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Transcript of Strategic Management
In 1993-1997, Continental purchased over 90 new Boeing aircraft which included 737's, 757's, 767's and 777's.
In 2001 -2005, continental had net income losses.
In 2006, it returned to profitability with a net income of $346 million.
On may 2010, continental airlines was a major American airline that merged with United Airlines.
On October 2010, the merger closed and changed their name into United Continental Holdings.
In 2011, both united and continental began merging its operations and began to use “United” callsign during air traffic control communications. In 1934, Founded by Walter Varney and Louis Mueller as a carrier company named Varney speed lines.
In 1934, began their first flying from El Paso (Texas) to Pueblo (Colorado).
In 1937, the headquarters moved from El Paso to Denver and change their company name into Continental Airlines.
In 1950, Continental Airlines merged with southwest based Pioneer Airlines and expanded its routes to include Chicago and Los Angeles.
In 1960, moved its headquarters to Los Angeles and providing air transport for US military troops. Total Operating Mainline Fleet: 697
Airbus A319: 55
Airbus A320: 97
Boeing 737 (500/700/800/900): 234
Boeing 757-200: 155
Boeing 767 (200/400): 24
Boeing 767-300ER: 35
Boeing 777-200/200ER: 74
Boeing 747-400: 23 Mainline Fleet Facts ECONOMIC LOGIC LOWEST COST THROUGH SCALE ADVANTAGES STRATEGY
With high fuel efficiency, it can reduces 45% fuel, so it can give a low price ticket In 2004, expand their route to Sweden, united kingdom, and germany.
In 2005, expand their route to china.
In 2006, expand their route to Denmark.
In 2007, expand their route to Greece.
In 2009, expand their route to Honolulu.
In 2010, expand their route to Asia, and Australia STAGING AND PACING In 1953, gaining their access to 16 additional cities in texas and new mexico.
In 1998, expand their route to japan, and Israel.
In 1999, expand their route to Switzerland and England.
In 2001, expand their route to hong kong.
In 2003, expand their route to spain, and Trinidad and Tobago. STAGING AND PACING Houston (HOU, IAH)
Los Angeles (LAX)
Newark Liberty International Airport (EWH)
Honolulu International Airport (HNL) Hangar Location of Continental Airlines In 1978, expand their route systems and the flexibility to develop innovative pricing structures.
In 1982, the headquarters moved to Houston and followed by acquisition with Texas international.
In 1983, Continental filed bankruptcy with losses of ($218,000,000.)
By the end of 1984, Continental was able to turn a profit.
In 1986 Continental took over Frontier Airlines and began flying its routes. Amtrak
TACA Group MileagePlus
Aeromar Frequent Flyer Program Total Operating Regional Fleet: 555
Canadair CRJ (200/700): 194
Embraer (145/170): 301
Embraer EMB-120: 9
Bombardier Q400: 30
Bombardier Q300: 5
Bombardier Q200: 16
(Only includes aircraft operated under capacity purchase agreements.) Regional Fleet Facts Vehicles The “Go Forward Plan”
The “ Fly to Win”
The “ Fund and Future”
The “ Make Reliability a Reality”
Finally, their “ Working Together” The mission for Continental Airlines is quite diverse, and its broken into 5 key areas Star Alliance Member Carriers
Adria Airways Scandinavian Airlines
Aegean Airlines Singapore Airlines
Air Canada South African Airways
Air China Swiss International
Air New Zealand TAM
ANA TAP Portugal
Asiana Airlines THAI
Austrian Turkish Airlines
Blue 1 United
Brussels Airlines US Airways
LOT Polish Airlines
Lufthansa Cape Air
Trans States Airlines Contracted Regional Carriers CAL has been through some rough times during the economic meltdown experienced in 2007-08 that affected its performance leading to the airline cutting 3000 jobs and eliminating 67 mainline aircrafts which included 737-300s and 737-500s ( wikipedia,2011). This was followed by merges that took place in 2009 and 2010 and had a positive impact on the finances of the airline. The merger led to more customers and services leading to increased customer base. There was an improvement in gross profit in 2010 of 0.71B with the net income increasing double fold at $233 M in 2010 from -$ 213 in 2009 ( wikiinvest, 2011). Financial analysis D
WOO JIN CONTINENTAL AIRLINES Value Creation ARENA Eco Friendly Skies
