Essay on American Airlines

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Table of Contents Abstract 3 Situation Analysis 3 Strengths, Weaknesses, Threats, and Opportunities 4 Re-Branding 6 Pricing Strategy 8 Service Marketers 9 Future 12 Summary 12 References 13 Abstract In this case study we will review the new strategic business plan of American Airlines, and how they are responding to changes in the marketplace to compete in the modern era. We will also analyze the advantages of rebranding efforts, the effectiveness of existing practices of the airline and how the airline may operate post merger with US Airways. By some measurements, the merger between American Airlines and US Airways will create the largest company in the world, thus positioning American Airlines to potentially become the most…show more content…
A smaller airline is simple and can easily adapt to change. Smaller airlines field similar aircraft for interchangeability of maintenance workers and crew, they can quickly upgrade aircraft and they can easily adjust management, directly address minor issues and quickly respond to changes in the market place. While at a larger airline, bureaucracy slows these efforts, lengthily logistical and environmental issues prolong the change process, what takes months for small airlines to adopt may take years for a large airline. In my time in the military I learnt a school of thought called the tenants of guerrilla warfare, I find it very similar to this circumstance (if they're big and you're small, then you're mobile and they're slow, you're hidden and they're exposed etc etc). The threat of growing too large is a known issue that airlines like Southwest avoid by utilizing careful growth in their business plan. This new growth presents American Airlines to a new pool of customers, the untapped international community that has little knowledge of American Airlines and with the recent disasters of Air Asia and Malaysian Airlines the safety record of American is an advertising point that any flyer will greet with open arms. A complex marketing mix must be researched before entering a foreign market to ensure conditions like lifestyles, consumer behavior and political/legal environments can grant competitive position in the local market. (Peter

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