American Airlines Porter's 5 Forces

3023 Words13 Pages
Environmental Scanning Customers American Airlines has a diverse customer base ranging from casual travelers, business people, cargo dealers, and international tourists. For this reason, the company welcomes expansive customer feedback in order to modify their products and service offerings to better suit the customers' specifications. Customers prefer American Airlines because they operate approximately 6700 flights daily, which gives customers a variety of flight choices and times that can accommodate their schedules (American Airlines, 2012). In addition, customers prefer American Airlines because the company provides safety and comfort as well as providing convenient travel times. Most American Airlines customers are either middle class…show more content…
Tangible resources are usually easily quantified or have the ability to be touched. Intangible resources are more difficult to classify but usually are the employees, a company’s brand, and intellectual capital. Due to financial difficulties, management at American Airlines made the decision to go through structural changes to remain competitive in the aviation industry. “We entered 2012 with a clear commitment to succeed in our restructuring, armed with a thorough evaluation of our competitive space and industry trends. We knew that as part of our overall targeted financials improvements of more than $3 billion, a third of those savings would come from employee related cost reductions” (Working through the restructuring process). American Airlines estimated that they would need to cut approximately 20% of the workforce to reach the levels needed to remain competitive (Working through the restructuring process). American Airlines was able to achieve labor cost reductions in various work groups by going through with restructuring the business, which has allowed to the company to allocate financial resources to other areas of the…show more content…
They have implemented two strategies to reduce these greenhouse gas emissions. The first strategy is fuel conservation. In 2007, American Airlines was able to reduce their jet fuel gallon per revenue ton from 0.1861 to 0.1855 (AMR Corporation, 2007). The reduction in fuel consumption should reduce greenhouse gas emissions released by American Airlines planes each year. The second strategy is to implement a Fuel Smart Program. The program has helped save 96 million gallons of fuel and 918,496 metric tons of CO2e from being released into the environment (AMR Corporation, 2007). American Airlines is taking proactive steps to reduce their impact on our environment and are a great example for other companies to
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