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SWOT Analysis at American Airlines, Inc.

Strengths
* The world largest airlines
* The heart of almost every innovation, from discount fare to frequent flyer
* Wide and Large channel of distribution and subsidiaries offices
* World-Class Customer Service (SABRE Group)
* The Leader of Market share in the Airlines industry
* Modern computer reservation systems and Modern Baggage Handling
* Strong Image Brand/Well perception
* Rapid growth and Ambitious expansion plan (look at the chart below)
* Alliance between AA and British Airways will be a powerful force. They together control 60 % of flights between the UK and the US.

Weaknesses
* Human Resources trouble. There are 2 major strikes since 1993. The first one was happened in 1993 when the Association of Flight Attendants went on strike. The second one was the Allied Pilots Association threat’s strike in 1997.
* Financial trouble which is caused by the over-expansion of the increasing fleets
* The big mistakes that its CEO/Chairman has already done, such as over-expansion, cost cutting Union contracts (that caused 2 major strikes in the last 5 years) and the conversation between AA’s CEO with Chairman of Braniff, Inc that produced an anti trust law suit from Justice Department.
* Unclear Market Segmentation: Business travelers or Pleasure travelers.
* Failure to manage its cost resulted AA lost its profitability in recent years
* Low Overall Satisfaction Service Rating Index(Source: Consumer report, July’91)

You can find the Opportunities and Threats at the link if you're interested

2007-11-16 17:51:34 · answer #1 · answered by Sandy 7 · 0 0

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2016-10-17 01:19:19 · answer #2 · answered by Anonymous · 0 0

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