Lucas Hepner, Noah Hearn, Tino Diaz, Antonio Bartolome

Company Overview:

Company History:

1926: United Airlines founded when several airlines merged.

WWII: Helped modify airplanes to be used as bombers.

1961: Merged with Capital Airlines, became 2nd largest airline in the world.

1981: Frequent flyer program released (Mileage Plus)

September 11th, 2001: Bankruptcy & Rebound (United Airlines, n.d.)

Company Size:

86,852 employees & 721 aircraft

Market Cap: $21.9 Billion (United Airlines, n.d.)

Company Location:

Willis Tower located in Chicago, Illinois

9 Airport Hubs Houston largest hub (United Airlines, n.d.)

Improving Performance

William Boeing: Let no new improvement in flying and flying equipment pass us by
(William Boeing quotes, n.d.)

Mileage Plus Program

12 new routes being served by 21 new aircraft (this year)

Increase performance in several areas of our company

Mediocrity is failure

Areas To Increase Performance

Millennial Retention:

Forbes: Ninety-one percent of Millennials expect to stay in a job for less than
three years. (Meister, 2012)

Decreased training costs & Secure Millennial Talent

Social Media Usage:

Increase in customer retention & brand loyalty

Global Influence:

Developing nations growing middle class

Millennial Retention: Problem

Millennials are currently

on track to become the
most populous
generation in the
workforce by 2016 (PEW
Research Center)

Causes of High Millennial Turnover Rate

A sense of purpose

A desire for professional development

personal stakeholder in the companys wellbeing

The Three Ds: Disvalued, Disconnected, Disappointed

These factors inevitably drive millennials to seek satisfaction elsewhere

Global Influences on the Airline Industry

US airline customers (and really passengers all over the world) have shown
time and time again that they care about one factor above all else: price
(Bhaskara 2015).

Competition from international airlines

New market opportunities

China & India

Ryanair Airlines

Irish budget airline

Operational differences

Avoid major airports, relies regional airports

Planes operate all day

No seat reservation

Utilizes point-to-point model

Machine Check-in

United Airlines Strengths

Worlds

Largest Airlines

Frequent
Strong

Flyer Mile Program

Strategic Alliances

Improvements and Programs

Expand

Operational Network

Hub-and-Spoke
Airport

to hub to destination

Point-to-Point
Airport

Higher

model

model

to destination

Cost Efficiency

Boeing

767

Ultra-Reliability

Social Media Usage Around The World

Social media generates a huge amount of customer data in real time.

Instances Per Day:

500 million tweets, 4.5 billion Facebook likes, and 95 million Instagram photos &
videos

Each persons social media feed acts as a platform for customer feedback of
companies, restaurants, and products in real time.

Live view of what customers are looking for, wanting, and how they feel of
certain brands.

With social listening businesses can make smart decisions.

Social Media Benefits

Increase brand awareness and loyalty

Presence on social media makes it easy to connect with customers (vise versa).

Connecting with customers on social media increases customer retention and brand
loyalty.

53% of American customers who follow brands on social media are more loyal to
those brands.

American Airlines connects with their customers regarding their problems.

We need to assist customers with their seating assignment, flight cancelations, lack of
employee ethics, or finding ways to change their views of our airline.

Advertisements

Inexpensive ways to promote business and distribute content

Yes we have certain ads, for example, new destinations such as Cuba.

We need to target a specific audience

Social media is dominated by a young audience

Inexpensive spring season flights, and early summer flights.

With our regional jets to these locations, we could increase profits while limiting
expenses.

Providing rich customer service

As stated before, competing airline

companies in the United States are heavily
involved in social media.

67% of customers now go to social media for

customer service.

Expect fast responses (24/7), because

customers want to be reached in shortest
possible time.

Airlines with quality customer support and

quick responses have larger financial gains as
opposed those who fail to implement these
policies.

Analyzing Competition & Building Relationships

Analyzing Competition:

Gain key information about your competitors

Make strategic business decisions to stay ahead of them

Deals/promotions, new destinations, adding new aircraft

Building Relationships:

Give customers a reason to return

Let customers know that we are here to help them with whatever they may need, whether it
be their fault or our fault.

Establish relationships

Building relationships has never been easier, with a couple taps on a screen a meaningful
relationship can be formed.

Social Media Solutions

Establish

social media connections

Create

targeted advertisements

Quality

customer service

Build

meaningful relationships

The Future of United Airlines

Millennial Retention:

Lower training costs & more diverse talented

workforce

Global Influence:

Increasing Operational Network: Point-to-Point

Model

Higher Cost Efficiency & Ultra-Reliability

Social Media Usage:

Smarter Business Decisions

Increase in brand awareness and loyalty