Delta Airlines: Blue Ocean and Deep Dive Strategy & Silicon Valley

This report provides a comprehensive analysis of Delta Airlines' strategic initiatives, focusing on the application of Blue Ocean and Deep Dive strategies. The report explores how Delta Airlines can reduce costs and create new markets by improving check-in times and increasing flight frequency, targeting customers who prefer car travel. It suggests strategies such as reducing airfare, minimizing stopover times, and eliminating certain amenities to create a blue ocean market. The report also examines the Deep Dive strategy, emphasizing the importance of SWOT analysis, customer observation, and rapid prototyping for new service innovations. Furthermore, the report delves into critical factors in strategic planning, including leadership changes, sustainability considerations, and the characteristics of good versus bad companies. Additionally, the report reviews the Silicon Valley Cup of Choice, highlighting the informal charm, customer preference, and rapid growth of Philz Coffee chain, and why it deserves the award.

Running head: Delta Airlines: Blue Ocean And Deep Dive Strategy & Silicon Valley's Cup Of Choice, April 19,
2016
DELTA AIRLINES: BLUE OCEAN AND DEEP DIVE
STRATEGY
&
SILICON VALLEY'S CUP OF CHOICE, APRIL 19, 2016

Delta Airlines: Blue Ocean And Deep Dive Strategy & Silicon Valley's Cup Of Choice, April 19, 2016 2
Table of Contents
Assignment: Delta Airlines 3
Review of the article: Silicon Cup of Choice Award 4
Reference List 5

Delta Airlines: Blue Ocean And Deep Dive Strategy & Silicon Valley's Cup Of Choice, April 19, 2016 3
Assignment: Delta Airlines
Blue Ocean strategy and Deep dive strategy
Application of Blue Ocean strategy by Delta Airlines
Delta airlines can reduce the cost of the ticket and create a new market for its service.
As per Shin et al. (2015), improve in check in times and increasing the frequency of flights
can help them tap the population who preferred car ride. The customer can benefit from the
low cost and high speed of travel. In order to create a blue ocean market for itself should
reduce air fare, stopover time and capital (Kim & Mauborgne, 2014).
To reduce the air fare the airlines should eliminate free food and beverage facility, reduce the
ground and air staff. The airline can also target routes where they can get the first mover
advantage. As per Alghamdi, (2016), Delta airline should raise the safety standards of the
airlines and point to point direct Flight and increase the reliability of the service by on time
takeoff and arrival. It should provide the facility of web registration, express booking and
budget hotel in order to capture the new market and create an uncontested market space
(Verbeke, 2013).
Application of Deep Dive strategy
As per Lawton (2017), Deep dive strategy can be employed by delta airlines when the
company wants to make new process or service innovations. It should create a team which
will conduct a SWOT analysis of the organisation and they will brainstorm the ideas which
will cater to the customer needs.
Prototype of the proposed solutions should be created rapidly. It is very important for the
team involved in deep dive strategy making to observe and listen to the customers.
Accordingly they can think of solutions which will help them to reach out to new customers.
The management at the Delta airlines to apply the deep dive strategy should dive deeper into
the problems and seek clarity of the issue (Mellat-Parast et al. 2015).
Factors to be considered in strategic planning
Leadership changes –As per Lawton (2017), the leader should be able to exercise the skills
so that his leadership skills can be appreciated. The leadership is capable of influencing the
subordinates to achieve higher goals. A change in leadership affects the strategy
implementation. A strategy devised under one leader may not be approved by the other.
Constant changes in leadership make the organizations lose in terms of implementation of
strategic plans. It also hampers the strategy planning process.

Delta Airlines: Blue Ocean And Deep Dive Strategy & Silicon Valley's Cup Of Choice, April 19, 2016 4
Sustainability- For strategic sustainability the organization needs to identify the issues where
the pressures are more likely to be. The identification of issues which are vital for
commercial growth should be done. The mapping of long term and short term ambition for
sustainability vision should be done. A robust sustainability program should be developed
which will include the key performance indicators, enablers, milestones and measurable
targets (Verbeke, 2013).
Good vs bad company -In a bad company the strategic planning will be written but never
implemented and vice versa. In a good company the strategic plan should be such that the
plan is capable to adapt to the changes in the market. In a bad company the plan would not be
capable of adapting to the market changes unlike a good company (Lawton, 2017). In a bad
company the leadership will never be efficient and committed enough to make the change in
strategy. A good company is characterized by strong leadership.
Review of the article: Silicon Cup of Choice Award
The Silicon Valley Cup of Choice should be given to Philz Coffee chain because of the
following reasons. It has a informal charm unlike its competitors Starbucks and Blue Bottle.
As per forbes.com (2016), Unlike Starbucks which is characterized by corporate uniformity,
the Philz is characterized by informal environment. They are more concerned with the
preference of the customers than they are with their business margins. The company has an
annual sale which is more than $1.7 million per store as compared to $1.2 million. The
company has recorded a sale growth of 60% last year. The Philz has plans to expand its
market by opening 1000 stores across the nation in an attempt to challenge its competitors.
The company also gives importance in hiring the right person. It is to be noted that so far the
company has interviewed 300 people and hired only 30 people for the stores located at east
coast. The product of Philz that is coffee is different from its competitors. The company does
not have espresso based drink; it is famous for Tesora which is a highly caffeinated medium
blend house roast (philzcoffee.com (2017). The signature ingredient Tesora was developed
after spending seven years on it. The Philz coffee chain rightly deserve the award due to its
differentiated product, rapid growth in market share and sale and better connection with
people.

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