Case
Study 2: United Airlines
Read
the case study located on page 421 of the section titled Case Studies in
your textbook and prepare a 3- to 4-page report in a Microsoft Word document,
based on the following situation. You could append this report to the report
you prepared for Case study 1.
As
the industry watches to see how United Airlines' strategy performs against
American Airlines' strategy, management at United Airlines is anxiously
monitoring market signs to determine its next competitive move. It has
underestimated American Airlines in the past, and despite the fact that with
billions of dollars invested and strategies that cannot be easily abandoned,
United Airlines needs to be prepared to respond to changing industry needs as
quickly as they are detected.
You
have been asked to join a strategic planning discussion, and hoping to
contribute to the meeting, you decide to take one more look at United Airlines'
situation to see if you can formulate some insight that could give the company
an edge against American Airlines.
Your
analysis should include the following elements:
- Compare the two competitor's strategies.
Based on your knowledge of the industry, what conclusions can you draw?
- Outline a rough competitor
analysis. What does the level of interdependence between the rivals reveal
about competitive behavior that can be expected from American Airlines?
- Evaluate the pros and cons of
United Airlines outsourcing strategy. Do you agree with the company's
decision to offload parts production?
- Review United Airlines cooperative
strategy. What are the risks of its partnership arrangements?
- Discuss the ways in which United
Airlines can improve international strategy.
- Identify and describe some of the
near-term and long-term results you anticipate in the airplane production
industry.
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