Company Analysis of United Airlines Essay

1524 Words May 14th, 2007 7 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
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Based on your analysis of the industry and company (including homework assignments 1 – 4), what major strategic issues does the company need to address in order to best compete against the other companies in the industry?

United Airlines has been having financial trouble for years but they now seem to be on an upward swing. The company still has many strategic issues to address to become more competitive in the airline industry. Of these issues the most important issue to address is cost. United has a very high yearly revenue but they have major difficulty turning a profit because of their high costs. In order to stay competitive they cannot raise prices to cover these costs, but rather they have to find a path to become more efficient. Companies such as Southwest Airlines and JetBlue are extraordinary competitors because of their ability to be low-cost. There are many strategies that are used by Southwest and JetBlue that could be applied to United Airlines to make them more profitable. United Airlines baggage transfer in airports is time consuming and expensive. Researching a way of speeding up the transfer would save millions of dollars. This is just one of many different examples of ways to save money without significant change to the business structure. The high costs of running and maintaining United Airlines is what drives the overall profit and success of the company down. To better

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