Harvard Case - Distribution at American Airlines (A)
"Distribution at American Airlines (A)" Harvard business case study is written by Benjamin Edelman. It deals with the challenges in the field of Negotiation. The case study is 10 page(s) long and it was first published on : Jan 12, 2009
1. Negotiate new agreements with travel agents. AA should negotiate new agreements with travel agents that are more favorable to the airline. This could include reducing the commission rates that AA pays to travel agents, or increasing the incentives that AA offers to travel agents for booking AA flights.
2. Develop a new direct distribution channel. AA should develop a new direct distribution channel that allows customers to book flights directly with the airline. This could be done through a website, a mobile app, or a call center.
3. Invest in technology to improve the customer experience. AA should invest in technology to improve the customer experience when booking flights. This could include making it easier to find and book flights, and providing more information about flights and fares.
4. Partner with other airlines to expand distribution reach. AA should partner with other airlines to expand its distribution reach. This could involve codesharing agreements, which allow AA to sell tickets on other airlines' flights, or interline agreements, which allow AA to book passengers on other airlines' flights.
5. Explore new distribution models. AA should explore new distribution models, such as dynamic pricing and subscription services. Dynamic pricing allows AA to adjust its prices based on demand, while subscription services allow customers to pay a monthly fee for unlimited access to AA flights.
2. Background
American Airlines (AA) is one of the largest airlines in the world. The company has a large distribution network that includes travel agents, online travel agencies (OTAs), and its own website. However, AA's distribution system is facing a number of challenges, including:1. Rising costs. The cost of distributing tickets through travel agents and OTAs is rising. This is due to a number of factors, including the increasing popularity of online booking and the consolidation of the travel agent industry.
2. Declining commissions. Travel agents and OTAs are increasingly offering lower commissions on AA flights. This is due to the increasing competition in the travel industry and the rise of online booking.
3. Lack of control. AA has limited control over the distribution of its tickets through travel agents and OTAs. This can lead to problems such as overbooking and flight cancellations.
3. Analysis of the Case Study
**Strategic Framework:**AA's distribution system is a critical part of its business. The system allows AA to reach customers and sell tickets. However, the system is facing a number of challenges that are impacting AA's profitability and customer satisfaction.
Financial Framework:
The rising cost of distribution is a major concern for AA. The company is paying more to travel agents and OTAs to distribute its tickets, and this is eating into its profits. In addition, the declining commissions that AA is receiving from travel agents and OTAs are further reducing its revenue.
Marketing Framework:
The lack of control that AA has over the distribution of its tickets is a major marketing challenge. The company is unable to control the way that its tickets are sold, and this can lead to problems such as overbooking and flight cancellations. This can damage AA's reputation and make it difficult to attract new customers.
Operational Framework:
The distribution system is a critical part of AA's operations. The system allows AA to manage its inventory and schedule flights. However, the system is facing a number of challenges that are impacting AA's operations. For example, the rising cost of distribution is making it more difficult for AA to operate profitably. In addition, the lack of control that AA has over the distribution of its tickets can lead to problems such as overbooking and flight cancellations. This can disrupt AA's operations and damage its reputation.
4. Recommendaations
**1. Negotiate new agreements with travel agents.** AA should negotiate new agreements with travel agents that are more favorable to the airline. This could include reducing the commission rates that AA pays to travel agents, or increasing the incentives that AA offers to travel agents for booking AA flights.2. Develop a new direct distribution channel. AA should develop a new direct distribution channel that allows customers to book flights directly with the airline. This could be done through a website, a mobile app, or a call center.
3. Invest in technology to improve the customer experience. AA should invest in technology to improve the customer experience when booking flights. This could include making it easier to find and book flights, and providing more information about flights and fares.
4. Partner with other airlines to expand distribution reach. AA should partner with other airlines to expand its distribution reach. This could involve codesharing agreements, which allow AA to sell tickets on other airlines' flights, or interline agreements, which allow AA to book passengers on other airlines' flights.
5. Explore new distribution models. AA should explore new distribution models, such as dynamic pricing and subscription services. Dynamic pricing allows AA to adjust its prices based on demand, while subscription services allow customers to pay a monthly fee for unlimited access to AA flights.
5. Basis of Recommendaations
The basis for our recommendations is as follows:1. Core competencies and consistency with mission: Our recommendations are consistent with AA's core competencies and mission. AA is a major airline with a strong brand and a large customer base. The company is committed to providing its customers with a high-quality travel experience. Our recommendations will help AA to improve its distribution system and provide its customers with a better experience.
2. External customers and internal clients: Our recommendations take into account the needs of AA's external customers and internal clients. AA's external customers are the people who book flights on the airline. Our recommendations will help AA to provide its customers with a better booking experience and a more affordable price. AA's internal clients are the employees of the airline. Our recommendations will help AA to improve its operations and make it a more efficient company.
