Swot Analysis: Internal And SWOT Analysis Of American Airlines

At the time of the article, American had several competitive advantages. First, because they were a larger airline, their brand is preferred by consumers when all other factors (price, availability of flights, volume) remain equal. Also because of their size, many travelers have incentive to use them because of reward programs such as frequent flyer miles. American was also a major carrier hub at many cities around the country. Because of their hub status they were able to offer a larger volume of flights giving consumers more selection. Travel agents seemed to prefer American as well.

In between other revolutionary marketing programs, in 1981, American introduced the AADVANTAGE travel awards program to reward frequent flyers. On May 19, 1982, the company had a reorganization plan and a new holding company called AMR Corporation, which became the parent company of American Airlines. This reorganization brought to the company new frontiers. A year after AMR Services was formed as a subsidiary to provide aviation services to the other airlines, and AMR Consulting group which would provide consulting services in airline related business. Since 1990 American airlines has conquered most of its objectives, some of them are: the expansion of its routes all over the planet, the creation of a world wide web site for the convenience of its passengers and formed a customer-driven global alliance named “one world” with other airlines designing a raised standard of global air travel.

"Today, we are glad to dispatch the new American Airlines – a head worldwide transporter very much prepared to contend and win against the best on the planet," said Tom Horton, Chairman, President, and Chief Executive Officer of American Airlines. "Together, we will be surprisingly better situated to convey for the majority of our partners, including our clients, individuals, speculators, accomplices, and the numerous groups we

American Airlines, Inc. (AA) is a major airline of the United States. It is the world's largest airline in regards to accumulated passenger miles. American Airlines took off on April 15, 1926 when Charles Lindbergh flew a bag of mail from Chicago to St. Luis in a DH-4 biplane. A year later the first passenger flight flew from Boston to New York, heralding the real first passenger airplane travel by American Airlines. A subsidiary of AMR Corporation, the head quarters of American Airlines is in Fort Worth, Texas adjacent to the Dallas/Fort Worth International Airport. American operates scheduled flights throughout the United States and flights to Canada, Latin America, the Caribbean, Europe, Japan, the

| Weakness * The number of cancelling flights is a little high * The customer service is bad because in some occasion the customer can’t found the delta representative in the airport. * Lack of online presence * In some aircrafts the seats are uncomfortable and narrow

Good hubs, loyalty programs, strong brand image, the largest airline fleet, good maintenance and infrastructure standard, are just to name a few. The regions dominant U.S. carrier came along with the company’s innovative mind to buy routes that encourages spreading hubs in the most tourist attracted places. As hubs increase rewards become broader redeeming meaningful awards as you fly across the globe with American. American Airlines AAdvantage program awards miles and Elite Qualifying Dollars for every airline affiliated with the oneworld alliance. The many relationships with numerous car rental companies, hotel brands and cruise lines is what set them above the rest. Along with captivating that title they spread their brand image strongly from terminal kiosks, interior seats and logo to website along with the plane’s finish. The company recently redesigned their logo taking a turn from an American image moving towards the American spirit. The reason behind the change was being a global flight servicer the old logo based on just American but also still portraying America without becoming blindly patriotic. There’s over 959 planes in service and 247 on back order bringing the company to the largest operator of aircraft in the world. It operates the A321 aircraft which is the largest fleet but not being limited they operate the A319 fleet, Boeing 737 Next Generation, and much more. Furthermore, increasing the amount of passengers carried increasing the amount of revenue created for the company’s

* Contracts with competition. Their maintenance facility in Tulsa has started receiving other company’s planes for contracted repair. This is an opportunity to increase and build another addition onto American Airlines family.

American vision is called Flight Plan 2020. Within the flight plan there are 5 tenets that American strive to achieve success. They are to invest wisely, earn customer loyalty, strengthen and defend our global network, be a good place for good people and fly profitably (Corporate Responsibility, 2015). By achieving success in the tenets American can stay profitable and obtain the respect and approval of the customer.

bankruptcy protection bigger and better than ever. It also solidified American Airlines as the largest airline in the world. This merger has become to cornerstone of American Airlines affecting all areas of the organization both internal and external.

American Airlines had been the largest airline in the United States for a long time. In 1990 and 1991 due to a recession and the Gulf War, demand for air travel dropped drastically, for this reason, fare wars started and all the airlines incurred massive losses.

The focus of the SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories; internal factors and external factors. The internal factors are the strengths and weaknesses that are internal to the company while the external factors are the opportunities and threats that presented by the external environment. The internal factors are determined by their impact on the company’s objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The external factors may include technological change, legislation, cultural changes, and changes in the marketplace or competitive position (Wood, 2008).

SWOT analysis covers the strengths, weaknesses, opportunities & threats which a company is facing in its internal & external environment. Strengths & weaknesses fall under the internal environment of the company and opportunities & threats fall under the

American Airlines was the United States’ largest carrier in 1992 with a fleet of 622 jet aircraft, flying 2,450 flights daily to 182 locations, as well as new innovative technology and programs. American Airlines was the first to introduce a computerized airline reservation system called Sabre, “Super Saver” fares and frequent flier programs. Regardless of the innovations, American Airlines and the airline industry was still not operating as profitably or providing customer satisfaction the way it should have in 1992. In 1991, As a result of a recession and the Gulf War, demand for air travel fell, fare wars came about, and the airlines

SWOT analysis is a useful tool for understanding and decision-making for all sorts of situations in business and organization. SWOT analysis can be classified into internal and external factors affecting a company. The Strengths and Weaknesses of the SWOT analysis represent the internal factors that influence the viability of the company. While the Opportunities and Threats, on the other hand, are the external factors that may affect the company's performances. A SWOT analysis provides more understanding of the organization in relation to its internal and external environment so that manager can formulate better strategy in pursuit of its mission.

SWOT stands for strengths, weaknesses, opportunities, and threats (Ferrell and Hartline, 2014, p. 39). A SWOT analysis evaluates both the internal factors (strengths and weaknesses) and external factors (opportunities and threats) that create advantages and disadvantages to a company when serving its customers (p. 39). A SWOT analysis is extremely beneficial in helping a company determine areas of improvement (p. 39). Internal factors examine the actual company being analyzed while external factors examine the external market (customers and competition) (p. 85).