Company Analysis of United Airlines

1528 WordsMay 1, 20077 Pages
Final Analysis Evaluate and assess the strategic implications of your company's finances vis-à-vis the other companies in the industry. Are there particular financial results that could impact, positively or negatively, the company's ability to compete? How can the company leverage strong financial results or lessen the impact of weak financial results in order to compete successfully? The strategic implications of United Airlines have similarities and differences when comparing them to the competitors in the airline industry. United is just exiting bankruptcy, and has less than impressive financials. Yet, due to the exit barriers that airlines face, United must constantly make investments and strategic decisions to stay…show more content…
In the airline industry switching costs is very low and many travelers change airline companies every time they fly. United Airlines should focus on trying to keep customers coming back to United Airlines so that their customer base will continue to grow. By bringing customers back again and again they can build a customer base that will continue to fly United and produce a stable market position for United Airlines. United needs to develop a better defined goal and vision statement and the company and employees must envision themselves as a part of the company image. United Airlines has a vague and impersonal vision statement that has no direct effect on the company's business transactions or company decisions. Once a better vision statement is constructed all executive decisions should be compared with the vision of the company. The company can then create a consistent image in which the general public will view them. Then by creating a vision statement they can create goals to go along with it. One strategic issue that is a major factor for United Airlines to address is the ever-expanding global market. China and India are the two countries with the most people in the world. Becoming the first to truly expand to the entire globe could be the biggest and most profitable move available for United Airlines. United Airlines is one of few that have the ability to move people from the United States to Europe and beyond. Capitalizing on this could
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