Introduction/Background:
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, the airline benefits from having numerous strengths. For example, Delta benefits from the size of the company. In addition, Delta’s choice location provides advantages over other airline companies. Choosing Atlanta as location for one of Delta’s airport resulted in Delta having the busiest airport in the world due to the convenience of the location. Delta’s decision to merge with smaller airline companies throughout the twentieth century also acts as an another strength since the decision allowed the company to benefit from gaining more customers, which increased Delta’s profits. Delta has less restrictive rules, when compared to other companies, that the company’s employees must abide by. Freedom given to the employees results in more productive workers. Lastly, Delta’s management is willing to analyze causes of specific problems and threats and to develop effective solutions. (Adam, 2011 August 26) Weaknesses prevail throughout Delta. Delta faces a high cost of labor and decreases in the company’s share of the marketplace ( Adam, 2011 August 26). Not having a plan that addresses the issue of how to compete against other companies poses another weakness (Adam, 2011 August 26) The failure of Delta’s subsidy aircraft, the Delta Express, in the long run posses a third weakness. Delta faces various threats due to changing notions in society. Competition is a threat that not only include other airline companies, who offer consumers low-cost plane tickets such as JetBlue and Southwest, but also include availability of travel by automobiles, boats, and trains. Likewise, the possibility of terrorist attacks acts …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).
Alternatives
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.
Recommendations and
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, the airline benefits from having numerous strengths. For example, Delta benefits from the size of the company. In addition, Delta’s choice location provides advantages over other airline companies. Choosing Atlanta as location for one of Delta’s airport resulted in Delta having the busiest airport in the world due to the convenience of the location. Delta’s decision to merge with smaller airline companies throughout the twentieth century also acts as an another strength since the decision allowed the company to benefit from gaining more customers, which increased Delta’s profits. Delta has less restrictive rules, when compared to other companies, that the company’s employees must abide by. Freedom given to the employees results in more productive workers. Lastly, Delta’s management is willing to analyze causes of specific problems and threats and to develop effective solutions. (Adam, 2011 August 26) Weaknesses prevail throughout Delta. Delta faces a high cost of labor and decreases in the company’s share of the marketplace ( Adam, 2011 August 26). Not having a plan that addresses the issue of how to compete against other companies poses another weakness (Adam, 2011 August 26) The failure of Delta’s subsidy aircraft, the Delta Express, in the long run posses a third weakness. Delta faces various threats due to changing notions in society. Competition is a threat that not only include other airline companies, who offer consumers low-cost plane tickets such as JetBlue and Southwest, but also include availability of travel by automobiles, boats, and trains. Likewise, the possibility of terrorist attacks acts …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).
Alternatives
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.
Recommendations and