The company I chose to research is Delta which is in the airlines industry. Delta is one of the world’s largest global airlines that assist more than 160 million travelers get to destinations around the world. The company started in 1924 as a small aerial crop dusting operation known as Huff Daland Dusters. In 1929 Delta had its first passenger flights that went from Dallas, Texas to Jackson, Mississippi. This flight was taken on an airplane that carried 5 passengers and 1 pilot. Delta has been offering its service to customers for 85 years. For four consecutive years, Delta has been ranked No. 1 in the Business Travel News Annual Airline survey. This is a huge accomplishment because it is a first for any airline. It is important …show more content…
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. Corporate-level strategies are liable for market definition; they address the entire scope of the business. This strategy helps a business to diversify its service. It gives them direction in which geographic region they should operate and which service markets to strive in. “Thus, an effective corporate-level strategy creates, across all of a firm’s businesses, aggregate returns that exceed what those
Each organization has or should have a distinct business strategy to ensure they reach their desired goals and objectives. Uniquely, the business strategy, or competitive strategy, should include their target consumers, the product or service desired by their consumers, and their roadmap to remain competitive in the market (Parnell, 2014). However, strategies may be difficult to determine when the organization is engrossed in one industry, but decides to dip their toe in another industry (Bethel, 2016).
Delta defeated the record for the topmost net profit in the airline industry in 2013. They achieved this success through its business and operating model alignment. Delta’s business model focused on appealing to corporate travelers and trying to change the prices to variable costs variables instead of fixed costs. In total, this model grants the company to loosely change their ways of business to meet the demands of the public, while preserving increased margins than their competition at the same time. This lets Delta have the upper hand in the industry.
7) Retirement plans worth $1,5 billion (Delta Airlines, 2014, p. 7) Providing a safe working environment (Delta Airlines, 2014, p. 7) For instance, the initiative of Delta’s staff to procure a jet in 1982, as a gift to the company, is a strong indicator of how successful this method is (Kaufman, 2012). Consequently, even though the company went through many acquisitions, merges and was even at the brink of bankruptcy, throughout the years (Tully, 2014), it managed to survive and prosper. 2. Environmental Approach Moreover, Delta Airlines is an organization that not only cares about the affluence of its internal environment but also for its external.
Business-level strategy is an integrated and coordinated collection of commitments and actions that are used by firms to achieve a competitive advantage. The firms utilize core competencies in certain product markets. Under this strategy, firms specify their choices on how they plan to compete in individual product markets. It’s important that every firm develop a business-level strategy to create differences between its position and its competitors’ positions. The relationship between customers and business-level strategies is very important because customers are the source of the strategy’s success. It’s imperative that the firm differentiate who the customer will be (market segmentation), what are the customers’ needs,
Miles and Snow have produced a typology of business level strategies. Their typology involves four strategic types: defenders, prospectors, analyzers and reactors. Using Miles and Snow’s strategy typology that consist of; defender, analyzer, reactor, and prospector, I will categorize Dollar Tree in its strategy typology. In the first strategy defenders try to carve a niche in the market where stability can be found. As in the prospector strategy, companies are constantly producing innovations. I understand through Miles and Snow typology of business level strategies that defenders, analyzers, and prospectors are forms of organizations. Therefore, if an alignment is reached between a chosen strategy, and organizational structure mentioned above Dollar Tree has the potential to be a
The concept of Business Level Strategy is the action taken to provide value for the customer in order to gain maximum competitive advantage. The way Firms can use Business level Strategy in order to gain competitive advantage is by identifying,
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.
Strategies. Delta Airlines generic strategy is that of differentiation which the company has exhibited through a unique wide-ranging flight service and brand legacy (Selvaggio par. 3). Customer service is distinguished through first-class offer and frequent flyer rewards. The other airlines which merged with Delta, U.S. Airways, United and Northwest, have all recognized the unique selling proposition of Delta (Mutzabaugh par. 15). Delta’s competitive strategies cover customer satisfaction and rewards, employee retention and rewards and marketing and promotion. Industry ranking in terms
Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).
Overview of the concept of corporate level strategy Corporate level strategy is to the basis for strategic business decisions made by the top management to influence the corporation as a whole. Concentration strategy is used when the company focuses on one business field. Vertical integration occurs when the company controls the supply chain that produces products by itself or distributes the products directly to the markets. Diversification, also known as, horizontal integration is related to acquiring or merging different or similar businesses to increase market share.
Business level strategies identify the company’s overall competitive theme (Hill & Jones, 2013). In addition, business level strategies evaluate the ways a company
The case study, prepared by Arthur A. Thompson, University of Alabama, and John E. Gamble, University of South Alabama, focuses on the rise to business prominence of Southwest Airlines, a regional airline with a low-cost no-frills approach.
Delta has since grown into one of the world’s largest global airlines. Each year they service on average 160 million
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
The heart of Southwest represents more than just an airline; it represents a strong commitment to serving its customers. Southwest airlines’ success is founded on the dedication and hard work of its employees. I choose Southwest Airlines because I have personally witnessed how your company always puts people first. Southwest’s latest ad campaign “Transfarency” proves that Southwest Airlines knows that fair is more than just a price; it is an experience. Southwest builds trust with its customers through the guarantee of no change fees and two free bags. The Southwest way is why Southwest is responsible for carrying the most nonstop domestic passengers in the United States. Southwest Airlines not only takes care of their customers, but also treats their employees like family. I recognized Southwest’s fun-loving work culture when Shannon Grandin came to speak to my Strategic Brand Management class at SMU. As Shannon spoke, I could hear the love she has for her co-workers in her voice. Southwest has become her second home, and I know I want to be a