1. What specific strategy did American Airlines use to sustain competitive advantage? Outline the strategic actions taken by American Airlines since deregulation.

2. What environmental barriers did American Airlines confront? How did it affect the industry and their strategic planning?

3. Compare the strategic leadership characteristics of Casey Crandall, Smith, Carty, and Arprey. Provide examples when possible in your comparison. Did they exhibit the characteristics of effective strategic leadership?

4. Using the competitive forces model and the case information, what outlook can you provide for American Airlines?

This case describes how American Airlines, with strategic leadership, overcame significant barriers including deregulation and 9/11 to create numerous corporate level strategies that placed them outside the brink of bankruptcy. The main focus of the case is on how American Airlines' strategies improved performance, sustained growth, and ultimately led to a competitive advantage. Through immediate work with technology and labor relations, American Airlines introduced frequent flyer programs, two-tiered wage systems, international expansions and formed alliances and affiliates aimed at crushing all the competition. American Airlines' strategies of attaining low-cost operations, integrating operations, and its commitment to protecting its employees were instrumental in American Airlines' ability to overcome union/labor troubles and price cutting and safety problems experienced in the industry. By incorporating a comprehensive approach to utilizing technology, American Airlines was able to capture brand loyalty through better customer relationship management. From Crandall to Arprey, American Airlines is poised for proactive approaches to competition but they must continue to monitor the macro-environment and continue to consider its employees in the process.