Delta Airlines Plays Catch-Up
1. What business risks would Delta is taking if it decided not to catch up with industry leaders in using IT to gain a competitive advantage?
Delta would fall behind the industry and its customer expectations. If Delta’s business processes were significantly inefficient and ineffective compared with its competitors, it would lose business. Airline customers are typically operating under time constraints and pressures to catch flights and connections, and they do not want to be inconvenienced by inefficient and ineffective business processes.
2. What competitive advantages can an airline gain by using DSS and EIS?
An airline can use both DSSs and EISs to uncover areas where the company can create competitive advantages and perhaps first-mover advantages such as self-check in and printing boarding passes from home. First-mover advantages can be enormous and place an organization in the position to significantly impact its market share. A fast follower can also increase its market share by tagging onto the first-movers ideas. It also has the advantage of avoiding some of the mistakes or pitfalls that the first-mover might have made. Of course, a fast follower will only obtain a temporary advantage, as many competitors will begin to implement the innovative IT system.
3. What other industries could potentially benefit from the use of yield management systems?
Almost all industries could benefit from the use of a yield management system. Like in health care industry for doctor visits and even the telecommunications industry for shared modem services.
4. How can American and United use customer information to gain a competitive?
Both airlines used their innovative IT systems to gain valuable business intelligence into their customer information. They conceived and rolled out hugely successful frequent flyer programs, which increased the likelihood that frequent business travelers, their most profitable customers, would fly with them
Delta would fall behind the industry and its customer expectations. If Delta’s business processes were significantly inefficient and ineffective compared with its competitors, it would lose business. Airline customers are typically operating under time constraints and pressures to catch flights and connections, and they do not want to be inconvenienced by inefficient and ineffective business processes.
2. What competitive advantages can an airline gain by using DSS and EIS?
An airline can use both DSSs and EISs to uncover areas where the company can create competitive advantages and perhaps first-mover advantages such as self-check in and printing boarding passes from home. First-mover advantages can be enormous and place an organization in the position to significantly impact its market share. A fast follower can also increase its market share by tagging onto the first-movers ideas. It also has the advantage of avoiding some of the mistakes or pitfalls that the first-mover might have made. Of course, a fast follower will only obtain a temporary advantage, as many competitors will begin to implement the innovative IT system.
3. What other industries could potentially benefit from the use of yield management systems?
Almost all industries could benefit from the use of a yield management system. Like in health care industry for doctor visits and even the telecommunications industry for shared modem services.
4. How can American and United use customer information to gain a competitive?
Both airlines used their innovative IT systems to gain valuable business intelligence into their customer information. They conceived and rolled out hugely successful frequent flyer programs, which increased the likelihood that frequent business travelers, their most profitable customers, would fly with them