Delta Airline SWOT

1257 WordsSep 2, 20146 Pages
Identification of Company’s Current Strategic Issues and Recommendations MGMT 647 May 15th, 2014 Individual Project Table of Contents ` 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.…show more content…
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

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