Strategic Management and Strategic Competitiveness example

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American Airlines


American Airlines is the largest air company in the US after its merging with US Airways. It works at the market since 1930. The company got the profit of $ 1.1 billion in 2014 (American Airlines, 2014). In our work we will discuss the factors which impact the overall success of the company.

Thesis: The global commitment, environment and economic responsibility, use of new technologies, strong mission and vision statement, application of industrial and resource-based organization model to determination above-average returns, and all stakeholders have a great influence on the company’s success.

Main Body

The impact of globalization and technology changes on American Airlines.Globalization and technology changes have a great influence on American Airlines. First of all, globalization requires from the air companies increase the number of destinations and the number of flights, since millions of people began to go on air to the farthest corners of the world for different purpose and the amount of cargo transported from one country to another increased dramatically. Thus, American Airlines carry more than 100 million passengers and more than 500,000 tons of cargo a year (American Airlines, 2008). It plays a significant role in the development of the global commerce, trade, and economic prosperity. On the other side, globalization influences the service of the company. It is important to remember about the principles of diversity and equity by working with people of different nationalities.

Besides, the increase of flights affects the environment, so the company should have developed a strong program about the environment protection. Secondly, the rapid growth of technologies requires constant investments in the technological innovations which will help the company to overcome the rivals. The technology changes allow American Airlines to increase the speed of the flights, comfort and safety of the customers and employees, and reduce negative impact of the travelling by air on the environment. Thus, the company works with Boeing and Airbus suppliers which recently began manufacture of fuel-efficient engines. Then, American Airlines was the first air company which installed automatic identification technology, the security detection tool. The industrial organization model and the resource-based model applied to American Airlines for determining above-average returns.In order to determine above-average returns, American Airlines can apply either resource-based organization model or the industrial organization model.

First of all, the company can use internal resources of the company in order to attract the customers. Thus, the company has more than 100,000 employees, 1,500 aircrafts, and it can fulfill more than 6,700 flights a day to more than 330 destinations (American Airlines, 2013). Besides, American Airlines improve the quality of the services by applying new technologies. It will help to overcome the rivals, since most of the companies have less destinations and aircrafts. Then, the company has a strong brand image and high quality of customers’ service. Finally, it provides a great program of bonuses for customers. It also can be used for resource-based model strategy. On the other side, American Airlines …

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