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Case Study Of United Airlines And Continental Airlines

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United Airlines and Continental Airlines, two major airlines companies, agreed to a merger that would create the world’s largest airline. Such important deal has a lot of problems to be dealt with, from technical, for example how to put the companies databases together, to more fundamental, like how the company should be ruled. The three major challenges that arose after the merger were the following: firstly, the companies needed to integrate their flight information systems. Secondly, they needed to integrate their passenger information systems. Finally, there was a need to reconcile both airlines speedup-slowdown algorithms. The integration of flight information system was needed so that the information about flight of previously separate …show more content…

He invented Generic Competitive Strategies that are vital to compete in any industry. His strategies are: cost leadership strategy, differentiation and focus, which is divided into cost focus and differentiation focus. If one company is to follow the cost leadership strategy, it should try to increase its profits by reducing costs and charging average prices. The differentiation strategy is an opposite way – the company that follows this strategy often has higher prices for its services, but it is different and more attractive than its competitors. Focus strategy means that the company that follows it concentrates on some niche market. The division of focus strategy means that one companies can try to be successful in cost leadership, while focusing on a niche market and other companies will follow differentiation strategy. Michael Porter also invented competitive forces model. This model allows us to understand why, for example, the airlines industry is the least profitable one. It has an easy market entry, so there are a lot of different companies, and customer has to choose one, but it is difficult for him to differentiate between different companies, so the customers just chooses what is the most convenient for him at the current moment of time. There is an intense competition because of

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