United Airlines Case Analysis Essay

Better Essays

Business Strategy
1. United Airlines is owned by the UAL Corporation and was incorporated on December 30, 1968. The actual company was formed may years before this actually in 1925 and was a private mail carrying service between Pasco, Washington, and Elko, Nevada, and from these humble beginnings they formed a were able to start a company that would come to be a global leader in the airline service. From the 1960’s to the 1980’s the company had 6 different presidents and started to expand and venture into different aspects of business other then airlines and were unable to have any success. These companies that they purchased were not a success and were later resold.
During the late 1980’s United purchased the Pan American Airways …show more content…

2. United Airlines likes to use strategic planning to try and stay ahead of the competition but in its history it has not always worked. United Airlines has tried to make mergers without the approval of the union and were not able to complete it when the department of justice said that the merger would not happen because it would bring a loss in competition. One of the things that has helped the business, is that they use a hub and spoke method for their passengers. This allows the company to provide many different air ports and terminals that its customers can use and also helps to stream line flight schedules and saves the company millions of dollars every year. Partnering with these major companies to form a global alliance helps to circumvent national laws, share resources to develop additional routes and global marketing strategies. The major alliances were Star, Oneworld, SkyTeam, and Wings. The agreememnt that these companies made to work together saved all of the millions of dollars and was able to help all of the companies to compete globally.
3. Obviously one of the biggest financial impacts that the company has faced was the terrorist attacks on September 11th and the financial and economic impact that this event caused on its own. United airlines responded to the attacks by installing bullet proof doors on all the cockpits and

Get Access
Get Access