SWOT Analysis of UAL Corp.

In a SWOT analysis, the strengths and weakenesses relate to the organization's internal environment, while the opportunities and threats relate to its external environment. Identification of the opportunities available to an organization, and of the threats to an organization, thus, require an assessment of the external environment. In performing this SWOT analysis on UAL, the external environment is assessed first, and this assessment is followed by an identification of the opportunities available to the organization, and of the threats to the organization, which is followed, in turn, by an identification of UAL's strengths and weaknesses.

United Airlines operates in the passengercarrying segment of the air transportation industry. There are three components of the passengercarrying segment of the airlines industry. At the top, there are the major trunk airlines. In the center, are the regional carriers, and, a

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re (1) charged for the use of 5such facilities, and (2) are required to furnish them. In the personnel area, compensation costs are among the highest for any industry, and personnel training costs are also enormous. Although both airline companies and governments continually downplay any speculation about increasing accident frequencies in air transportation, other factors tell a different story. As an example, insurance companies around the world are raising rates for airline companies. The insurance companies justify such increases on the basis of a rising incidence of severe airline accidents. The result will likely be a tighter squeeze on airline profits, an eventuality which (ironically) may result in less money being spent by the airlines on maintenance and crew training. The critical mass strategy adopted by United Airlines and other major carriers is a financial strategy, as well as a marketing strategy. By building a small number of increasingly large companies within the industry, the major trunk carriers create a formidable barrier to entry for new airline companies. The fundamental objective of airline deregulation in the United States was a simple one: to permit the airline
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Approximate Word count = 2386
Approximate Pages = 10 (250 words per page)