The company has alliance partners that enable it to provide greater connectivity to its customers. In addition to the legacy model the company also has a subsidiary named Delta Express which is the low cost model of the airline company. The company has a large fleet at its service numbering about 700 aircrafts that includes small planes to jumbo jets for long haul flights (Delta Airlines, 2011). Products Delta Air has a service portfolio that provides air travel facility to customers. The service portfolio of the company is comprised mainly of a full time legacy carrier model as well as a low cost model. The bulk of business is focused towards the legacy carrier that provides air connectivity not only in the domestic market in USA but also to a large number of nations abroad. The company also has alliance partnerships with leading alliances that helps increase the connectivity. In addition the company also has a hub and spoke model and a code share agreement to broaden its area of service offering. Customer Satisfaction Customers form the main area of focus for the strategists at the organization. Every effort is being made to ensure the full satisfaction of the customer. The customers are provided with wide range of facilities that includes on board entertainment, food etc. Customers also have the option of web check in and internet bookings. The company also has loyalty points for frequent travellers. Due to its dedicated efforts towards customer satisfaction the company was ranked 1st in the Fortune’s list of most favoured airlines (Delta Airlines-a, 2011). Internal Environment Analysis SWOT Analysis SWOT is an acronym for Strengths, Weakness, Opportunities and Threats. The following section would analyse the strengths, weakness opportunities and threats faced by the airline. Strengths The main area of strength for Delta Airlines arises from its strong brand image and a formidable market position in the US market. The airline has a very large network helping it connect with a large number of both domestic as well as international destinations. The hub and spoke model of the airline also contributes to its success story. The existing hubs at Atlanta and New York provide competitive advantage to the organization (Datamonitor, 2007, p.24). Weakness The major weaknesses in the firm arise from the dip in demand for the services due to the ongoing effects of the financial crisis. The company also faces issues with regard to low yield of passengers and dip in cargo volume business. In addition to this high cost of fuel and labour also serve to generate considerable weakness on the business prospects of the organization (Datamonitor, 2007, p.24). Opportunities Opportunities for Delta Air mainly arise from the high growth of passenger traffic mainly in the Asia Pacific region and Latin America. In addition to this growth of cargo over the pacific has also improved showing good opportunities for the organization (Datamonitor, 2007, p.24). Opportunities for the organization also arise from the fact that the markets across US and
Delta Airlines Case Analysis Table of Contents Delta Airlines Case Analysis 1 Table of Contents 2 Situation Analysis 4 Products 4 Customer Satisfaction 4 Internal Environment Analysis 5 SWOT Analysis 5 Strengths 5 Weakness 5 Opportunities 6 Threats 6 External Environmental Analysis 6 Porter’s Five Forces 6 Bargaining Power of Buyers 7 Bargaining Power of Suppliers 7 Threat of New Entrants 7 Threat of Substitutes 7 Competition among the Existing Players 8 Assumptions and Missing Information 8 Statement of the Problem 8 Developmental Alternatives 9 Evaluations of the Alternatives and Recommendations 10 Implementation 11 Evaluation and Control 11 References 13 Situation Analysis Delta Airlines…
The company has also made generous donations to various arts, sporting and educational activities. However, when compared with the social responsibility activities of other airlines considering their profitability, it appears that Singapore Airlines has been lagging behind.
According to the report Delta Air Lines pays their employees in home currency, whereas the other expenses like supplies, rent and landing fees are paid in local currency. Again fuel which is a major expense in airlines industry is paid in dollars. The main challenge for the company is to adjust the income and expenses while operating in different currencies.
Introduction For the last one decade, the U.S. Airline industry has experienced a number of high-profile merges, the recent one being the US Airways- American Airline merger. According to the available literature the three motives of mergers are: monopoly motive, speculative motive and normal business motive.
The macro- and micro- environment affects not only an organization in an industry, but also the whole industry itself.
PEST helps to analyze external drivers that have a great impact on performance of Delta Airlines. Before 9/11 Delta Airlines was influenced by strong legislation and stable economic situation in the region which allows it to sustain competitive market position.
The company has alliance partners that enable it to provide greater connectivity to its customers. In addition to the legacy model the company also has a subsidiary named Delta Express which is the low cost model of the airline company. The
Hartsfield-Jackson International Airport is the largest operating hub under delta airline. In addition, it has four other hubs in full operation in U.S cities. It is estimated to be the second largest airline in the world. In 2008, it made an intention of purchasing Northwest Airlines known thus creating one of the largest airlines in the world.