American Airlines Strategy Analysis
INTERNATIONAL BUSINESS
COURSEWORK 1:
The US Airline Industry in 2004
Sommaire Introduction 3 I. The External Analysis 3
1 The macro-environment 3
2 The micro-environment 5 II. The Internal Analysis 7
1. SWOT analysis 7 III. The Strategic choices 9
1. The Bowman’s strategy clock 9
Introduction
The US Airlines market experiences ups and downs, and different phases; for example the period of regulation up until 1978 and the period of deregulation.
The US civil airline was created in 1920, but in those days, for deliver mail, it was after 1930 that began the competition and new entrants came. Then the US airlines grew, and became very important, were created CAB and FAF to strengthen the security. The deregulation has had a significant impact in the 80’s; there was a wave of new entrants and an upsurge in price competition. The financial crisis came at the same time, which provoked the bankruptcy, mergers…
Many companies have experienced lot of setbacks, as the crisis, the staff strikes, but also the arrival of low cost companies in the market.
To begin we will focus on the external analysis of US Airlines industry, realize thanks to two models, “PEST analysis” for the macro-environment and the “Five forces of PORTER” for the micro-environment. Then we will talk about the internal analysis, with the “SWOT” model; carry out from the different strength/weaknesses and opportunities/threats. We will finish with the strategic choices, in third part.
I. The External Analysis
The macro-environment
To begin the external analysis I will use the P.E.S.T model. This policy tool allows evaluating the influence of external factors on Airlines Company.
* POLITICAL:
* The CAB: civil aeronautics board was established by Congress, for restrict or eliminate the competition.
* Federal Aviation Administration, the national aviation authority was created in 1958 following an aircraft collision. It has authority to regulate
COURSEWORK 1:
The US Airline Industry in 2004
Sommaire Introduction 3 I. The External Analysis 3
1 The macro-environment 3
2 The micro-environment 5 II. The Internal Analysis 7
1. SWOT analysis 7 III. The Strategic choices 9
1. The Bowman’s strategy clock 9
Introduction
The US Airlines market experiences ups and downs, and different phases; for example the period of regulation up until 1978 and the period of deregulation.
The US civil airline was created in 1920, but in those days, for deliver mail, it was after 1930 that began the competition and new entrants came. Then the US airlines grew, and became very important, were created CAB and FAF to strengthen the security. The deregulation has had a significant impact in the 80’s; there was a wave of new entrants and an upsurge in price competition. The financial crisis came at the same time, which provoked the bankruptcy, mergers…
Many companies have experienced lot of setbacks, as the crisis, the staff strikes, but also the arrival of low cost companies in the market.
To begin we will focus on the external analysis of US Airlines industry, realize thanks to two models, “PEST analysis” for the macro-environment and the “Five forces of PORTER” for the micro-environment. Then we will talk about the internal analysis, with the “SWOT” model; carry out from the different strength/weaknesses and opportunities/threats. We will finish with the strategic choices, in third part.
I. The External Analysis
The macro-environment
To begin the external analysis I will use the P.E.S.T model. This policy tool allows evaluating the influence of external factors on Airlines Company.
* POLITICAL:
* The CAB: civil aeronautics board was established by Congress, for restrict or eliminate the competition.
* Federal Aviation Administration, the national aviation authority was created in 1958 following an aircraft collision. It has authority to regulate