Nowadays, computer technology mostly focusing on storage space and speed. With the rapid growing of important data and increased numbers of applications, devising new approach for efficient compression and encryption methods are playing a vital role in performance. In this literature review, burrows wheeler transformation (BWT) is introduced for pre processing of the input data and made several performance analysis experiments over different compression techniques like Lempel-Ziv 77, Lempel-ZivWelch, Prediction with partial match, Move to front coding, j-bit encoding along with various entropy coding .And improved compression ratio has been found by applying BWT as preprocessing step, hence it will be good for further research work.