Question

Company: United Airlines

Describe and list three opportunities and three threats regarding United Airlines. Provide details on why.

Provide details on why these are opportunities and threats for United airlines. Provide details on how to strengthen the threats.

Answer 1

Solution:
UNITED AIRLINES
OPPORTUNITIES
1 .	Growing global tourism and travel industry
	Global tourism and Travel Industry growing exponentially. 1.5 billion international tourist arrivals were recorded in 2019, globally. Tourism is a leading and resilient economic sector, especially in view of current uncertainties. Even though Covid -19 is a threat, a successful vaccine can vanish all the uncertainties.
2 .	US economy back on track for growth
	The country's economy has been ravaged by the challenges posed by the coronavirus crisis. More than 22 million people have lost their jobs, as the heavy job creating sectors like travel and tourism has come to a standstill. However US is now back on track for growth. Majority of the economical activities are going smoothly. People are living without fear. All the economic productions are back to normal. Emergence of a successful vaccine also expected soon.
3 .	Growing US airline industry
	Due to Covid Pandemic Airline Industry declined drastically. However it is now showing an exponential comeback. Comparing to the past year performance airline industry showing a super normal growth. This is a very good opportnity for United Airlines.
THREATS
1 .	Losing Market share to low cost carriers
	Obsession with traditional rivals has blinded companies to the threat from disruptive, low-cost competitors. Low cost strategy from copetitors is a big threat. It will lead the company to lose market.
2 .	Rising fuel prices is a challenge
	Rising fuel prices is a big threat to the company. It will lead to affect overall profit margin as well as pricing strategy of the company.
3 .	Persisting risks of recession across the globe
	All the countries is facing very bad situation due to covid pandemic. It created recession in many countries and affected global tourism as well as economical production.
HOW TO STRENGTHEN THREATS
1 .	To overcome the pricing threat company need to monitor the competitor's pricing strategy. It also act accordingly to compete with others. Company should focus every category of customers not to loose the market share.
2 .	Fair dealings must be conducted with the oil suppliers and always keep good relationship with them
3 .	Invention of Covid vaccine may put forward the economy upto an extent.