Continental Airlines Case Study

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Airline Company Merger

PART A
Discussion on question one:
The merger between United Airlines and Continental Airlines experienced some significant challenges. The principal challenge was to integrate the flight information of the two systems. One fear that was evident was losing the data during the incorporation, which were vital for the flight 's operations). However, the technicians established that Unimatic (United 's Information system) was capable of handling the data from both airlines.
Therefore, the technicians had to run a flight-testing to determine if the system was fully ready for data transfer. The testing was successful, and on 2nd November 2010, the system was shut off for one and a half hours. The transfer was a success …show more content…

Airline merger should look into improving the customer satisfaction basis to attract more customers.
Thirdly, the threat of new entrants; the higher the competition, the easier for other companies to enter. Next is the threat of substitutes; that is other products with lower prices of improved performance parameters for the same purpose. It reduces potential sales volume for existing players.
Lastly, is the competitive rivalry; which describes the intensity of competition between existing players. Higher competitiveness regarding pressure on prices and margins resulting in reduced profitability for every company. The risk for United Continental Airlines would be with the other emerging airlines thus it becomes so hard to convince customers if your services are not good; hence you lose them to your competitors.
Strategies can be applied to any products or services in all industries, and to organizations of all sizes. Creating and sustaining superior performance is what the United Continental Airline is supposed to carry out for its future endeavor and …show more content…

Besides, the approach allows for an understanding of the needs of the customer and developing low-cost products for the market. Also, the strategy allows for a focus on the brand and creating a unique product. United Continental Airline should strategize on these three approaches and build a secure network to facilitate its rollout for the betterment of the company. (Harvard Business Review 2008).

References:

Rainer, RK, Prince, B & Watson, HJ 2013, Management information systems: Moving business forward, 2nd ed. Australia: John Wiley & Sons Ltd, p 70-71
Mouawad, J., & Merced, MJ 2010, United &Continental Agree to $3 Billion Merger. Nytimes.com viewed 8 Dec. 2016
Carey, S & Nicas, J 2015, United Continental Still Shaky Five Years After Merger. WSJ viewed 9 Dec. 2016
Cederholm, T 2014, United Continental 's must-know targets for future efficiency gains - Market Realist.com viewed 10 Dec. 2016
Harvard Business Review 2008, The Five Competitive Forces That Shape Strategy, online video 30 June, viewed 11Dec. 2016
< https://www.youtube.com/watch?v=mYF2_FBCvXw>

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