United Continental Holdings, Inc: Company Strategy & Performance Analysis
United Continental Holdings, Inc. (UAL) was developed by merging all of its subsidiaries in the year 2013. United Airlines, Inc. was a wholly-owned subsidiary of United Continental Holdings, Inc. It was incorporated in the year 1968. The merged company along with its various subsidiaries offer passenger and cargo services through Mainline and Regional airlines. The company offers these services in collaboration with many third party airlines operating in national and international markets. It serves key international destinations such as Europe, North America, Asia-Pacific, Latin America and Middle East. Leveraging all its alliances and facilities provided by subsidiary companies, UAL operates around 4,500 flights at 339 airports across five continents in a day. The company offers various loyalty programs such as MileagePlus, which benefit both the company and its customers.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading airline companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including: number of seats available, number of seats sold, number of passenger kilometres available, number of revenue-generating passenger kilometres, load factor and revenue per passenger.
United Continental Holdings invested in new technologies and launched new services
In the year 2017, United Continental Holdings formed a collaboration with IBM to integrate its operations across various locations by using an iOS mobile app based on IBM MobileFirst platform. This application will enhance its operational efficiencies and provides a competitive edge to the company. It offered new entry level fares for economic customers and fixed the prices of its services for high-value and medium-value customers. It started offering no-frill services at entry level prices. Thus segregating the prices of different services provided the company better accountability in its operations.
Focus on segmenting target groups
The company aims to segment customers into different groups to offer services effectively. It also continues to enhance customer service by integrating advanced technologies into its business operations. United Continental Holdings, Inc. intends to enhance its operational capacities by transforming its diverse operating system into one integrated operating system.
Enhancing its operational efficiencies by focusing on cost minimization
UAL focuses more on minimizing its cost of operations to drive profitability. Severe market competition restricts its scope to enhance revenue, however it is feasible for the company to reduce its operational cost by upgrading and enhancing its operational efficiencies. The company aims to reduce the occurrence of errors in the system by investing in advanced technologies.