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Taking A Look At American Airlines

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American Airline (AA) was founded by C.R. Smith in 1930 originally starting as a carrier of U.S. mail from St. Louis, Missouri, to Chicago, Illinois. After the creation of the DC-3 in 1936 the airline changed to a passenger airline carrying passengers from New York to Chicago. In the 1940s, operating American Overseas Airlines and established maintenance and engineering base in Tulsa, Oklahoma. American Airline serves nearly 6,700 flights daily per day to 339 destinations in 54 countries from hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. (American Airlines, 2016) American Airline is considered to be one of the largest airlines in the world. During their third quarter of 2016, they profited pre-tax $1.2 billion and net profit of $737 million.
While American Airline is profiting there are still external factors challenges that they face. Opportunities external factors are providing advance services for the consumer, the international market increasing as more consumer travel by air. Also, there is the increase of advancing technology that requires them to upgrade to sustain current customers. Reaching web base consumers is a challenge through advertising, public image of the company and environment awareness with global warming, increase travel both …show more content…

As stated by Porter (1985), competitive strategy establishes profitable and sustainable advantage that determines competition. .Because so much competition exists amongst airlineddepends on the customer preference and spending habits due to threats of outside sources Porter’s Five Force Analyses would provide the company insights into what challenges and help devise a plan to meet these challenges. In the airline industry there are many threats that will be problems as presented in a five force analyses

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