Swot Analysis of Delta Airlines
SWOT analysis Strength 1. Innovation: * “Track check bags” 2. Market share leadership 3.
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Strong management team 4. Strong brand equity 5. Flights are usually on time 6. The merger and acquisition | Weakness * The number of cancelling flights is a little high * The customer service is bad because in some occasion the customer can’t found the delta representative in the airport. Lack of online presence * In some aircrafts the seats are uncomfortable and narrow | Opportunities * Emerging markets and expansion abroad * Product and services expansion * Development of new technologies and the web | Threats * Competition * Economic slowdown and crises * External changes * Lower cost competitors * Price wars and revolution * Oil Price growth * Terrorism| Strength: 1. Innovation: * Delta earned the top 5 in the rank of most innovative airline * “Track checking bag” new service launched by Delta to allow customer to track their luggage in real-time.
Also they can do it via their smartphone using the bag tag number. * On board the plan delta offers the full-lie bed in the business Elite. Also it plans to offer to the flat bed seat to the entire international fleet. * Gogo’s internet service is equipped in all the aircrafts * In 18 airports Delta installed the “wireless power-pad” 2. Market share leadership: * Delta ranks the first place in the airline domestic market share with 16% * Due to its strong financial strategy Delta was the only airline company which wasn’t affect by the event of September 2001 3.
Strong management team: * More than 80,646 employees work in Delta * by providing entertainment in the plan and being helpful with travelers * Through its leadership Mike (the executive vice president of Human resource an labor Relation) established an entire culture in the company. So employees worked as a team not individually, which lead them to focus on the quality of their services. 4. Strong brand equity * “welcome change welcome new delta” * Due to its brand and history Delta still until now challenging competitors. . Flights on time * In 2013 412,617 of flight are on time which means 80, 89% of all the flights that Delta operates arrive just in time. * This percentage and statistics evolved since 2004 6. The merger and acquisition * Through it 2 last merger with Northwest and virgin airline, Delta become the second largest airline of passengers * In addition this situation allows the company to make many alliance with different airport in different countries.
And the company did a huge mistake for using those plan for long time flight (so the customer in this case will be disappointed and they admitted that they have spent the worst flight on their life) Opportunities 1. Emerging market and expansion aboard : * This situation leads Delta to increase its market share * The company preview to include flights to Romania, Dubai and other countries. * From this expansion the company’s revenues increase by 20u 2. Product and service expansion Sky-bonus is a service designed for company to collect points and become member in delta sky club. * There is also the award business Elite service, sky Mile and many other services. 3. Development of new technologies * Technologies nowadays is growing faster so delta should be aware of this situation and try to search and innovate some technologies which can help the customer and offer to him a high level of satisfaction. Threats 1. Competition * local competitors like southwest airline, US airways . Economic slowdown and crises * Can decrease the number of customers, thus the revenues of Delta will decrease also. * Especially the European crises which affects many businessmen and leads to their bankruptcy 3. External changes * For example the taxation, political situations, wars. 4. Lower cost competitors * This situation can affects badly company especially they use lower cost and lower service to offer to their customer cheaper tickets for their flights 5. Price wars and revolution In this case the company should delayed flights, as a consequence its revenue will decrease. 6. Oil price growth * Oil price increase every years which is one of the major cost of the company 7. Terrorism http://www. airlinequality. com/Product/Yseat-DL. htm http://news. delta. com/index. php? s=18&item=88 http://dealbook. on. nytimes. com/Public/Deals? symbol=DAL https://www. worldagentdirect. com/deltaair/products/index. do http://www. transtats. bts. gov/HomeDrillChart. asp? URL_SelectYear=2013&URL_SelectMonth=1&URL_Time=1&URL_Selection=1