United Airlines
Selection of and Justification for Alternatives
Competition
There is no doubt the advent of readily-obtainable pricing and availability for airline travel via the internet has changed competition drastically. Not only are customers able to search and select flight times and destinations from each individual airline’s own website, but they now also have the ability to compare everything regarding the flights from plane types, durations, layovers, connecting flights, additional fees and fares on independent travel booking sites such as Travelocity and Expedia; with multiple carriers listed side by side. For this reason, United Airlines has no choice but to implement a strategy involving their marketing which creates a positive view of the United brand. The textbook defines strategy as “an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage” (Hitt, Ireland & Hoskissin, 2011). United Airlines strategy is quite similar to its major competitors, but also attempts to cater to sought-after services discovered from intense market research. “Travel Options by United” was a program introduced in 2008 to accommodate customer’s growing need for more personal and flexible demands. Although customers must pay extra for these amenities, the demand has proven customers value them highly and will utilize a carrier that provides them. Available services from another strategy, Premium Service (PS), include lay-flat seating, door-to-door luggage service, complementary food and beverages and several other options (p.s. 2012). These promotions have not only generated additional revenue for United, but also loyalty amongst travelers while preventing their departure to discount airlines.
Technological Changes There are numerous reasons to blame for the sharp decline in the number of business airline travelers. Advancements in video conferencing and email correspondence allow transactions and meetings to
Competition
There is no doubt the advent of readily-obtainable pricing and availability for airline travel via the internet has changed competition drastically. Not only are customers able to search and select flight times and destinations from each individual airline’s own website, but they now also have the ability to compare everything regarding the flights from plane types, durations, layovers, connecting flights, additional fees and fares on independent travel booking sites such as Travelocity and Expedia; with multiple carriers listed side by side. For this reason, United Airlines has no choice but to implement a strategy involving their marketing which creates a positive view of the United brand. The textbook defines strategy as “an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage” (Hitt, Ireland & Hoskissin, 2011). United Airlines strategy is quite similar to its major competitors, but also attempts to cater to sought-after services discovered from intense market research. “Travel Options by United” was a program introduced in 2008 to accommodate customer’s growing need for more personal and flexible demands. Although customers must pay extra for these amenities, the demand has proven customers value them highly and will utilize a carrier that provides them. Available services from another strategy, Premium Service (PS), include lay-flat seating, door-to-door luggage service, complementary food and beverages and several other options (p.s. 2012). These promotions have not only generated additional revenue for United, but also loyalty amongst travelers while preventing their departure to discount airlines.
Technological Changes There are numerous reasons to blame for the sharp decline in the number of business airline travelers. Advancements in video conferencing and email correspondence allow transactions and meetings to
References: 2012, p.s. Offered on all flights between New York (JFK) and Los Angeles (LAX) or San Francisco (SFO), http://www.united.com/web/en-US/content/travel/inflight/premiumservices.aspx, October. Hitt, M. A., Ireland, R. D., & Hoskinsson, R. E. (2009). Strategic management: Competitiveness and globalization. Mason OH: South-Western Cengage Learning. Shaw, S. (2007). Airline Marketing and Management. Burlington VT: Ashgate Publishing.