Question

Delta airlines: Internal analysis of firms value chain. Identify which value chain activities are creating value for the firm.

Answer 1

Delta Airlines is one of the biggest airlines services of America. Services were introduced in America in way back in 1920’s and since then it has sustained its services through its value chain activities and policies. Let’s have a look at the important value chains created by Delta Airlines in due course of its evolutionary time and the most significant ones, which has ensured its growth over the years-

Price comparison for Air tickets- Comparing the price from other airlines, it is well understood that Delta Airlines offer cheaper services without compromising on the quality.

Travel time and schedule- Due to the direct connecting flight and better operational skills, Delta Airlines is far ahead than its other business rivals such as United, Southwest and American airlines.

Perceived service ratings- While comparing the service ratings, its quite evident that Delta airlines has better ratings than others.

Wider coverage having different destinations- Compared to the airlines, Delta airlines has maximum no. of countries, hence attracting maximum no. of footfalls which also contributes quite heavily in its revenues.

If we look at the above value chains, then it’s quite evident that all the factors add up and help Delta Airlines to survive and excel in its long run. But certainly Price comparison and wider coverage are the two main values which give it a decisive edge over the other Airlines.