Delta air lines Case Study Example | Topics and Well Written Essays - 2750 words

Delta air lines - Case Study Example Three of the most important factors are innovation, quality and inventory reduction. Core values include: safety, high service quality and customer wants and needs. In order to improve logistics, the company is aimed to concentrate on doing business with other carriers which allow it to involve larger orders. Goals and objectives are aimed to improve its current position on the market and increase profitability. A continuum of resource sustainability is to compose resources and capabilities characterized by their durability and imitability. Financial goal is to increase sales and liquidity of business. The policy of safety adopted by airlines will be the main strategic criteria over the next years (Delta Airline News, 2006; Dove-Morse, 2004). Control of interest rates influences the extent of consumer credit and hence the size of an individual's budget, as will levels of taxation. During periods of high inflation the government should well introduce measures to control prices on flights. The main factor is that airline industry operates on the international arena and a major influence on price is the currency exchange rate which fluctuates according to the state of the economy. Increasing tariffs and quotas force carriers to find new ways to reduce transportation costs which lowing quality of their service. With profit margins collapsing, competitors are struggling to adjust. Unemployment rate is high in airline industry: approximately 7,4%. During the period of recession unemployment rate was doubled reducing buying capacity of potential market (Delta Air Lines.2006). Technological forces generate problem-solving inventions. Airline target is on average as dependent on reliable information technology as any other businesses. Improvements in cargo ships and handling equipment, increasing containerization, applications of IT to scheduling and controlling shipments and to customs procedures, new plains, and a host of other technological advances and innovations have reduced the costs of services and information. On the other hand, airline technology cost is one of the highest among other industries. The culture and structure of Apple develop over time and in response to a complex set of factors. Today, customer service in airlines relies on reputation and trustworthiness and this no less true in the new forms of system-service. In fields such as package delivery and money management, consumers are seeking indications that their risks will be minimised or eliminated. For these kinds of consumer acts, customer service plays an essential role in assuaging the fears of consumers by projecting an image of trustworthiness and expertise. Delta Airlines has competitors, but they do not have a great influence on the company's revenue. The presence of substitute services like trains, ships or automobiles transportation can lower service attractiveness and profitability as well as the price levels. The events of 11/09 and recent crashes of Boeing planes occurred these years reduce the attractiveness of airline industry. "The company has lost some $6.1 billion since the start of 2001 from its airline operations, according to First Call, which tracks corporate earnings"(Isidore, 2005). Many potential passengers prefer to use alternative transport even if it takes more time to get to the place of destination. In this case, the bargaining power of customers is crucial. In spite of the fact that