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Transcript of United Airlines
Strong operational network
Hub & Spoke Company
Unit revenue is down in every region except in the Pacific region Opportunities
Growing airline industry
Opportunity to strengthen financial position
Target travel and tourism industry
Future oil prices
Low cost carriers Threat of new entrants
Low – Attractive
High cost of Entry
Tightly regulated industry
Customer loyalty to existing airliners
Bargaining power of supplier
High – Unattractive
Boeing and Airbus are the only two suppliers
Labor – typically unionized Bargaining power of the Buyer
High – Unattractive
Technology – gives potential customers a wider range of options when choosing airlines.
Threat of Substitutes
Low – attractive
High – unattractive
34 US based companies
6 airlines control 72% of the US market
All airliners are competing for the same customers with business travel decreasing. Bankruptcy Rivals Merging
American Industry Environment General and Industry Environments Global Strategic Alliance Acquistion of Continental Cost-Effective Differentiation International Growth http://www.unitedcontinentalholdings.com/documents/FactSheet.pdf?file=united_factsheet.pdf&type=pdf Competition Customer Strategy Results -Basu, C. (n.d.). How Do Monetary & Fiscal Policies Affect the Airline Industry?. Retrieved from http://www.ehow.com/facts_7568199_do-policies-affect-airline-industry.html
-Boyle, R. (2009, April). Technological Trends and Their Impact on the Airline Industry. Retrieved from http://www.sita.aero/content/technological-trends-and-their-impact-airline-industry
-Diversity and inclusion. (2013). Retrieved from http://www.united.com/web/en-US/content/company/globalcitizenship/diversity.aspx
Gallagher, J. (2012, February 21). United and Continental to Officially Become United Airlines in March. Retrieved April 1, 2013, from Yahoo! News: http://news.yahoo.com/united-continental-officially-become-united-airlines-march-191800227.html
Goldschein, E. (2011, Sep 8). 13 Ways the U.S. Airline Industry Has Changed Since 9/11. Retrieved from http://www.businessinsider.com/how-the-us-airline-industry-has-changed-since-911-2011-9?op=1
Hitt, M. A., Ireland, D. R., & Hoskisson, R. E. (2011). Concepts and Cases Strategic Management Competitiveness and Globalization. Mason: South-Western Cengage Learning.
Michael A. Hitt, R. D. (2011). Strategic Management: Competitiveness & Globalization. Mason, OH: South-Western Cengage Learning.
Mouawad, J., & de la Merced, M. J. (2010, May 2). United and Continental Said to Agree to Merge. Retrieved April 22, 2013, from New York Times: http://www.nytimes.com/2010/05/03/business/03merger.html?_r=0
Passenger demographics. (2012). Retrieved from http://www.unitedmediaservices.com/our-audience/passenger-demo.php
Pawlowski, A. (2011, March 18). Why Aren't More Women Airline Pilots?. Retrieved from http://www.cnn.com/2011/TRAVEL/03/18/female.airline.pilots/index.html
Reed, T. (2012, October 26). Is united fixed yet?. Retrieved from http://www.thestreet.com/story/11748597/1/is-united-airlines-fixed-yet.html
Research and Innovative Technology Administration (RITA). (2013). TranStats. Retrieved April 22, 2013, from RITA: http://www.transtats.bts.gov/
United Continental Holdings, Inc. (2013). About United Continental Holdings. Retrieved April 21, 2013, from United: http://www.unitedcontinentalholdings.com/index.php?section=about
United Continental Holdings, Inc. (2013, January 24). United Announces Full-Year and Fourth-Quarter 2012 Results. Retrieved April 23, 2013, from United: http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=irol-newsArticle&ID=1777521&highlight=
United Continential Holdings, Inc. (2010). United. Retrieved April 1, 2013, from United Continential Holdings: http://www.unitedcontinentalholdings.com/
United States Inflation Rate. (2013). Retrieved from http://www.tradingeconomics.com/united-states/inflation-cpi Questions???