The Low Cost Strategy of Delta Company - Assignment Example

The use of technology has been the key factor that allowed both these firms to remain profitable. However, it is also clear that the technology used was disruptive thus allowing these firms to control costs and bring in more efficiency within their operations.

It is clear from the facts provided in the case study that JetBlue and Southwest adapted technology and blended it perfectly with the customer needs. The use of live TV, a paperless environment, online ticketing services, effective use of laptops by the pilots as well as the use of routes that were less served by others were some of the key activities performed by these firms to remain profitable and leading airlines in the industry. Pilots were using emails to forward their suggestions whereas the flight maintained records were being computerized thus making the technology the key part of the overall operations of these airliners.

It is, however, critical to note that both these firms also actually focused on meeting customer needs. The CEO of JetBlue used to interact directly with the customers thus offering a firsthand experience of customer expectations and these airliners responded to such expectations by offering customers what they needed.2)It is relatively difficult for the larger airliners to maintain the low-cost carriers due to various reasons. Not managing disruptive technology effectively is one of the reasons why such larger airliners actually could not keep pace with the more agile and low-cost carriers.

The complacency of the organizations along with the already established rigid procedures may have further restricted the ability of these firms to execute the low-cost strategy. These services were operated by already the same people who were also responsible for operating the premium services of the airliners. Bureaucracy established unions, and other organizational factors made it relatively difficult for larger firms to capitalize on the opportunities offered by the low-cost carriers.

Though the airliners industry was deregulated during the 1970s however, the presence of unionized labor made it relatively difficult for such firms to focus on reducing the cost and achieve the same degree of efficiency and agility. 

These firms therefore essentially failed because they were unable to overcome their organizational bureaucracies as well as not efficient at utilizing technology which was different and disruptive in the industry. To manage such services, a more robust technology was required to operate successfully.