3. Competitors: Our recommendations take into account the competitive landscape of the airline industry. AA is facing competition from a number of other airlines, both domestic and international. Our recommendations will help AA to improve its distribution system and compete more effectively with its rivals.
4. Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): We have not conducted a quantitative analysis of our recommendations. However, we believe that our recommendations are attractive because they will help AA to improve its distribution system and provide its customers with a better experience.
Are all assumptions explicitly stated (e.g., needs, technology trends)' Yes, all of our assumptions are explicitly stated. We assume that AA has the resources to implement our recommendations and that the airline is committed to providing its customers with a high-quality travel experience.
6. Conclusion
We believe that our recommendations will help AA to improve its distribution system and provide its customers with a better experience. We urge AA to consider our recommendations and take action to improve its distribution system.7. Discussion
**Other alternatives not selected:**We considered a number of other alternatives before making our recommendations. These alternatives included:
1. Do nothing. AA could choose to do nothing and continue to use its current distribution system. However, we believe that this would be a mistake. AA's distribution system is facing a number of challenges that are impacting the airline's profitability and customer satisfaction. If AA does not take action to improve its distribution system, it will continue to lose market share to its competitors.
2. Outsource distribution to a third-party provider. AA could choose to outsource its distribution to a third-party provider. This would allow AA to focus on its core competencies and leave the distribution of tickets to a specialist. However, we believe that this would be a risky move. AA would lose control over its distribution system and would be at the mercy of the third-party provider.
Risks and key assumptions:
There are a number of risks associated with our recommendations. These risks include:
1. The cost of implementing our recommendations could be high. AA will need to invest in technology and staff to implement our recommendations. This could be a significant expense for the airline.
2. Our recommendations may not be effective. There is no guarantee that our recommendations will improve AA's distribution system. The airline may need to make further changes to its system in the future.
3. Our recommendations may not be accepted by AA's stakeholders. AA's stakeholders, including its employees, customers, and shareholders, may not support our recommendations. This could make it difficult for AA to implement our recommendations.
Key assumptions:
Our recommendations are based on the following key assumptions:
1. AA has the resources to implement our recommendations. AA will need to invest in technology and staff to implement our recommendations. We assume that AA has the resources to make this investment.
2. AA is committed to providing its customers with a high-quality travel experience. AA's mission statement is to 'provide our customers with a safe, reliable, and enjoyable travel experience.' We assume that AA is committed to this mission and will take action to improve its distribution system.
3. The airline industry will continue to grow. We assume that the airline industry will continue to grow in the future. This will create opportunities for AA to expand its distribution system and reach new customers.
8. Next Steps
We recommend that AA take the following steps to implement our recommendations:1. Develop a plan to implement our recommendations. AA should develop a plan that outlines the steps that need to be taken to implement our recommendations. This plan should include a timeline and a budget.
**2. Get buy-in from AA's
Hire an expert to write custom solution for HBR Negotiations case study - Distribution at American Airlines (A)
- Us Airline Industry
- American Airlines Inc Revenue Management
- American Airlines Value Pricing
- International Airlines
- Southwest Airlines Abridged Update
- American Airlines
- Data Analysis Decision Making Case Study Reaccommodating Passengers Airline
- Alaska Airlines Price Just Get
- Southwest Airlines
- Rapid Rewards Southwest Airlines
- British Airways
- Nwa Inc Northwest Airlines Revenue Management
Case Description
American Airlines sought to reduce the fees it pays to global distribution services (GDSs) (such as SABRE) to reach travel agents. But GDSs held significant tactical advantages. For example, GDSs had signed long-term exclusive contracts with the corporate customers who were American's best customers. Furthermore, travel agents tended to favor whichever GDS offered the highest commissions - impeding price competition among GDSs. Against this backdrop, American considered how best to cut its GDS costs.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - Distribution at American Airlines (A)
Hire an expert to write custom solution for HBR Negotiations case study - Distribution at American Airlines (A)
Distribution at American Airlines (A) FAQ
What are the qualifications of the writers handling the "Distribution at American Airlines (A)" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " Distribution at American Airlines (A) ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The Distribution at American Airlines (A) case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for Distribution at American Airlines (A). Where can I get it?
You can find the case study solution of the HBR case study "Distribution at American Airlines (A)" at Fern Fort University.
Can I Buy Case Study Solution for Distribution at American Airlines (A) & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "Distribution at American Airlines (A)" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my Distribution at American Airlines (A) solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - Distribution at American Airlines (A)
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "Distribution at American Airlines (A)" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "Distribution at American Airlines (A)"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study Distribution at American Airlines (A) to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for Distribution at American Airlines (A) ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the Distribution at American Airlines (A) case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "Distribution at American Airlines (A)" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).