an example from the net....
This research performs a SWOT (strengths, weaknesses, opportunities, and threats) analysis on the UAL Corporation. As UAL is a holding company, and as United Airlines is the principal operating company within the organization, the SWOT analysis is based primarily upon United Airlines. In addition to the SWOT analysis, the company's current strategy is assessed, suggestions for improvement are offered, and fiveyear projections for the company are presented.
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.
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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.
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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.
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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,
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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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The strengths, weaknesses, opportunities or threats internal to a company represent the strategic environment known as a SWOT analysis (QuickMBA, 2004).
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Some of the advantages that American Airlines has in comparison to its competitors are (American Airlines, 2005):
Recognizable brand name
Largest global airline in terms of passenger traffic
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National and International routes serving all corners of the globe
Perception as a major carrier with the commensurate levels of service
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internal flight amenities draining profits
inability to compete with low fare carriers on price
lack of competitive pricing to attract casual traveler base
vulnerability to pricing
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Opportunities (American Airlines, 2005).
code sharing agreements with domestic and international airlines
SABRE ticketing system
Presence at most airports
American Eagle regional routes
Lucrative route structure
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thin operating margins favoring low fare carriers
public acceptance of low fare carrier concept
customer quality perception of low fare carriers that exceeds the majors
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prolonged slow economy favors low fare carrier pricing structure
segmentation of the industry into business and discount carrier classifications
high fuel prices