Identification of Company’s Current Strategic Issues and Recommendations
MGMT 647
May 15th, 2014
Individual Project
Table of Contents
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Summary of External and Internal situation of Delta Air Lines Technological advancements, mergers and acquisitions, volatility in crude oil prices, currency depreciation, ground staff management and baggage handling are the major external factors for Delta Air Lines. The Monroe oil refinery purchased by Delta Air Lines provides an opportunity for the company to deal with the volatility in crude oil prices. Presently Delta Airline is over dependent on the North American markets, which had experienced a major hit during the recession in 2008.
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Delta has been focusing on technological innovations but they need to keep on doing that to be profitable.
Alternatives:
Based on the SPACE matrix, Delta Air Line is in the Competitive quadrant which suggests that delta should focus on integration, market penetration, market development, product development. With the help of SWOT matrix there are seven alternative strategies that Delta Air Line can opt from in order to increase its business and sustain (Appendix A).
The SO category suggests three alternatives. The first alternative is to include airlines in India and China under the Sky Team alliance. By doing this, Delta can penetrate into untapped emerging markets and increase its presence. The reason we suggest India and China is because these countries were amongst the lowest to be affected by recession and Delta doesn’t have its prevalence in these regions (http://www.economist.com/node/15172941). Secondly, Delta can capitalize on creating its hubs in India strategically in the long run after gaining access to these markets. The airline will benefit from larger population in both the countries and the government in India encourages Foreign Direct Investment in comparison to China. The third strategy promote business traveler programs in the U.S. Business travelers spend more on their trips and are not as
Delta Airlines in a major American airline company headquartered in Atlanta, Georgia, United States. The company was founded on May 30, 1924. They operate as an extensive domestic and international network. Delta currently operates a fleet of more than 700 aircraft and they employ approximately 80,000 people. In 2011 they were the world’s largest airline in terms of fleet size. Delta Airlines is a very successful company. Part of what makes them so successful is expansion, making good decisions in route selection and hubs location, being service oriented, having a strong operation management, being reactive in terms of prices, and offering low fares.
in revenue passenger-kilometers flown with 277.6 billion. In 2015 their revenue was up $40.704 billion, operating income was up $9.520 billion, and net income of $926 million. Delta’s total assets were down in 2015 with $53.134 billion. Total equity was up with $10.85 billion. The results that we will be discussing will include the RPM, ASM, and Load Factor from May 2015 and May 2016. The results will show the year to date traffic results and the monthly traffic results change.
American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.
This report provides an examinaion of the current structure, performance, stragergy and management of Delta Airlines, along with an industry analysis of the airline industry. The report uses current and past financial and statistical data for the company along with other up to date material to determine Delta's current market position and future potential.
Delta’s road to operational success has been a journey for the company; ever-changing and consistently moving forward. Through trails and reevaluation,
Delta “focuses on shifting their cost structure from fixed to variable costs as much as possible.” (https://rctom.hbs.org/submission/delta-airlines-flying-high-in-a-competitive-industry/) Delta also understands the importance the importance of delivering top notch customer service to appeal to their principal demographic, business travelers. They have incorporated a training work-shop so employees have a better understanding of how to solve travel disruptions that customers deal with. Employees also learn how to help insure that baggage performance is up to par with a low amount of mishandled bags reports from customers. Delta has done this by incorporating a way for customers to track their bags using a mobile app. In the Business Travel News Delta has been ranked #1 by corporate flyers for four years in a row. I believe the business level strategies that Delta has incorporated have been a good choice for their business. Their strategies have helped them to gain a competitive advantage from customer service and great operating cost flexibility.
Delta Air Lines is a corporation with twenty major shareholders. These shareholders often inquire with Delta Air Lines on environmental issues, climate change, fuel rates, and aviation safety. These are major issues for the shareholders because it can affect their company (Corp, 2015). Often customers don’t realize that most airlines don’t just transport passengers, they also transport freight for numerous
This report provides a detailed strategic analysis of Porter Airlines. Information herein was gathered from primary sources including an investor interview and Porter‘s IPO prospectus, as well as secondary sources such as newspaper articles and opponent campaigns. Using all the information at hand, an in depth analysis of the Porter Airlines‘ current situation and strategy is presented.
Delta Airlines is a major American airline company and one of the world’s largest global airlines. The company has operation hubs in the USA, Japan, and France. (Delta Airlines, 2016).
Delta is giving more and more services in other countries with latest technology to beat their competitor in tough market.
Traveling is something that is done for personal reasons or business. Every day, we, utilizes the usage or motor vehicles, trains, boats or even airplanes. Delta airlines is a power house in the business of airline travel. Delta airlines conducts business domestically as well as internationally. This paper will examine how the company’s mission and vision statements and primary stakeholders help in Delta’s success. It will also examine a SWOT analysis of the company’s strengths and weaknesses. It will determine various strategy levels; corporate governance mechanisms and it will evaluate the effectiveness of leadership in the company and determine if there is room for improvement.
Referring to the SWOT analysis, we assume the most uncontrollable key issue imposed on C.P. is the circumstance of fierce competition existing in the current airline industry. Consequently, so as to alter the present marketing strategies of Cathay Pacific so that counteract challenges from other competitors, as alternative submissions, the company should advance new strategies such as acquisition and introducing of budget subsidiaries while comprehending the contemporary strategy reaches a bottleneck.
"Focus on high quality service, increase their share of corporate travel. Get a premium product. Segment the cabin in order to participate in all segments of the market without giving up yield. Increased presence in New York. And re-configuring their Pacific network to do more direct flights
When it comes to performance and profitability, every airline’s dream is to have a high profit margin with a superior performance for each quarter every year. However, not every airline is successful in attaining such results, mostly due to multiple reasons that result in detrimental financial woes. Avianca Airlines does not fall into this category, or any type that reflects a struggling company. Avianca has prospered tremendously throughout the last several years, mostly due to a multitude of smart and well thought out financial decisions.
Abstract A company profile of Malaysia Airline System Bhd, provider of airline and air cargo services, is presented. An overview of the company is given, along with key facts including contact information, and revenues. A SWOT analysis is provided which includes strengths, weaknesses, opportunities for improvement and threats.