Delta Airlines Competitors

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Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms increases (David, 2013). Competition in the airline industry is intense because of barriers to entry being low (Cederholm, 2014). According to Cederholm, about 1,300 new airlines were established in the last 40 years (2014). Capital is currently highly attractive for Delta, and projected to remain highly attractive. This is because to be able to enter into this industry, the barriers to entry may be low because anyone can buy a plane, but obtaining the capital to purchase the aircrafts; either through borrowing, or potentially having investors, can be difficult. Government policy is neutral but will become mildly unattractive. This…show more content…
Delta is the 2nd largest airline company, holding 17% of the domestic market share (RITA, 2015). Southwest, the largest airline company, has 17.8% of the domestic market share (RITA, 2015). Limited suppliers is mildly unattractive, but is expected to become neutral for Delta. Product differentiation is neutral and expected to become mildly attractive. Delta will become more popular again because of peoples willingness to pay for a better product. Delta is a higher quality compared to Southwest airlines. While flying with Delta, the customer will get the opportunity to choose a desired seat, and will receive refreshments (Main Cabin, 2015). Southwest does not serve snacks on flights, but when flying on Delta, if the trip is longer than 900 miles, passenger will receive the snacks (Main Cabin, 2015). Rivalry is mildly attractive but will become neutral. Switching cost is neutral and will become mildly unattractive. Since the decline of the economy consumers have become more frugal. They are looking for the best deal they can find. Quality of substitutes is mildly unattractive and will remain mildly
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