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Delta Airlines Case Analysis - Research Paper Example

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Delta Airlines Case Analysis

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 ...Show more

Summary

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…
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