Question: - With the following information identify 3 alternative recommendations for Delta. You can consider these recommendations as high level strategies. Explain the pros and cons
- With the following information identify 3 alternative recommendations for Delta. You can consider these recommendations as high level strategies. Explain the pros and cons of each alternative strategy and based on these choose the most viable alternative. Then, identify and briefly explain the implementation steps of the chosen strategy.
Delta Airlines is one of the leading airlines in America with an operation around 5,500 flights a day (its around 15,000 flights per day with the third party alliance) serves over 325 destinations (with the alliance to other partners, its around 900 destinations) in 52 countries on a space of six continents. The company ranked second amongst the scheduled passenger carrier, and revenue passenger-kilometers flown. The company has around 90,000+ human resource personnel worldwide. In the scenario, here we discuss the industry it operates, reviews, competitors, and critiques in the business, also the business strategies to achieve the competitive advantages.
The Delta Company actually competes in the two industries, airline, and refinery. Delta Airlines focusing on the airline industry and the major focus towards the air transportation of passengers and cargo using the aircraft. The industry is actually in an oligopoly stage in the past couple of decades, and now its shifting towards the monopolistic competition, where more than multiple competitors and aggregators are available in the market. In the industry, the decision of a few may not affect the others and the pricing factors are crucial to attain the momentum or character of the business to the targeted customers. Having a flexible business model, allows Delta to adjust their cost structure. Delta is known to focus on corporate/business travelers as its target market, but due to the Airlines top customer experience non-corporate travelers pay the price to fly with Delta.
The internal characteristics of the company start with the core team of over 90,000 employees working towards the same goals, passionate to bring everyone together, encourage everyone, and collectively create a better space for living. The internal characteristics are the major factors that influence the business like human resources, company policies, regulations, employee management, and the trait of operations and commitment are crucial in the business. The major competitors of Delta Airlines are Jet Blue Airlines, Alaska Air Group, SouthWest Airlines, and American Airlines. These airline companies have a high foothold in the industry with attractive prices, more destination supports, and better connectivity across the countries.
The reviews are the formal assessment of the airlines and the intention of the industry or a critical approach to rate the service. The company offers travel options to every segment of air passengers and the availability of options to different age groups based on the income statement is available. The company operates with a basic economy, low-cost carriers to high premium business carriers for the different interests of people. The detailed analysis or critique is something that assesses the business operations and the current state of conditions in the market. The critiques are essential to evaluate the travel history, feedbacks of the passengers to produce detailed and analytical ways.
In Delta Airlines, the major business strategy of the airline to achieve the grip in the market are through the four activities of (i) purchasing the used aircraft, (ii) low-unionization of labor or human resources, (iii) vertical integration, (iv) the all-rounder in industry-leading customer services. The sound sources of competitive advantages or the position where the circumstances put the company in a favorable position are even when the stronger market positions and when there is a better financial status of the company. Delta is valued greatly while compared to the competitors because of the industry-leading monopolies, and innovative segmentation. The major competitive advantages are the ability to consistently maintain the higher margins than the direct competitors, and a major cost advantage to the company because of the refinery operation of the Delta Group in the same country.
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