passenger airlines
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1. What industry conditions impact the level of competitive rivalry among passenger airlines?
2. Please prepare a SWOT analysis for United Airlines paying particular attention to any viable strategies that United uses or could use.
3. What three strategic initiatives should CEO Tilton pursue to address the company's dire situation? Please provide specific information from the case outlining your recommendations.
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SWOT analysis
1. What industry conditions impact the level of competitive rivalry among passenger airlines?
The industry conditions n the airline industry have not been good since 1980. The industry has four or five years of poor earnings preceding five or six years of improvement. However, even when the profitability is good it is still very low. After the deregulation, the intensity of competition increased rapidly When there are difficult times there are large losses. There is a tendency during the better times to lease out more planes during higher demand. Overall the Airlines industry is mature and is currently marked by agreements and tie-ups, alliances, and even equity arrangements.
There is strong rivalry in the industry leading to price cutting. Each airline seeks to grab the market share of other airlines through lower prices. Further, excess capacity in some sectors forces airlines to reduce prices. The industry is marked will relatively lower levels of differentiation. The customer loyalty is low and consumer depends on the selection of destination and price for decision making. The industry has a high level of competition because the
2. Please prepare a SWOT analysis for United Airlines paying particular attention to any viable strategies that United uses or could use.
The strength of United Airlines lies ...
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