Question

Identify United Airlines external opportunities and threats. Construct and explain the External Factor Evaluation (EFE) Matrix.

Construct a Competitive Profile Matrix (CPM). Include at least eight factors and two competitors

Answer 1

ANSWER:

Opportunities of United Airlines:

· United airlines can increase their capacity and improve capability.

· Increase Market share

· Competitive advantage through product differentiation

· Superior quality and customer responsiveness

· Continuous Innovation

· Segmentation to allow to compete for all potential customers

· Diversification

Threats of United Airlines:

· Maintain and retain the trained employees

· Retain and attract Customers more and more

· Losing market share due to intense competition

· Multiple public issues

-External Factor Evaluation Matrix

External Factor Evaluation Matrix
Key External Factors	Weight	Rating	Weighted Score
Opportunities
1. United airlines can increase their capacity and improve capability & Increase Market share .	0.11	3	0.33
2. Segmentation to allow to compete for all potential customers & Diversification	0.09	1	0.09
3. Competitive advantage through product differentiation	0.24	2	0.48
4. Superior quality and customer responsiveness & Continuous Innovation	0.10	1	0.10
Threats
5. Maintain and retain the trained employees	0.17	4	0.68
6 Multiple public issues .	0.03	2	0.06
7. Losing market share due to intense competition	0.14	3	0.42

Competitive profile matrix:

Competitive Profile Matrix(CPM)
		Competitor-1	Competitor-2
Critical Success Factor	Weight	Score	Weighted Score	Score	Weighted Score
Product Varieties	0.1	1	0.10	3	0.30
Product differentiation	0.1	4	0.40	3	0.30
Location	0.05	1	0.05	1	0.05
Brand Image	0.25	4	1	4	1
Customer Faith	0.05	3	0.15	1	0.05
Sales & Marketing	0.25	4	1	1	0.25
After Sale Service/customer Service	0.1	4	0.40	1	0.10
Employee Satisfaction	0.1	2	0.20	1	0.10
Total Score	1		3.3		2.15