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Essay / Research Paper Abstract
The airline industry changed on September the Eleventh 2001. The attacks on the World Trade Center changed the way the industry was seen as needed to operate. This 11 page paper consider how the airline Delta has reacted to this and other influences and the way the strategy should continue. The paper focuses on the way that competative advantages may be developed though the develop of const advantages, differentiation, the use of strategic alliances and the value of marketing. The bibliography cites 10 sources.
Page Count:
11 pages (~225 words per page)
File: TS14_TEdelta1.rtf
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Unformatted sample text from the term paper:
corporate strategy. The way in which a competitive advantage is gained and then maintained should be the focus. If we consider the well known airline company Delta, the past struggles
appear to have been from a lack of developing any competitive advantage. Deltas history is mixed, the performance of the company in recent years has improved under the leadership
of the current Chief Executive Leo Mullin who is turning the company around (Hammonds, 2000). In the three years he has been in charge there were improvements in profits and
operations, however, on key factor remained. The company was noted by many commentators that the company still had a very high vulnerability to competition especially from the low cost carriers
(Hammonds, 2000). This was the result of a lack of competitive strength due to weak market perception and no real competitive advantage. If we look at the strategies that Delta
is starting to follow and should continue to follow it appears that this is the target; to increase competitive strength in terms of market position and customer perception through the
building of a competitive advantage. Porter argued that competitive advantage might come in two forms; that of cost advantage of by way of differentiation (Mintzberg et al, 1998). Cost
advantage is where a company has lower costs than its rivals in producing the goods or services (Mintzberg et al, 1998). This means the company has a higher profit margin.
It does not mean it is offering goods to the market at a lower rate. This is an advantage that can only be open to a single competitor in any
market, only one company may have this position. The cost advantage may be in place as a result of economies of scale or achieve by way of better increased operating
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