Situation Analysis 3
Strengths, Weaknesses, Threats, and Opportunities 4
Pricing Strategy 8
Service Marketers 9
In this case study we will review the new strategic business plan of American Airlines, and how they are responding to changes in the marketplace to compete in the modern era. We will also analyze the advantages of rebranding efforts, the effectiveness of existing practices of the airline and how the airline may operate post merger with US Airways. By some measurements, the merger between American Airlines and US Airways will create the largest company in the world, thus positioning American Airlines to potentially become the most …show more content…
The brand of American Airlines is also known for being an economy based airline with sub standard service rendering the name of the airline a weakness.
Just a few years ago American Airlines was struggling, poor relations with costumers, outdated media outreach, aging aircraft, new popular low-cost airlines, and disputes with staff made the consumer experience awful. In 2011, the then bankrupt carrier had to cancel hundreds of flights due to pilots calling in sick; this was not due to a flu epidemic, pilots were angry over forced contracts that cut pay and benefits for employees. Those who did show up, often canceled flights due to the results of last minute inspections conducted by the pilots. This non-strike approach crippled the airline with four times the typical cancelations (Hoffman, 2012). Leading to a skydive in consumer satisfaction. Reviews through then new social media vectors created a word of mouth disaster for the airline. Posts from the eta like “on a flight to Miami in November 2011, the gates were under-staffed, the plane was old ( It actually creaked!), the flight attendants were unfriendly, upcharges for seats and baggage were rampant, and pilots were not on time” (Lillianna368, reviewcenter.com 2012) mentioned common themes in reviews for the airline. On Reviewcenter.com, the airline holds a 1.4 out of 5 stars. A limited view of marketing, Lack of strong competition,