Reducing Carbon Foot Print, Finding alternative sources of energy to fuel their operation, Reducing waste at manufacturing centers and Developing Technologies that reduces dependence on fossil fuels Market Segments ARENA Medium – High social class. ( but relative cheap for American people ) INTERNAL ANALYSISI High fuel prices however remain a big challenge to the industry affecting all airlines ,but the company lags behind in implementing fuel reduction technology in its airlines. The offering of Gogo Inflight Internet as from 2009 has enabled customers with laptops with Wi-Fi capabilities or Personal Electronic Devices to access internet while on the flight
air cargo services and public airlines services Product Category ARENA Support Activities
Procurement Primary Activities
Marketing and Sales
After- Sales Service The Value Chain Value Chain Inimitable INTERNAL ANALYSIS The airline has acquired other prestigious honors that include Pet Friendly, Greenest Airlines, Best Executive / Business and Best Airlines for North America travel. Services beyond recognition as stipulated by the mission statement have contributed a lot in achieving this. Continentals airlines offers unique services including DIRECTV that enables people on board to access 95 channels of live television programs and virtual expert technology giving customers access to 24 hour web support of their travel needs services offered by continental are so unique that it has been able to beat other airlines to be the fourth best in worldwide RARITY INTERNAL ANALYSIS Continental became the first carrier in North America in service that enabled daily non stops flight was the first commercial airline to use biofuel power an airplane in a demostration in the United State Continental airlines have maintained a rarirty due to its services that most times have been unique INTERNAL ANALYSIS Value : Continental Airlines main valuable resource has been the ability to offer lowest available services to the customers while informing them of delays whenever they emerge. Strategy Competitive Advantage External Analysis Internal analysis Determining the Competitive Advantage Counters Website/ Internet Channel distribution ARENA Implementation levels and strategic leadership Strategy Goal and Objectives Vision and Mission Strategic Management Process Value Chain Vision &Mission Strategic Analysis Diamond Strategy History/ Background Continental Airlines EXTERNAL ANALYSIS Figure 4-2 Foreign Carriers
Regional Carrier Start ups
Cargo Carrier Business Strategy Change Aircraft Manufacturers
Aircraft Leasing Companies
Food Service Companies
Local Transportation Service
Hotels Alternate Travel Services
Private Transportation Travel Agents
Cargo and Mail
New Entrants Substitute
and Services Bargaining
of Suppliers Bargaining
Power of Buyers Degree of Rivalry
Rivals: Delta, US Air,
Northwest, Southwest The Value Chain Flight, route and
Training, Recruiting Baggage Handling
Training Computer Reservation System, In-flight System
Flight Scheduling System, Yield Management System System Lost Baggage Service
Complaint Follow-up Product
Market Research Information Technology
Communications System (Pricing)
Aircraft Acquisition Operations
Ticket Offices Programs
Group Sales Baggage Tracking
Young Top Management Agent Training
Incentive system Pilot Training
Safety Training - Legal - Community Affairs -Regulatory Compliance -Financial Policy - Accounting FIRM
DEVELOPMENT PROCUREMENT AFTER
AND SALES OUTBOUND
LOGISTICS OPERATIONS INBOUND
LOGISTICS ARENA ARENA WEBSITE Counters ARENA 1953 continental merging with pioneer airlines ( arlines in Houston, texas ) to gaining access to 16 additional cities in texas and new mexico
1981 Continental airlines merging with texas air corporation.
1987 people express, frontier, new York air, and several commuter carriers were merged into continental airlines to create the third largest U.S. Airline. 2009 : continental airlines joined star alliance and left from skyteam alliance
2010-2012 : continental airlines merged with united airlines. 1993 alliances with air Canada, air partners, and texas pacific group. And emerge from second bankcruptcy because they investing $ 450.000.000 to continental airlines
1998 continental airlines expand their route to japan and Israel
2004 continental entered skyteam alliance with northwest and CSA Internal analysis External Analysis Strategy Competitive
Advantage The airline's competitive advantages are based on scores recieved from different sectors that include : value,rare, inimitability , substutability, exploitable indicating its performance During international flights for instance, the airline offers economy class treatment with passengers receiving free snacks and meals while non alcoholic and alcoholic beverages are available at affordable prices
Beside this, there are Audio Video On Demand touch screen systems fitted in all seats of 757 and 777 . Strategic analysis
external Strategic Management