American Airlines has a superior market share in the United States of America that enables it to have more clients and desirable profitability. The company also has an extensive operational network that is measured using available seat miles and revenue passenger miles. The fact that it is the largest scheduled passenger airline in the world makes it to make more revenue since it serves a huge number of clients in the market. American Airlines also has strong alliances and tie-ups that increases the flight frequencies and in so doing it increases the amount of revenue made by the company. The fact that American Airlines has a loyalty flyer program which enables the clients to earn loyalty points for any flight ticket they purchase. They can later redeem the points for a free flight. The program helps the company to attract more clients. The management can make use of the strengths of the company to increase its performance in the market. (Augustine, 2013).
The fact that the company relies on a limited number of suppliers means that it is at risk of design defects, mechanical problems and inadequate performance. A large number of low-cost competitors in the market pose a threat to the company’s success as they take a substantial market share.
The growth of global tourism means that many people are travelling, a situation that will lead to an increase in the number of clients available for American airlines. The fact that the company has a large operation network around the world means that it will serve a substantial number of clients. It is therefore important for American Airlines to do its best to take advantage of the opportunity. The other opportunity is the growth in the U.S. airline industry. The growth in the industry means that there are many clients in the market that are supposed to be served by the companies available. The growth in the industry is, therefore, a good opportunity for American Airlines to grow. The cargo sector is also growing at a high rate meaning that it is the next big thing in the airline industry. American Airlines should, therefore, make many investments and take advantage of the situation (Li et al., 2014).