Question

$12.00 United Airlines - Strategic Management, SWOT Analysis, Operations Analysis, Value Chain Analysis

Found in Business: Management
Chapter 1, # 0
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Q:

What is your impression of the operation of United Airlines? 

Conduct a SWOT Analysis of United Airlines to be submitted in an MS Word table.  

Define competitive advantage and competitive strategy. Does United Airlines have a competitive advantage and/or a competitive strategy? Justify your answer. 

Define competitive advantage and competitive strategy. Does United Airlines have a competitive advantage and/or a competitive strategy? Justify your answer. 

 

 

 

 

 

Tutorial
 
$12.00
United Airlines - Strategic Management, SWOT Analysis, Operations Analysis, Value Chain Analysis
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  • Posted on Jun. 25, 2011 at 01:14:24AM
A:
Preview: ... k i.e. it operates more than 3,000 flights a day to more than 200 US domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. It has contractual relationships with various regional carriers to provide regional jet and turboprop service that has been branded as United Express. This strong network infrastructure enables it’s access to key markets and enhance the quality of its delivery services. Strategic Alliances UAL is the founding member of the Star Alliance, the world’s largest airline network. Through this it has formed bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. The resource sharing activities include code sharing, reciprocal frequent flyer program benefits, co-ordination of reservations, ticketing, passenger check-in, baggage handling and flight schedules. Employee Productivity: UAL has strong revenue per employee as compared to its competitors. In FY2008, the company recorded total revenues of $20,194 million and employed a total of 50,000 employees. The company's revenue per employee at $403,880 is higher than that of its competitors such as Delta Air Lines, Southwest Airlines, US Airways Group and Continental Airlines.   Weaknesses Weaker Financial Performance: The company has already been through one round of restructuring under the bankruptcy procedures in 2002. This was in the aftermath of the 9/11 incident that had a deep financial impact on the airline industry as a whole and especially in the US. The company has had an operating loss in FY2008 after two profitable years in 2006, 2007.There has also been a very sharp decline in the operating profit of the company, that raises a deeper concern on the cost structure of the company and if it is again sliding to bankruptcy. Heavy dependence on third-party providers UAL has outsourced many of it’s core and non-core operations to vendors and suppliers through service level contracts. This creates a dependence of UAL on them for meeting their service levels to ensure their operations in order. This definitely has created coordination overheads both in contractual and operating terms for UAL. Most airlines internationally are consolidating their vendor lists and entering into strategic partnerships with larger suppliers who can provide entire set of servic ...
The full tutorial is about 1697 words long plus attachments.

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Attachments:
UAL - Case Analysis.docx (30K) (Preview)