United Airlines

“UnitedHealthcare provides network-based health care benefits for a full spectrum of customers in the health benefits market” such as students and individuals; sole proprietorships to multi-site, large national employers; promotion of health benefits to Medicare retirees and beneficiaries; and provides Medicaid and community programs (UnitedHealthcare, 2010). UnitedHealth Group 2012 revenue was $11.3 billion. The company is continuously growing through various mergers and acquisitions within the US and Europe, increasing members and revenues (Keepournhspublic, n. d.).

The demographic characteristics of customers can be broken down by the class they choose to fly. First Class is chiefly attracting high-income earners, who are concerned with a high level of service and enjoy an air of exclusivity. These are knows as “comfort seekers” and they can include business magnates, federal politicians, sporting stars and a-list celebrities. The First Class market is highly concentrated; less than 3% of passengers will choose to fly First Class but those customers make up close to 30% in revenue for the airline (Keen and Strand 2007). Because the focus is on service and

Over 35 years ago, Rollin King and Herb Kelleher decided to create a different type of airline. They began with the simple notion: If you get your passengers to their destinations when they want to get there, on time and at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. They were right (Southwest Airlines, 2004)!

Threat of New Entrants - The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include:

United Way unique responsibility it has regarding ethical behavior and best practice regarding governance and financial accountability has change the focus from fund raising to “how much impact did we have on our community?” Brian believes it is the company responsibility to be accountable to the investors by creating value and offering a concrete return. UWW governance their local offices by requesting an annual report to the headquarters. Making change will be easier by taking the annual report

Southwest Airlines and United Airlines have been direct competitors in the airline business for a number of years. As time has passed, we have seen Southwest take a more Servant Leadership minded approach, while United decided upon a more traditional style of Leadership. From their mission statements, along with reviews from flyers and profitability, to the overall culture of the companies, we look to see how these two airlines compete, and which one comes out on top.

How has SWA (a) responded to the “Shuttle By United” initiative (half page 5 points); and (b) what assessments can be made about SWA’s market and financial position on competitive routes based on 1994 4th quarter results (half page 5 points)?

United attempted to solidify the strategy even further "shuttle by united" coded U2 of replicating many operational features of Southwest Airlines. " lowering operating costs as a higher priority since United's cost for shorter domestic routes ,under 750, miles was 10.5¢ per available seat mile. United's targeted cause her seat that was 7.5 cents for its shuttle operations." (4). Shuttle by united even implemented Boeing 737 jets with a 20 minute air prep turnarounds, while personnel attended enculturalization and motivational classes that emphasized teamwork and customer service. Shuttle by United went as far to match Southwest's flight prices and frequent flier miles. United had a clear intiative that show intial success but when you compete on price things usually backfire at the end, as it did with Shuttle by United with low profit margins causing them to ditch their plans.

United Healthcare assesses that it services approximately 70 million Americans . Its entire system spans 676,287 physicians and health care professionals, 80,000 dentists and 5,190 hospitals, whilst their pharmaceutical management provides more affordable drugs to 13 million people.

UnitedHealth Group is a diversified health care company, and a worldwide leader in helping people live healthier lives and taking the necessary steps in making the health system work better for everyone. The UnitedHealth group serves more than 85 million individuals worldwide with health benefits and services. In 2012, they produced revenues of $110.6 billion and were ranked number 17 in the Fortune 500. The economic and political segments would rank the highest in influencing the UnitedHealth Group.

Small business customers and leisure travelers were the ones benefited the most from American’s new fare structure. Previously, small business customers who does not have the power and volume to negotiate with airline companies for discounted deals had to pay higher rates for first-class or coach tickets. American’s new cost structure reduced the full coach fares which allowed small business customers to purchase flight tickets at cheaper prices more conveniently. Leisure travelers, unlike business travelers, have more flexibility in terms of travel dates, thus allowing them to take advantage of the advance-purchase discounts and Saturday-night stay discounts under the new fare system.

United Airlines currently operates nearly 3,000 flights per day on United, as well as United Express. This amounts to more than 200 domestic and international destinations from hubs in Los Angeles, Washington D.C., Chicago, San Francisco, and Denver. United is known as one of the largest international airlines that is based in the United States, with global air rights in the Asia-Pacific area, in Europe, and in Latin America. (United Air Lines, 2009)

United Airlines used questionnaires to classify their potential customers by their motivations and identified nine motivational segment profiles which are: global executives, schedule optimizers, corporate troopers, mile accumulators, reluctant travelers, tour takers, quality vacationers, travel seekers, and frugal flyers (The Times 100, 2003, p. 2). The reasons why travelers choose to fly United varies. For example, some may choose this airline because of price, while others choose it because of their frequent flyer program, schedules, or other services.

customers who can pay better rates. Large airlines get benefits of the Business Class Customers

The airline industry consists of over 11 firms that operate in the United States and beyond. In 2015, Southwest’s market share was at 18% as you can see in the graph below.