In fourteen pages United Airlines is analyzed within the context of a general airline industry overview and the competition framework provided by Michael Porter's Five Forces. There are five sources cited in the bibliography.
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hop on a plane and be at their destination in no time. While traveling by plane is a rather easy thing to
do, running a major airline is somewhat more difficult. This might seem apparent on the surface of things -- the planes themselves are difficult to maintain and fuel, plus
there is a lot of staff that needs to be paid for services they provide. However, and analyzing the airline industry in general
-- and United Airlines in particular -- by using Michael Porters Five Forces of business and industry, we can examine precisely how difficult it can be to successfully manage and
run a major airline company. Porter, a professor at Harvard University, has put together an interesting way to analyze industry to determine how well company will or will not
do in that particular industry. The Five Forces -- consisting of barriers to entry, competitive rivalry, supplier power, buyer power and a threat
of substitutes -- is an ideal framework by which to analyze the airline industry. The industry is not difficult to enter in many respects (but is difficult to exit),
is an intensely competitive industry, is ruled mainly by its suppliers and depending on the economy, by its buyers as well. In addition, the airline industry in general faces
many substitution threats. In this paper, we will examine the industry in general and United Airlines specifically. We have chosen the United
for analysis for many reasons. First, the airline is one of the oldest of the United States -- having been launched right at the beginning of the Great Depression.