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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
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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 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