MGMT 647
May 15th, 2014
Individual Project
Table of Contents
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Summary of External and Internal situation of Delta Air Lines Technological advancements, mergers and acquisitions, volatility in crude oil prices, currency depreciation, ground staff management and baggage handling are the major external factors for Delta Air Lines. The Monroe oil refinery purchased by Delta Air Lines provides an opportunity for the company to deal with the volatility in crude oil prices. Presently Delta Airline is over dependent on the North American markets, which had experienced a major hit during the recession in 2008. Mergers and Acquisitions and the alliances with airlines in the non US markets generates an opportunity for Delta to gain access to growing/emerging markets such as China and India and diversify its activities throughout the globe. Technological developments in the industry helps the airlines to save on fuel costs, as they can purchase fuel efficient aircrafts to save long-run costs. Customers can avail better service due to the technological developments in mobile applications and ecommerce activities such as online flight booking and payments. This promotes convenience and increases customer satisfaction. The level of competition in the industry is high and with very little differentiation in product and services it is difficult tfor the airlines to generate and maintain customer loyalty. Delta Airline has always focused on technological advancements to provide a customized experience to its travelers. With 11 hub locations, the company dominates its presence offering more than 4900 flights daily to 59 destinations in the world. The company is in a stable financial position at present and is keen in acquiring stake in Non US airlines to optimize the use of its resources.
Delta is experiencing concerns with delays and ground staff