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Continental Airlines, Inc. (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.”

Continental Airlines, Inc.

Continental Airlines (Continental) is an air carrier engaged in the business of transporting passengers, cargo and mail. The company operates throughout the world, serving 134 destinations in the US and 130 destinations internationally. It is headquartered in Houston, Texas and employs about 42,370 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Operational performance
  • Advantageous location of hubs
  • Strong industry position

Weaknesses

  • Weak performance of regional division Overdependence on the US

External

Opportunities

  • Growing global air freight and logistics
  • Growth in US airlines industry
  • Passenger traffic in Asia Pacific

Threats

  • Rising aviation fuel prices
  • Intense competition and price discounting
  • Foreign currency fluctuation
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