Question

Delta airlines: Strategic alternatives: (also discussed advantages/disadvantages).

Answer 1

Strategic alternatives for Delta Airlines

1. cost leadership:- this is a strategy which is used by businessman in such a way so that they provide their product and services to the customer at lower cost as compared to other businessman in the same industry. this is followed by Delta Airlines, they also reduced the cost of air travelling of different stations. because of this strategy, customers can access easily their services and can book facilities from different geographic areas. this improved the profit and revenue of the company and Delta Airlines become the topper of the airline industry as the most profitable company.

advantages:- achievement of greater profit margin and revenue, provide lowesr airfare to the consumers, able to steal market share from low cost carriers.

disadvantages:- able to decrease revenue if sales will not increase proportionately, unsuccessful attempts in the past

2. differentiation strategy:- it is a strategy which puts aims on to differentiate their product or service or to provide the uniqueness to their product or service in terms of customer service, brand image, quality etc so that they can compete with their competitior in the same industry. Delta uses radio frequency to knoe the location of baggage via internet. it also uses the technologies such as facebook and twitter to make contacts with its passengers. for this it also got award as Top Tech Friendly U.S Airline in 2012. Delta airlines opted this strategy to differentiate themselves from other airlines. they did partnership with other travel corporations like hotels and car rentals. they collected information about passengers so that they can fulfil the individual' needs at the time of travelling. they gave hotel offers to the the travellers who have overnight flights and also offered deals to day trippers.

advantages;- encourage brand loyality, able to atrract customers in commoditized industry, able to decrease the number of substitutes, focus less on price competition.

disadvantages:- because of change in business structure, there is loss in current customers, there is increment in implementation cost.

3. stability strategy:- it is a strategy in which company or firm do not invest money on the expansion of the business. they do not venture in the new markaet and don't think about the introduction of the new product. this is the current strategy of Delta Airlines.

advantages:- steady cashflow, attractive as an employer, become second largest airline in the world.

disadvantages:- growth rate is low, no attraction to investors, less internal movement

4. Growth strategy:- it is a strategy which puts aims at winning the largest market share at tle lowest expenses of short term earnings. growth strategies are market penetration, product expansion, diversification, merger and aquisition, market expansion etc. Delta Airlines used the merger and aquisition strategy to grow its business and to attain the position in the market. Delta bought the Chicago and Southern airlines and developed its first international flight at Caribbean and caracas. after that company made many merger and Aqisitition. because of this strategy, Delta earns a lot of routes and facilities from those airlines and increases its revenues.

advantages:- incremant in revenue, increase attraction to the investors.

disadvantages:- increment in risk factor, increment in cost, there is the chances of instability in quick expansion.

from the above analysis i recommend differentiation strategy to Delta Airlines

company should provides the services to their customers which are not providing by other airlines such as free Wi-Fi to their consumers. it should use that information which they have about their passengers to take the advantages. utilization of this information to the marketing efforts will definitely help to earn differentiation in the industry. company should use innovative solutions to increase the business revenue. they should eliminate the fees of bag checking it will increase the low cost customers as it works as incentive to those who prefer Jetblue or Southwest because of low cost.