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AMR Corporation (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

AMR Corporation

AMR Corporation (AMR) operates in the airline services industry. The company, through its various subsidiaries, provides domestic and long haul flight services. The company operates throughout the US, Mexico, Puerto Rico, Caribbean, Canada, Latin America, Europe and the Pacific region. The company is headquartered in Fort Worth, Texas and employs 84,100 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Global network
  • Strong alliances and marketing tie-ups

Weaknesses

  • Declining operating efficiency
  • Weak performance of DOT Domestic

External

Opportunities

  • Positive outlook of the passenger airline market
  • Growing US air freight market

Threats

  • Intense competition and price discounting
  • Security obligations
  • Economic slowdown in the US and Eurozone
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