The Marketing Strategy of the Airline | Case Study
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Added on 2020-03-16
The Marketing Strategy of the Airline | Case Study
Added on 2020-03-16
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Running head: CASE STUDYCase Study AnalysisName of the Student:Name of the University:Author note:
CASE STUDY1Executive SummaryIn this report, a complete analysis on the Delta airlines will be made. The marketing strategy ofthe airline in comparison to the other airlines with a complete focus on its macro and microenvironment that includes the SWOT and the PESTEL has been explained. The VRIOframework has been used to reflect its position along with the globalization effects on thestakeholders and the environment has also been briefly analyzed. At the end, a completeknowledge of the Delta airlines will be gained.
CASE STUDY2Table of ContentsBackground......................................................................................................................................3Pestle Analysis.................................................................................................................................4Impact of Globalization on Stakeholders.........................................................................................5VRIO analysis..................................................................................................................................6Porters Five Forces..........................................................................................................................6Industry competition................................................................................................................7Bargaining powers of Buyers...................................................................................................7Threat of new entrants to the marketplace...............................................................................8Bargaining Power of suppliers.................................................................................................8Threat of Substitutes................................................................................................................9SWOT analysis................................................................................................................................9Effect of globalization on corporate strategy.................................................................................13Conclusion.....................................................................................................................................13Reference.......................................................................................................................................15
CASE STUDY3IntroductionThe airline industry is a capital intensive industry that is required to spread the burden ofthe high cost rates in the multi million dollar jets and this only be achieved by cutting the groundtime in the airport gates and then maximizing the number of flights on a daily basis. In thisreport, the case study analysis will be made on the Delta Airlines. The detailed businessenvironment of the Delta Airlines will be explained along with its economic characteristics,changing drivers and the competitive situations. In making some of the strategic decisions on thefuture dimensions some of the economic traits and competitive conditions must be adopted. Thequalitative and the analytical tool like the use of the SWOT and the stakeholder theory will helpto develop and understand its future trends. In this report the analysis will cover up the maximumfeatures of the market size, the competitive rivalry, the development patterns along with thedifferent types of the distribution channels. BackgroundThe Delta Airline has its headquarters in Atlanta, Georgia, U.S and is regarded as thesecond largest airline in the World (Knapp, 2014). The Delta Airline is the one that operates atan international and domestic network and across all the major operations in the continent exceptfor Antarctica. The Delta Airline is regarded as the funding partner for the Sky Team AirlineAlliance. The Delta Airline began in 1924 and Huff Duster was the first one that madecommercial flying company which was later recognized for its success and value and was finallyrenamed to Delta Air Services (Chen et al. 2013). With time the organization broadened itsservices and made a focused vision on its expansion to the different horizons. From 2012, it isevident that the services of Delta are of 572 destinations and in 65 countries and has operated5766 daily flights and with almost more than 80000 people worldwide (Ritchey et al. 2013). The
CASE STUDY4mission and vision of the CEO of the DELTA airlines is to build an employee driven, customerfocused culture and a spirit of innovation as its foundation towards its success. He is committedtowards putting in the shared values of integrity, honesty, perseverance and respect at the core ofalmost every decision. He is more focused into operating the Delta Airlines as the one to be themost reliable and customer centric and also trying to expand in the global footprint and lastly tobecome the number one choice in terms of travel for the next generations. The leadership qualityof the CEO can be well estimated from his words stating that taking care of his people whenasked to sum up his job in five words.Pestle AnalysisPoliticalThe political forces will make a deep impact in the business of the airlines. The businessspan to the different country and to the political and the government environment has made themfall a direct impact on them. Major de regulations of 1978 were the hindrances that has beenreduced to barriers before the industry of the airlines. Major governments has partneredthemselves with the airlines (Welsh, 2014). Eventually with this help they have eased theregulatory environment that is actually in favor of the DeltaEconomicAfter 1930 the downturns has affected the business airlines in a deep way that has beenmade evident to the business economy class travelers even in case of the slide downs (Luo,2014). The airline company and the passengers too were forced to cut down the costs.Recessions influenced the rate of the business and their profits in the global economy. These
CASE STUDY5things influenced the rate of the ability of the customers. The rising middle class is beneficial forthe business of the Delta airlines and overall the changes were increased for their demands. SocialThe delta airlines almost owns 80,000 people and the generation of the airline industry isan important factor that is behind the popularity of the industry (Kalantzis, 2017). The highdemand raising is primarily due to the population increase of the millennial generation. Thesociety that includes the business and the people is benefitted by the network f the fights. Manysocio cultural factors affect its industry that has been mutually beneficial between the airlineindustry and its society.TechnologicalIn the airline industry, the range of the fuel efficiency varies to its convenience and heretechnology plays an important part. Better and more fuel efficiency in the aircrafts are muchneeded at this time. These are of higher demand in the market and with the upgradation of theinformation technology these will highly help in its growth and prosperity. Technology hasadded its pace with the lives of the people in booking in checking the availability of the ticketsthrough the use o their cell phones.EnvironmentalIt cannot be denied that the airline industry is solely responsible for their emissions in theglobal market by 2%. (Dempsey, 2014) Though the airlines have focused to reduce theiremissions and specially their cut down of the CO2emission upto half from 1990. Delta takes thisvery seriously and has made necessary improvements on it. It has achieved the loyalty of thecustomers and has grown a larger customer base than its rivals.
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