Business Strategy Case Study: Delta Airline
The impact of the airline industry prevails throughout society. Delta is a major airline that provides jobs for over seventy-five thousand employees and acts as an oligopsony. In order to maintain a competitive edge, Delta must recognize problems and develop effective solutions. Various problems faced by Delta not only include competition with airlines such as JetBlue and Southwest who offer customers low prices but also the potential of the loss of business due to threats. Likewise, growing, but high, fixed costs and the availability of other means of travel such as boats, vehicles, automobiles, and trains act as problems faced by Delta.
Statement of Problem/Analysis Although Delta is plagued with various problems, …show more content…
In order to compete with other companies efficiently, Delta can develop a plan that allows the company to offer low cost plane tickets. Delta not only can benefit from the opportunity to invest in new technology but also to provide more outlets for customers to make online reservations through the company’s website. Embracing these opportunities will enable them provide more fuel efficient engines and to increase customer satisfaction. By lowering prices on airline tickets, Delta has the opportunity to gain new customers who are now able to afford to travel by plane (Adam, 2011 August 26).
Delta can combat the threats/ problems by implementing various solutions. For example, Delta can develop a strategic plan that allows the of other low cost airline companies that allows the company to compete effectively. Delta can also decrease the likelihood of a terrorist attack by improving security, which includes hiring new security guards and training employees to recognize the signs of a potential attack. Lastly, Delta can stay informed about local politics to prevent the company from facing loss due to changes in government policies.