Continental Airlines Strategic Analysis

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  • Topic: Continental Airlines, Northwest Airlines, Boeing 757
  • Pages : 2 (441 words )
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  • Published : October 3, 2010
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The scope of this analysis is Airline industry and we comprised 5 famous Airline including U.S Airways, Delta, Northwest, United, American, and Alaska with Continental Airline in U.S Airline industry.

EXTERNAL ANALYSIS
OPPORTUNITY
The international flight permit
Given the intense rivalry in the U.S. domestic market, international market offers excellent growth opportunities for the future An international service is generally more profitable. The China and India are the main target market in Asia. Using Winglet technology which help Continental to reduce fuel consumption would give a good opportunity for offering lower price. E-ticket & Online Booking and seat selection reduce the costs of ticket sale and also speeds the check-in and , as such, could improve customer satisfaction Operating performance improved over last 3 years compared to industry average. Many new entrants failed such as independence Airline (failed in 2006), Mesaba & Transmeridian Airlines (failed in 2005)

THREAT
Given the intense rivalry in the U.S. domestic market, international market offers excellent growth opportunities for the competitors Confrontation with oil producer countries like Iran could cause fuel prices to rise Increasing in capital cost and operating expenses due to commitment to reducing greenhouse emissions through getting, relatively new aircraft, winglets installed on fleets, regular washing of planes to reduce drag and etc. Major airlines that went through chapter 11 bankruptcy such as U.S airways, Delta, Northwest and United have emerged as more cost-efficient and competitive with a roader geographic coverage Fuel expenses which is around one third of operating expenses depends on fuel price presenting a serious market risk Recent more restriction on the contents of carry-on baggage contributed to some reduction in bookings and losing customer accordingly Purchasing of replacement places by American and U.S. Airways which could...
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