Delta Airlines Competitive Strategy

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1. Identify whether your company has a competitive advantage or disadvantage in its primary industry. My company Delta Airline has a competitive advantage because its profitability is greater than the average profitability of all companies in its industry. It competitive advantage come from Focus Differentiation. I choose this because Delta Airline is focus on a certain segment and customizes its offering to the needs of that particular segment through the addition of features and function. The functional strategy that supports the company's business level strategy is differentiation. The foundation of Delta Airline differentiation is its customer service throughout the travel experience, premium in-flight offerings and rewards programs for…show more content…
Quality as Excellence and Reliability. According to the text book, a product is said to have superior quality when customer perceive that its attributes provide them with higher utility than the attributes of product sold by rival. Delta Airline has attributes such as their maintenance expertise, reliability and performance. Delta Airline has historically had a very good maintenance operation. Delta Airline has reduced its number of maintenance related cancellations by more than 90% since 2010. This has led to a precise increase in the number of days in which Delta has completed every scheduled mainline flight. As a result of this performance, Delta Airline is now the most reliable carrier among the major U.S. airlines across numerous metrics. Throughout the first three quarters of 2014, Delta Airline had the best completion rate, the best on time performance, and the lowest mishandled bag rate of the top four U.S. airlines. Atlanta is the world's busiest airport, and Delta Airline handles 2,000 flights a day there, accounting for 80% of the traffic at peak…show more content…
Innovation is the act of creating new products or processes. In 2007, after emerging from bankruptcy, Delta airline decided that they will be different. Their first step was to adjust along with other airlines to new market realities. Delta needed to add scale and expand their geographic reach by merging with another U.S. carrier and partnering with foreign ones. Second step was the need to revamp and reorganize their fleet and airport operations. And third was the need to change the pricing model. A long side, Delta Airline started off with an employee profit-sharing program that continues to differentiate them from their peers. A year after their 2008 merger with Northwest Airlines, they added a stock ownership plan which was also unique in the airline industry that gave their pilots, flight attendants, ground crew members, and support staff 15% of the company’s equity. Delta airline have reclaimed their reservations system, becoming the only U.S. airline to own and control this key operations data. Delta Airline have also deepened their foreign partnerships by buying a minority stake in three overseas carriers namely Aeroméxico, Brazil’s GOL, and the UK’s Virgin Atlantic and also strengthening their existing alliance with Air France and KLM. In addition, Delta Airline has also moved toward vertical integration and better management of their fuel costs by acquiring an oil refinery a decision that shocked both aviation and oil industry observers. Delta has recently
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