General Company

Description & Background

-United Airlines is a major U.S. airline that is
headquartered in Chicago, Illinois.
-Worlds largest airline
-It provides service to all continents except
Antarctica.
-Founded in 1926, as Varney Airlines
-Renamed Boeing Air Transport in 1927
-Eventually became an independent company in
1934
-Member of Star Alliance (largest airline alliance in
the world w/connections to over 170 countries)

Strategic Focus & Plan

Their mission statement is:
To be recognized worldwide as the airline
of choice.
-They focus on achieving sufficient profit to
deliver a critical service.
-United works to reduce their impact on the
environment (United Eco-Skies) by leading
fuel-efficient flights

Competitive Advantages
-helped to advance the use of
alternative fuels
-committed to supporting diversity
through programs and organizations
that benefit their community
-they have loyal partnerships with
well-known organizations (March of
Dimes & American Cancer Society
-highly trained staff for emergencies

SWOT Analysis
Strengths:
strong operational network with about 87,000
well-trained employees
very diverse with 39% of its workers who are
ethnic minorities and 44% of them are women
training program for employees (online too
and first airline to start security training)
main hub centrally located so its a good
distance to all other hubs and spokes
(financially)

SWOT Analysis
Weaknesses:
only having one main hub (for whole
country)
arrival and departure times (due to
size of airline)
bigger planes allows more crammed
seating

SWOT Analysis
Opportunities:
economy was low, now able to
bounce back & be successful
spring and summer seasons allow for
bundling
long term contract with the Union to
secure loyalty & fixed costs

SWOT Analysis
Threats:
fear of planes due to past terrorist
attacks
employees may not be treating
customers right (Union)
smaller airlines undercutting their
prices

Industry Analysis
rivalry among competing sellers are high
airline industry is very consolidated so the chance
that smaller airlines are going to be bought out, or
merged, is most definitely there
chance that new competitors are going to enter the
industry is pretty low because each airline that is
currently popular already has their name out there
There are substitutes (buses, trains, cars) but few
competitive pressure from substitute standpoint
People will cut back from using the airlines if they
have to, for economic reasons (for the most part,
dont need to worry)

Competitors
United Airlines competitors would
consist of Southwest Airlines, US
Airways, Delta, and American
Airlines.
Each airline has their differences with
advantages and disadvantages but
these are some of the top rated
airlines according to Forbes.

Company Analysis

organizational culture:
United Airlines has a clear
and concise organizational
culture. The airline has a
customer commitment
that states:

United Airlines Customer

Commitment

Advise about lowest available fares.

Notify customers of known delays, cancellation, and diversions.
Deliver baggage on time.
Allow reservations to be cancelled for a certain period of time after
purchase.
Provide prompt ticket refunds.
Properly accommodate passengers with disabilities and other special needs.
Meet customers essential needs during lengthy tarmac delays.
Treat passengers fairly and consistently in cases of overbooking.
Disclose cancellation policies, loyalty program rules, aircraft seating
configuration and lavatory availability.
Notify customers about travel itinerary changes in a timely manner.
Ensure responsiveness to customer complaints.
Provide services to mitigate inconveniences resulting from cancellations
and misconnections.

Company Analysis (contd)

BCG portfolio analysis: United
Airlines would be considered a star
because right now, they do have a
high share of high growth markets.
Right now, they are successful and
have a steady market.
Which type of good are you
marketing?
Nondurable good

How does the marketing mix effect

it?
United Airlines is heavily influenced by price of
the airline industry and its competitors
It has to maintain market equivalence with
competitive airlines.
Promotions effect the airlines through the
frequent flier program which maintains current
customer base through loyalty and also attracts
new potential customers. (free trip)
Place effects United Airlines through the huband-spoke system (allows customers to fly
directly or indirectly)

Where is new product in product

life cycle?
the maturity stage of the life cycle
business is pretty steady (business
people are repeat purchasers)

What do you think the life cycle will

be like?
life cycle will be normal
Airlines are such huge businesses
(continue to be successful)
very consolidated market (successful
w/ new name or not)

What stage are your existing

products and competitive
products in?

From a company standpoint, it is at a

maturity stage.
competitors are pretty much all in
the competitive stage as well
smaller airlines (not @ mature stage
yet) not quite big enough to become
as successful as United Airlines and
its main competitors

How will your marketing

plan reflect this stage?
growing and getting larger
consolidating of the airlines could
very much help United Airlines (more
customers & business)

What branding strategy will you use?

United Airlines uses the multiproduct
branding strategy, using one name
for all of their products.