United Airlines Case Analysis
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United Airlines Case Analysis. BSAD 449 – Professor Muss May 9, 2006 by Renee Graham, Tamar Ferguson, Hope Halberg Jessica Powers, and Laura Rickard. Summary Overview. Introduction Industry Analysis Company Analysis Competition Problems Recommendations Conclusion. Demographic
United Airlines Case Analysis
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Presentation Transcript
United Airlines Case Analysis BSAD 449 – Professor Muss May 9, 2006 by Renee Graham, Tamar Ferguson, Hope Halberg Jessica Powers, and Laura Rickard
Summary Overview • Introduction • Industry Analysis • Company Analysis • Competition • Problems • Recommendations • Conclusion
Demographic Economic Political/Legal Sociocultural Technological Global General Environment and Trends
General Environment and Trends • Industry • Low-Margin • Capital-intensive • Cost components • Labor • Fuel Costs • Unions • Price Competition
General Environment and Trends • Techonology- • Internet • Decrease of customer loyalty • Global Trends • -1992 Strategic alliance with Air Canada • -1997 Star Alliance
General Environment and Trends • Sociocultural Trends- • -September 11, 2001 • - United Airlines Response • Political/ Legal • -1978 Deregulation • -Air Transportation Safety and System Stabilization Act • -Emergency Aid Loans
General Environment and Trends • Opportunities for continued success
The deregulation act of 1978 • Market size • The point-to-point system • Hub-and-spoke system • Alliances • Rolling hub system
JetBlue UAL Japan High S E C U R I T Y Low SW DAL Lufthansa Ryanair AMR CAL High Medium Low Cost to Consumers
Tangible and Intangible Resources • Value • Price • Tangible • Intangible • Brand Loyalty • Frequent Flyer
Differentiation • Market Share • Point-to-Point • No Change • Competition Strategy • Delta
Recommendations • Liquidation • $72 Million Cut • $500 Million in Future • $572 Million in Cost Reduction • Continue Strategies • Changing System • American Airlines • Long-term Contracts