SWOT Analysis American Airlines
The SWOT analysis is a widely used tool used to scan the internal and external environment to achieve a systematic approach and support for strategic decision-making (Ebonzo Menga, Lu & Liu, 2015). An organization strengths and weaknesses can be identified by examining internal factors. The opportunities available to the organization and the threats it faces can be determined by examining external factors (Simoneaux & Stroud, 2011).
Recent merger with US Airways provides cash inflow
Recently replaced 10% of their fleet with new aircraft
Significant presence at busy air hubs enables flights to over 250 destinations daily
Very successful frequent flyer and customer loyalty program Weaknesses
Limited number of suppliers for aircraft and aircraft parts
Newly acquired aircraft carry significant debt …show more content…
Pre-merger, American Airlines has over $800 million in labor costs, some of the highest in the industry, they were able to reduce labor and pension expenses while under bankruptcy protection (Bolte, 2014). Post merger labor and pension costs are still a significant expense. American Airlines will need to balance its desire to control these expenses with its desire to attract and retain good employees.
Having good employee is an essential part of keeping customers satisfied. As an organization that sells a service, every decision that American Airlines makes should keep in mind its customers. Providing customers what they want in order to keep them satisfied must be balanced with the cost of providing those amenities. During the economic downturn, American Airlines experienced a decline in customer satisfaction.
Opportunities exist in areas where growth or increase profitability are possible. Threats are external forces that can cause a downturn in the organization. (Simoneaux & Stroud,