with low-cost airlines will be increased, not decreased, by its recent moves as the competitive playing field is being levelled by BA itself.

BA may well boost flagging revenues in the short term but at the risk of alienating its loyal customer base and thus destroying its hard-won value proposition.

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Tags: customer value, value proposition