Industry Analysis: American Airlines Bailey Anderson, Angela Chavez, Tucker DeVinny

Creating Blue Oceans American Airlines identifies as a Red Ocean Business While this is not typically a pulling business, AA has been able to apply the right strategies to become successful

The Concept of Strategy American Airlines Competitive Strategies: AAdavantage Price Matching with Low Cost Carrier competition These strategies increase revenues and their competitive advantage

Industry Analysis American Airline's SWOT Analysis: Strengths: Loyalty flyer program Weaknesses: Limited number of aircraft suppliers Security concerns Weaknesses = Opportunity

Resources and Capabilities Productive assets owned by the firm Tangible Fleet of airplanes, financial resources provided by shareholders/investors Intangible Brand name, relationships Human Employees, communication process, motivation of the company Capabilities: What the firm can do with those resources

The Nature and Sources of Competitive Advantage American Airline's Competitive Advantages Rewards programs/Cost advantage Strong domestic presence in U.S. Differentiation Oneworld Alliance Luxury care at all price points The Nature and Sources of Competitive Advantage

Corporate Strategy Main focus Commercial flying with a small amount of cargo transportation Scope of the firm Narrow because they are in a specialized industry Global company with flights worldwide Selling tickets directly to their customers Considered a star in the BCG Matrix

Industry Evolution and Strategic Change Many changes shifting from traditional to modern Faster, more efficient aircrafts These changes are critical to stay above water in competition

Technology-based Industries and the Management of Innovation AA relies on technology to run efficiently Technology provides ease throughout the entire traveling process Exploits innovation using strategic alliances Not much room to be a leader of innovation within industry Is able to minimize risk with current strategy

Global Strategies and the Multinational Corporation Internationalization: More Competition = Lower Profitability --> Minimize competition by using global strategies Oneworld Alliance keeps American Airlines in the global competition