United Airlines SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of United Airlines, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like United Airlines to benchmark its business & performance as compared to the competitors, and make strategic improvements. United Airlines is one of the leading brands in the airlines sector.
The article below lists the United Airlines SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the United Airlines SWOT Analysis:
In this article:
For United Airlines, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of United Airlines looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of United Airlines :
1. United Airlines is one of the largest US based airlines with a strong operational network with more than 5000 flights a day to 300 destinations across 6 continents
2. United Airlines operates globally via the strategic alliances and it is a founding member of Star Alliance in the aviation industry
3. The company has a strong brand name, legacy and recognition since it was founded in 1926
4. The company has strong financials and its annual revenue is in excess of $40 billion
5. Merger with United Continental Holdings for passenger operations strengthened its position in the aviation market
6. The company has over 90,000 employees world wide working across different functions
7. Great customer experience with inflight entertainment like streaming movies, Wi-Fi, music, onboard meals etc.
8. Good branding of United Airlines is done through extensive advertising via TV commercials, print ads, online ads, social media engagement, digital marketing etc.
9. Its frequent flyer program called MileagePlus offers loyal travelers various benefits like free tickets, vacations, discounts and more
10. United Airlines has invested in environmental practices and reduces use of paper, adopted cleaner fuel, repurpose kits etc.
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the United Airlines SWOT Analysis:
1. Intense competition from other domestic and international airlines means limited market share growth
2. Heavy dependence on third-party service providers for customer service, maintenance, fueling operations, etc.
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in United Airlines SWOT Analysis:
1. Growing US airline industry and tourism can help boost the business of United Airlines in the international & domestic sectors
2. Strong US economy will ensure higher purchasing power of people willing to invest in travel
3. Increasing partnerships with international players, trying to reach to newer & unexplored destinations
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of United Airlines are as mentioned:
1. Intense competition from low cost airlines offering discounted prices can lead to loss of margins for United Airlines
2. Rising fuel prices is a challenge for the aviation industry as it reduces the profits
3. Persisting risks of recession and pandemics across the globe can decline the demand for air travel
There are several brands in the market which are competing for the same set of customers. Below are the top 5 competitors of United Airlines:
Hence this concludes the United Airlines SWOT analysis.
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|United Airlines Overview|
United Continental Holdings, Inc.
Fly The Friendly Skies
Customer focused, flyer friendly airline
|United Airlines STP|
Business, luxury and leisure travelers
High income individuals, corporates houses
Premium airline with high service quality
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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