Peer Review Explanation

Identifying of the problem and opportunity:

Identifying unwanted situations can only upgrade the opportunities for the airline as a whole. Merging US Airways with American Airlines will bring the fleet size up to more than 800 aircrafts. Some people may take notice of the 800 aircrafts as a positive statement to the business, whereas others who travel for a living may beg to differ; this is mentioned because of air traffic. A fact in which some people may not know is; the owners of an airline company is not guaranteed air slots or space, all proposals must be discussed and brought to the attention the Federal Aviation Administration (FAA). Conjoining two airlines and clogging the friendly skies with airplanes is sufficiently unsafe. A good aspect and opportunity of the merger is the notion of the airline having what I like to call, “cap space”. In my own definition, cap space will allow the airline to have a certain amount of aircrafts on standby incase of mechanical or passenger overbooked situations.

Creative concept development:

Creating concept development is an area of interest that should be pondered by top executives; reasoning is because strategic innovation should be created through the knowledge of experience, motivation, and the will to survive as a business. A concept in which should focus on a low risk-high reward outcome can foresee the ideation of a profit to an organization. Another form of development to ensure a well-greased machine is to map out the all lucrative destinations and look at the big picture. Taking notice of the big picture helps foresee which destinations are most popular. As American Airlines headquarters is in the south region, with five major hubs, and New York City as the top focal point of interest; compared to US Airways headquarters in the west region of Arizona with four major hubs.

Prototype development:

Prototype development is common on all business boards. The development of a new product, plane, or disguise must go through its testing phase before making a public appearance to the consumer. For instance, American Airlines has the same great customer service, but a new development has been implemented for the consumer. With available resources, I find American Airlines, and US Airways have developed strategic identity for the ages; the same great “American” color (red, white, and blue), with a small twist in the body design and appearance is decoded.

Implementation, Validation, and Refinement:

The fifth and final step of the Innovation Business Development Model is implementation, validation, and refinement. This step focuses on appropriate enhancements, improvements, and an exit strategy. An exit strategy pertains to a business leaving one project, and start gathering information on another project. One must take notice that an exit strategy cannot be utilized until the prior obligations are met in full. American Airlines and US Airways use the law to protect them from the United States halting their merger. Some government officials claim that the merger between the two companies will bring a head load of higher fares, higher fees, less service, and less competition.

I personally agree with the government, but only partially. Although fares may increase, by combining American Airlines and US Airways gives the customer a wide-range of options to choose from. Instead of two separate airlines, with their own innovation strategies, now there is one monstrous airline with a deep pocket of options. Combining the two validates more than 1,000 aircrafts available, more than 400 major destinations, and close to 10 international markets to travel to and from. Other improvements as the two airlines validate their stamp in the industry are their commuter cities. Commuter cities service small cities across the United States; handling aircrafts as small as 44 passenger seat planes, up to 70 passenger seat planes. The improvement gives the airlines a boost in revenue because of major airports are limited in the United States. By offering small airplanes to service urban areas, suburb areas, etc, the airlines stock should rise because of a steady flow of revenue.

Nuance:

As most businesses should use exercise the unique nuance of innovation strategy development, the airline industry has a heavy stake for their sake. The Innovation Business Development Model is followed as planned, but to ensure a unique nuance, American Airlines and US Airways use a self-service system called Nuance communications. Two vital systems were implemented for use, one Natural Language Understanding (NLU), and two, Interactive Voice Response (IVR). In event created 400 individual jobs via three reservation centers in the United States.