Presentation Transcript
HISTORY: HISTORY
1920’s - United Airlines Transportation Corporation
1931 - UAL management company
1934 - Airmail Act
Financial condition: Financial condition
Management changes and misguided forecasts
Ordering too many airplanes
Employee ownership
July 12, 1994: plan to be largest employee owned corporation
EPS and growth
Slide4: Industry Environment and Five Forces Evaluation throughout history
Competitors
New Entrants, Entry barriers
Substitutes
Suppliers
Buyers
Slide5: Diversification and Integration
Air Canada
Buytravel.com
Macro Environment
Local
National
Global
Slide6: “To be recognized worldwide as the airline of choice.”
Tangible resources (land buildings, plants or equipment).
Intangible resources (brand names, reputation, patents and technological or marketing know-how)
Slide7: Intangible resources.
UAL.com
Downloadable Flight Timetables
Flight Paging
Slide8: “Customer Service Best Practices” = Differentiators
Mobile Chariots
Gate Readers
Bulls eye
SkyPath Program
Aircraft Scheduling Automation
Project (ASAP)
Slide9: Organizational Culture
Safety
Enhanced Ground Proximity Warning System (EGPWS)
Reinforcement of all cockpit doors
Olympic Security Measures
U.S. Air Marshals
Innovation
Open Communication
Ownership
Current Strategy: Current Strategy Business-level Strategy
Economy Plus
Mileage Plus and with VISA
Global Strategy
Star Alliance
Corporate Strategy
Launch business-jet business
Evaluation of strategic fit with internal organization: Evaluation of strategic fit with internal organization United employees own over 50% of UAL
The pilots alone own over 25% of UAL’s common stock
Recommendations for UAL: Recommendations for UAL September 11, 2001
Maintaining Competitive Advantage
Customer Responsiveness
Cost Reduction
Security