One of the largest airlines in the world, American Airlines runs in the main cities of America. Its hubs can be found in 9 out of 15 major US cities. American Airlines operates with direct flights to major cities across the globe. Here is an American Airlines SWOT analysis. You can study our recent samples here:
American Airlines SWOT Analysis | Top Aviation Industry
The SWOT analysis of American Airlines is conducted to determine opportunities available for the company to make decisions and solve problems. The business environment is under constant change. The SWOT analysis of this company is to identify strengths (leisure, business, sustainable aviation) and weaknesses (economic downturns, unsatisfactory customer experience, etc). These SWOT analysis tools are divided into environments, both internal and external. Once a company is known to be the best in its market locally, then there is little to no chance of it losing customers.
Internal Environment Elements
The internal environment of the airline company is made of human resources which is in existence because of the managerial system, volunteers, workers, and the target population. Another internal environmental element is the material resource of the company, which is its equipment, company location, and building structures.
Some other elements of the company are planned events and their activities and other loyalty programs. Furthermore, the experience of the company matters a lot in identifying its problems and solutions. Airlines must have a lot of experience to reach viable solutions.
Strengths
The strengths of the airline industry are a fine location of primary hubs, connection to the world market, and a fine number of workers. The space availability, the present equipment, and the allocated duties are also a measure of this air travel industry. Another point to ponder over is how effective this company is and how big its market share is. The company’s equipment such as office furniture and cars is used to motivate workers, which is also a sign of strength of its leisure and business.
The availability of volunteers and workers is a basic reason for their high financial performance. All of their contributions result in the increased efficiency of the company. Whenever American Airlines faces a problem, the exemplary teamwork of their workers provides a solution. The fuel-efficient aircraft with a low-cost travel demand for both domestic and international travel even during the COVID pandemic is an undeniable strength of this company. All of these American Airlines strengths are a sign of pride for this company.
Weaknesses
After strengths, another internal environment element of this company is the weaknesses. There are times when there is a lack of teamwork, a lack of motivation among workers, and a poor management system make up a considerable weakness. There was a notable fall in shares by 10% back in 2015, which may not seem much but it did have its consequences. Any existing weakness gives off the impression that the company is not capable of potentially leading the demands for air travel.
A poor management system can affect business travel for passenger experience and environmentally conscious travellers, which increases the gap in cash flow. This cannot hold up the oneworld alliance of airlines for joint ventures for long. Corruption in American Airlines works as a setback for the company and impacts both internal and external factors. This is not good for business travellers and low-cost carriers. All of these weaknesses together show that American Airlines is not a competitive figure in the global market.
Their competitors are Jetblue Airways, Delta Airlines, and Southwest Airlines. American Airlines is a well-established brand for domestic pursuits but to make a mark on the international stage, the company will have to improve.
External Environment Elements
Opportunities
The SWOT analysis here is built on American Airlines threats and American Airlines opportunities. The opportunities are the positive factors of this airline sector as it allows the airline to efficiently perform in uniform business activities, positive business perception, and market growth. This shows that American Airlines is committed to not repeating business weaknesses.
American Airlines must capitalize on these opportunities for the growth of low-cost airlines. The airline industry heavily depends on opportunities and the more you have them in comparison to your competitors, the better it is for you.
The SWOT analysis reveals that the best way to help the airline is to increase opportunities. This is what gives American Airlines a competitive high. If the owners of this company are serious about helping American Airlines, then they must pay attention here.
Threats
Airlines could be at a disadvantage because of threats. This means that business partners and passengers are reluctant to opt for any airline that operates under constant threats. It can be difficult for the airline to manage well as it leads to operational disruptions. Any competitive airline industry knows how to deal with threats and retain the trust of everyone involved. Competing airlines, especially global airlines, in the matter of commercial airline fleets, is not easy.
Frontier Airlines, Spirit Airlines, or any other did not rise in recognition out of nowhere. Those have made history in the aviation industry because of their trustworthy and competent network. These threats should be tackled well without causing an uproar. Only this approach is suitable for the business model.
American Airlines SWOT Analysis
Interrelationship
The strengths mentioned in the SWOT analysis are used to remove the threats for leisure and business travellers as well as for commoners. These strengths can be used to develop the future stability of American Airlines’ services. In 2022, 2023, 2024, 2025, or beyond; only utilizing the maximum potential of these strengths will positively impact American Airlines’ operating expenses. It is not just this, American Airlines may rise in popularity and success once it adopts these practices well to fight the weaknesses.
These elements of SWOT analysis help us realize that financial stability is necessary to remove weaknesses and promote strengths of the American Airlines. This is how you can control work management and deal with other weaknesses such as the fall of shares and threats. Airline operations cater to a diverse set of benefits. That said, labour disputes can disrupt operations, particularly in Asia-Pacific and Latin regions. Data analytics can help to figure out how to stop these disputes from occurring.
This is the primary purpose of American Airlines SWOT analysis: you learn about strengths and weaknesses this way and find solutions to any problems provided here. Any well-wisher and active worker of this company must go through this analysis once more to help the company build its name further.
Conclusion Of American Airlines SWOT Analysis
American Airlines’ position on a domestic level is being challenged by global airlines. American Airlines must capture the opportunities at its doorstep to build its strengths to overcome its weaknesses. Utilizing the advantages, the company can overcome its negative factors and maximize the positive aspects. By reducing its weaknesses, American Airlines can invest to the point where it could become a leading figure in the aviation industry.
If the company does not adopt these practices, then it will eventually be outrun by the better contenders in the market. The SWOT analysis for American Airlines gives us a fair share of an idea about the strengths and weaknesses of the company. Also, it offers an insight into what can be done to increase those strengths and avoid weaknesses.
Related Samples
No Plagiarism,No AI Top Grades Guaranteed