SWOT Analysis Of American Airlines

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Performing SWOT analysis is very important to make any major decision related to the project. SWOT analysis helps improve the situations at the company and reduces the likelihood of any negative developments that affect the business while improving the performance of the company . The two most important aspects of a SWOT analysis are: 1) it helps the company to identify and differentiate internal and external risks in order to minimize such costly risks before moving on to grab the exciting opportunities, 2) and it allows the company to brainstorm and evaluate the critical actions required to improve the performance of the company. SWOT analysis can be used by the companies to plan for using resources efficiently, improving operations, discovering …show more content…
(Even with so many problems deteriorating the efforts and quality of the project right from the initial phase).
• DIA would be a benchmark for the future airports in the nation.
• Open market competition in the airline industry after deregulation which promised increased revenue for the DIA.
• Experienced personnel from the Stapleton airport would be used in the construction of the DIA.
Some of the weaknesses of the DIA include:
• Lack of commitment and involvement of the leadership in the actual project ongoing, they were more interested in the appearance of the project but not the issues related to the project.
• Lack of proper project management. The team consisted of two companies along with the City of Denver, which proved detrimental as there was no proper communication among the companies. The PMT was not situationally aware of the issues which turned out to be a costly affair and resulted in delays.
• Using different contractors might have been well-intentional, but there were no clear lines of authority and power.
• Feasibility studies conducted but not the SWOT analysis to understand the risks and benefits.
• No involvement of the major airlines in the decision making
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• Modern design and capabilities of the DIA project would set a benchmark for the other airports.
• There were international opportunities as the DIA would be equidistant from Germany and Japan.
• DIA would be the potential hub for Northwest or USAir and might bring in more business to the Denver region.
• Due to the expected increase in air traffic, there will also be increase in enplaned cargo which would bring in more revenue.
• Improved efficiency of the operations and increased capabilities of the Airlines at DIA.
• Automated baggage system would allow the DIA to be involved in advanced technological venture.
Some of the threats to DIA were:
• Too many restrictions and limitations by the Adam County regarding noise levels and development of other businesses.
• Front Range airport competing with DIA regarding air cargo, aircraft repair and commercial as well as general airline traffic operations.
• Recession of 1979 – 1983 still affecting the economic health and environment of the DIA project.
• Delays in agreement of both major airlines- United and continental with the construction of the

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