TEAM 12

Ryann Thomas, Nicole Banakis, Yufei Han, Mustafa Khaled, Juan Ruiz, Zach Wiygul
TEAM 12 Leader: Ryann Thomas
Organization Description
Business Portfolio
United Airlines, Inc. is a U-S.-based publicly traded airline company that has been in operation since 1926. The
airline provides domestic and international flight services across five continents and competes largely with
roughly eighteen other major U.S. carriers. According to United’s website, the company employs over 84,000
people and operates close to 850 aircrafts. The airline is part of the World’s largest global airline alliance
program: The Star Alliance (United.com, 2022).

Mission/Vision/Values
United’s Mission and Vision is “connecting people, uniting the world.” United’s values are making Diversity,
Equity, and Inclusion a “part of our DNA”, flying right with enforcing operations by way of a moral compass,
flying friendly through providing exceptional customer service to clients, flying together by uniting the world
and its people through quality service, and finally flying above and beyond in achieving organizational goals
beyond the ordinary. (United.com, 2022)

Analysis
The mission/ vision and values presented on United’s website do a satisfactory job at delineating its reason for
existence. The values of the company are inspiring and guide the performance and behaviors of company
employees. United’s mission statement and values are timeless and do not include a measurable deadline.
However, their current values of “fly right, flight friendly, fly together, and fly above and beyond” are
ambiguous and could be confusing to consumers. While these statements are “catchy” and memorable, they
could be more transparent. For example, in lieu of stating “fly friendly,” the airline could provide a more
measurable value such as a specific policy that creates friendly customer service. United could state what
makes the airline “go above and beyond” in comparison to other carriers. In terms of overall adherence to their
diversity values, however, United has delivered on its promise; according to a 2021 Forbes airline survey, the
United board of directors is the most diverse within the industry (Forbes, 2021).

Overall Market Description

Consumers
The airline industry segments consumers into five groups. The five groups are Old Travelers, Business Travelers,
Budget Conscious Travelers, Loyal Travelers, and Urgent Travelers (Aviation Management, 2022). While these
groups differ, they all have similar needs. They would all prefer for an airline to be convenient, comfortable, and
safe. Since business cannot exist without its consumers, airlines are obligated to meet their consumers’ needs.
Airlines are rated by how well they meet the desires of their patrons.

Trends
Market Decline remains the main trend of the airline industry. Given the COVID-19 pandemic, many executives
are no longer traveling internationally and are instead taking part in Zoom meetings. Thus, the overall US airline
industry is suffering in terms of international and domestic business; the current mindset is “this could have
been a Zoom meeting” (New York Times, 2021). Airlines are suffering from the monetary losses due to the
demand in executive travel.

Overall, however, the rate of travel by everyday consumers is beginning to increase after a year and a half of
staying at home. Vacation and family travel are nearing pre-COVID levels. For the year 2022, there are
3,432,000,000 scheduled airline passengers worldwide (Statista, 2022). In the future, the US airline industry
may need to change its goals to better align with trends in the marketplace and new consumers.
Competition Description
Main Competitors
The main competitors of United Airlines are Southwest Airlines, Delta Airlines, and American Airlines. According
to Statista, American Airlines holds 39% of user share, Delta-30%, and United follows third with 27% of the user
share of the top 10 US Airlines (Statista, 2022).

Competitor Strategies
United’s competitors work to market the same products and services. The overarching strategy of American
Airlines is to offer a more extensive selection of destinations as well as to offer the most flights per day. They
differentiate themselves from United with size which leads to easy booking and maximum benefits for their
fliers (American, 2022). Delta’s mission is similar to United: “connecting people and cultures.” (Delta, 2022).
Delta is also a global leader in safety, innovation, and customer service (Delta, 2022). As a result, Delta charges
higher prices. They fly to fewer locations because they are part of a small alliance. American Airlines
differentiates itself the most from United in strategy. Delta is more closely aligned with United in marketing
strategies and they differentiate with price and place.

Strategic Analysis
SWOT
Location of Type of Factor
Factor
Favorable Unfavorable

Internal Strengths: Weaknesses:

-Brand Awareness and Brand Loyalty are -Employees at United are dissatisfied
between 83-84% in the US. (Statista, (Insider, 2018).
2022). - United customer service reputation is a
-Investments in Sustainable Aviation Fuel weakness. This is supported by many
rank united higher in sustainability than publicized poor customer service incidents
other airlines (United, 2022). (Insider, 2018).
-80% of United’s flight school is women
and POC’s, leading the industry in diverse
pilots (United, 2022).
External Opportunities: Threats:
-There are many emerging companies -Government regulation on fuel emissions is
working to create alternative fuel sources. increasing.
- Diversity is a popular trend, which creates -Since COVID, less people are traveling,
an opportunity for United. especially for business.
-Companies like Zoom are an alternative to
air travel.
BCG
A Star is the United App. The app is ranked A Question mark is the up-and-coming air
5th in travel apps according to the App taxi partenership with Archer Aviation.
Store, so it has a large market share. There This partnership will produce fully electric

Relative Market Growth

is also a lot of potential for market growth aircraft for short distance flights (Insider,
with international users. The United credit 2022). United has a small share of the
card and plane tickets are also a stars electronic vehicle market but potential for
(Forbes, 2022) large growth.
Relative Market Share
A Cash Cow is flight services such as food United has several dogs. Travel insurance,
and beverages. United offers the most in websites, and priority boarding are all
flight services on every flight, meaning very saturated product/service markets.
they have a high market share for this United has a small share of them and
service. However, there is low potential for there are not many opportunities for
growth in the market. growth in these markets.

Segmentation, Targeting, and Positioning

Segments
United Airlines has segmented their market into nine groups according to their own psychographic
segmentation. They use social class, lifestyles, opinions, interests, and behaviors of their market; These
psychographic markers are identified through surveys and questionnaires. According to Ward Howell
International, the segments are global executives, schedule optimizers, corporate troopers, mile accumulators,
reluctant travelers, tour takers, quality vacationers, travel seekers, and frugal fliers (Howell, 2016).

Target Market
Global Executives are the target marked of United. They are defined by Ward Howell as consumers that “face
frequent business travel and enjoy it because of the high level of service” (Howell, 2016). This consumer aligns
with the customer service values of United. The Global Executive can be further broken down as a high-income
individual, 30-39 years old, with a family. According to a Global Consumer Survey Brand Report done on United
by Statista, this type of airline consumer is the most dominant segment for United (Statista, 2022). 57% of
United customers are in the highest third of monthly income and 34% of consumers have partners and children.
(Statista, 2022). The Global Executive is targeted with in-flight services such as Wi-Fi and power outlets, booking
services with refundable tickets and changeable dates, and amenities such as a traveler’s lounge and
memberships. (United, 2022)

Positioning Strategy
Overall, the positioning statement is: United wants to be perceived as a company that serves global executives
with the best customer service and the most innovative technological outlook for the future. The company is
currently repositioning towards this idea with a marketing campaign to change the perception of their customer
service away from past scandals (Insider, 2018). United wants to be perceived by their target market as a
company where “Good Leads the Way,” according to their new marketing. (United, 2022).
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