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Strategic management in Delta Airlines - Case Study Example

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Aviation industry is regarded highly competitive, requiring technical expertise and safety measures to be adopted.But the core competency that make two similar airlines differentiate are dependent on the role played by customers, people and employees irrespective of machinery and tangible assets…
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Strategic management in Delta Airlines
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Download file to see previous pages Aviation industry is regarded highly competitive, requiring technical expertise and safety measures to be adopted.But the core competency that make two similar airlines differentiate are dependent on the role played by customers, people and employees irrespective of machinery and tangible assets. The implications generated through a slight deviation in not meeting the potential needs of general stakeholders could be pervasive, influencing the culture of an organization, its structure and strategies encompassing operational procedures (Appelbaum, & Fewster, 2004). At present Delta Airlines is adept at serving one sixty million clients per annum, offering travel to near three fifty destinations across seventy countries (Delta, 2011). Strategy is being driven in the US aviation sector by two factors that emerged right after the deregulation took place in 1978. One is the worldwide safety concern and the other being the increased perceptions of clients in relation to the services offered by the company. Studies carried out by researchers have revealed that poor service acquisition and accidents in aviation are not always linked to the technical faults yet sometimes there are human factors involved. “Sub-optimization” or lack of proper management practices with regard to decision making, communication, employee motivation could bring in a rapid turnover in client share, market position, loss of tangible assets possessed by the firm, and in more severe circumstances this could lead to “loss of life”. ...
r mettle in terms of devising the most appropriate strategy for their respective firm that could offer competitive advantage, developing a core competency for the organization. Also the significance of formulating well structured corporate strategies has often been neglected. The conventional nature of strategic management has been perceived as handling employee disputes within the firm and to supervise some of the administrative tasks but with the passage of time HRM has gained the reputation as a phenomenon that affects the overall strategic framework of a company, simultaneously strategic managers also tried to adapt to the changing work environment with the primary thrust being properly implementing well planned initiatives (Swiercz, & Spencer, 1992). In April 1994, Delta Airlines tried to amend its current strategic demeanor by launching “Leadership 7.5” a programme that benefited the company in terms of gaining excessive profits by curtailing company’s expenditure in comparison to the competition prevalent in the industry. It so happened that emerging company by the name of “Southwestern Airlines” managed to maintain a firm market share by initiating low cost strategies, that were favored by target customers as they were being offered cheap fare rates by the company. That resulted in a rapid turnover since 1990 in prior established firms including Delta Airlines. For organizations to survive in a globally competitive environment, all key players have to redefine their market strategies with the alternating market situation. The aim is to get the maximum benefit with limited monetary spending Although Delta Airlines excelled in offering full service package to the travelers yet half-filled flights forged it to develop a corporate strategy with the main ...Download file to see next pagesRead More
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