Delta Strategic Analysis

A Case Analysis for
Strategic Management

Table of Contents 1. Company Information 7 1.1 Organization History 7 1.2 Leadership 8 1.3 Financial success measures 8 1.4 Mission 9 1.5 Business Level Strategy 9 1.6 Corporate Strategy 9 2. General Environment Analysis 10 2.1 Demographic Analysis 10 2.1.1 Historical Segmentation 10 2.1.2 Current and Future Segmentation 10 2.1.3 International Travel 12 2.2 Economic Analysis 13 2.2.1 Inflation Rates - impact on the airline industry 13 2.2.2 Interest Rates - impact on the airline industry 15 2.2.3 Trade Surplus 16 2.3 Political/Legal 17 2.3.1 Environmental Issues 17 2.3.2 Tax Concerns 18 2.3.3 Security 18 2.4 Sociocultural Environment 18 2.4.1 Effects on Consumers 18 2.4.2 Emerging Markets 19 2.4.3 Maintaining Customer Loyalty 19 2.5 Technological Assessment of the Airline Industry Environment 19 2.5.1 Alternative Fuels 20 2.5.2 Improved Customer Experiences through Technology 20 2.5.3 Upgraded IT for facilities and infrastructure 22 2.6 Global Assessment 22 2.6.1 Changing Existing Markets 22 2.6.2 New Global Markets 22 2.6.3 Important International Political Events 23 2.6.4 Critical Cultural and Institutional Characteristics 23 3. Industry Analysis 24 3.1 Threat of New Entrants 24 3.1.1 Economies of Scale 24 3.1.2 Product Differentiation 25 3.1.3 Capital Investment 25 3.1.4 Switching Costs 25 3.1.5 Access to Distribution Channels 26 3.1.6 Cost Disadvantages Independent of Scale 27 3.1.7 Government Policy 28 3.1.8 Expected Retaliation 29 3.1.9 Threat of New Entrants Assessment 29 3.2 Bargaining Power of Suppliers 29 3.2.1 Fuel Suppliers 30 3.2.2 Aircraft Suppliers 30 3.2.3 Bargaining Power of Suppliers Assessment 31 3.3 Bargaining Power of Buyers 31 3.3.1 Price 31 3.3.2 Service 33 3.3.3 Quality 33 3.3.4 Bargaining Power of Buyers Assessment 34 3.4 Threat of

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