SWOT And Porter Five Forces For Comparative Ratio Analysis: United Continental Corp.

Annual Reports:
For comparative ratio analysis, all of the financial reports of preceding three years 2014-2016 were downloaded from official sites of both the firms.
Official Websites:
The official sites of both the Delta Air Lines and United Continental Holdings were considered to acquire the authentic data for building portfolio information of the products, business objectives and history of the firms.
Different Newspapers including USA Today, Telegraph, The Guardian, Fox News etc. were concerned. Many online articles sites including Reuters, Streetinsider, Trefis, Investis etc. were also concerned to collect information regarding the business performance.
Text Books:
In order to revive the knowledge of the accounting
…show more content…
For my RAP, I will be utilizing SWOT and Porter’s five forces in this regard.
SWOT Analysis:
SWOT is abbreviation of Strengths, Weaknesses, Opportunities and Threats. It is an exploratory framework which helps an institute face its acute challenges and also discover its most favorable new markets. SWOT is extraordinarily powerful because with reasonable consideration, it can help us unveil opportunities that our business is well-placed to exploit. Also by intensely exploring the weaknesses of our firm, we can regulate and normalize threats that would have otherwise be unawares and cause consequences (Fallon 2017). Limitations of SWOT Analysis:
Few limitations of SWOT Analysis are stated as (Firth 2015)
• It can simplify a complex problem but it can also oversimplify it. It is though handy to graph the problem on paper through this analysis but does not provide a needed in-depth evaluation of a tough
…show more content…
With the clear analysis through this technique a good advantage on business strength can be taken, the weakness can be improved and incorrect steps can be avoided (Porter's Five Forces n.d.). Of the five forces, the competitive rivalry expresses how tough the competition is in the market. The bargaining power of suppliers demonstrates how much power the suppliers have to control the prices. Similarly, the bargaining power of customers shows how much power the consumers have to affect the price and quality of the product. The threat of new entrants describes how easy or difficult it is for new companies to join the market under consideration. The threat of substitute product determines, how easy it is for consumer to shift to product or service of competitor (Arline 2015). Limitations of Porter’s Five Forces:
The limitations of this technique are given as (Porter's Five Forces Limitations n.d.)
• The markets these days are changing at a faster rate and without regular up to dating of the model; it won’t be of good use.
• The companies these days have multiple product lines like Wal-Mart, which makes it difficult to choose their specific market for this analysis.
• The tool do not take into account the new important factors of competition including corporate social responsibility, corporate ethics etc.
• The model also ignores the view that large firms can

Related Documents