When using The Business Strategy Diamond, Delta Airlines is able to answer 5 major questions to make sure that their strategy fits together.
Arenas:
- Currently Delta Airlines operates as a passenger, cargo, & mail carrier and provides 13,000 daily flights.
- They pioneered the "spoke and hub system" meaning they provide service to smaller cities (the spoke) and instead of flying them to their destination non-stop they bring passengers, mail, and cargo to major cities (the hub). This allows for more a more efficient use of resources.
- To read more go to http://en.wikipedia.org/wiki/Spoke-hub_distribution_paradigm
- The market segment is divide into 2 targeted segments
- Business Travelers - the most profitable
- Leisure Travelers - not as profitable
Vehicles:
- From the beginning Delta Airlines used acquisitions or mergers with other carriers as a strategy to grow their operations to what you see today. Below are the airlines that have been acquired over the years.
- Chicago and Southern Airlines
- Delaware Airlines
- Northeast Airlines
- Western Airlines
- Pan-Am Airlines
- Northwest Airlines (most recently)
- Delta has continued to expand their operations through joint ventures with Air France-KLM and Alitalia.
Differentiators:
- Delta Airlines has a long standing tradition of providing excellent customer service
- They are looked upon as a leader in the industry.
- They are not a low-cost leader and create value through pricing.
- The product that is offered is reliable.
Staging & Pacing:
- In the 90's Delta Airlines acquired Pan-Am Airlines and expanded their presence as an international carrier with new European routes.
- With the recent acquisition of Northwest Airlines, Delta has expanded into the Asian markets.
With answering all these questions Delta Airlines is able to shape an Intended Strategy into a realized Strategy that will help in the implementation process.
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