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Introduction
One of the highly competitive industries in the global marketplace is the airline sector mainly because of the focus on the variant service experience. Since the advent of social media platforms, a significant percentage of the customers have attained significant product and service knowledge from a wide range of organizations (Akbar & Kisilowski, 2020). An excellent example is a client browsing through the internet seeking the different package offers from various airlines. The approach fosters a prominent effect on the airlines strategic management initiative that spans competent marketing to proficiency in the organizational culture performance. Notably, Delta managements responsibility is to establish the profound essence of strategic management to boost financial, product, and service performance and the coordination scale among the workers.
Competition in the Airline Industry
There is a profound interdependent relationship between customer service experience and the pricing strategy in the airline industry. Over the decades, the airline sector is one area that has shown significant competition mainly because of the reliance on the service experience quotient. The study by Setiawan et al. (2020) indicates that the vital factor that renders competence is the ability of the airlines to build trust with the clients. Different variables influence the interdependent relationship. The researchers focus on airline competition under four gradients: trust, customer satisfaction, service quality, and price fairness. Primarily, the dynamic quotients significantly impact the competence outlier of the entities.
Service Quality as a Success Factor for Airline Businesses
The standard tool for measuring customer service quality is SERVQUAL, which focuses on comparing distinctive entities. The SERVQUAL components enshrine facility, assurance, employee, flight pattern, responsiveness, reliability, and customization. Setiawan et al. (2020) depict that service quality results from the interaction between workers, clients, and functional organizational culture. The various SERVQUAL elements contribute to measuring the perceived and the expected service experience. Understanding the outlying measuring quotient fosters attainment in the level of service quality overview and the airline industrys competence positioning.
Price Fairness as a Success Factor in Airline Businesses
One of the vital factors that significantly influence the consumers purchasing decisions is the pricing strategy. According to Setiawan et al. (2020), consumers seek the comparative essence of the product and service pricing relative to the attained value. Although different airlines target dynamic niche markets, the standard consumer behavioral aspect while making the purchasing decision is establishing core accrued value and worthiness. The lack of a significant performance quotient risks the overlay into the optimal relevance of the business strategy. The essential elements that define worthiness encompass needs, equality, and social norms. Different practices influence the interactive nature of pricing factors within airline businesses and relative price fairness. The customers approaches in the determination of price fairness engulf consumer knowledge and comparable options.
Social media platforms intensified information sharing and accessibility by the global consumer market. In this case, the paradigm shift from the conventional aspect involved empowering customers with adequate product and service knowledge hence fostering the balance of power between the airline enterprises and the clients negotiation ability. However, Setiawan et al. (2020) indicate that the negotiation enshrined the refocus on pricing against the competitors quotations and the types of packages. Notably, pricing is an initiative that significantly impacts the competence level of the airlines in the local and global marketplace despite the diversification in the market segments.
Customer Satisfaction as a Success Factor in Airline Businesses
Customer satisfaction is a factor that significantly contributes to the airline industrys competence level. According to Setiawan et al. (2020), the satisfaction levels among the consumers is an outcome measured by the service experience quotient. Therefore, it is relative to the cognitive reaction based on the perceived and expected service experience. Setiawan et al. (2020) further postulate that the central aspect of customer satisfaction is the measure of feelings among consumers, thus establishing interdependent core valuation. As a result, the researchers depict that the three-point scale demonstrating sufficiency in the customer satisfaction overview entails the satisfaction experience, expectation fulfillment, and the attained pleasure in the service. Customers subconsciously exploit the dynamic factors while weighing the satisfaction level consistent with the expected quotient and the profound consumer knowledge.
Consumer Trust as a Success Factor in Airline Businesses
Building trust between airlines and the consumers is an essential factor mainly because it influences dynamic elements in the spectrum. The airline business is prominently a service industry hence the reliance on clients judgment from the attained service experience. Therefore, Setiawan et al. (2020) indicate that trust is a consequence of consistency in providing services among clients relative to the pricing. The researchers articulate that understanding consumer need is difficult mainly because of the lack of apt connection with the target market. As a result, it is crucial to establish the core foundations of intensifying the relationship between airlines and customers. The client aligns the loyalty with a particular airline due to the built trust in the confidence of delivering highly competent services. It is the responsibility of the managerial team to ensure that the employees adhere to the ethical and moral values during service delivery mainly because of the influential quotient on the performance outlier for the consumers.
Competence as an Outcome in Airline Businesses
Competition in the airline industry is a multidimensional phenomenon mainly because of the intersection of distinct variables. The competition outline among airlines involves the consolidation of customer satisfaction, service quality, pricing, and trust. The interdependence between the various factors impacts the level of performance in the sector. Ideally, Setiawan et al. (2020) depict that the performance measure of the interdependent relationship enshrines the consideration of attaining a competitive market position. There are different challenges that the airline management teams encounter during the marketing process. The challenges entail the influence of technology in the evolution of consumer behavior and the emergence of niche consumer markets. It is the core mandate for the executive departments in airlines to restructure the ideological approach to strategic management. In this case, market players focus on improving the product performance and the service quotient based on the identified consumer needs as a formative aspect of enhancing customer satisfaction. The interplay of the various variables empowers airlines based on the phenomenal development of competitive advantages. Essentially, the nature of competition in the airline business involves the establishment of competence based on market position attained through the exploitation of interdependent variables.
PESTEL AND SWOT Analysis of Delta Airlines
Delta Airlines PESTEL Analysis
PESTEL analysis is an essential component in determining dynamic extrinsic factors influencing the Delta brand business. The distinctive elements include political, economic, social, technological, environmental, and legal. Assessing the interactive quotient and attained value from the interdependence fosters the derivation of crucial details regarding the companys market position and the operative elements in the marketplace (MBA Skool, 2020). The initiative aptly attributes to establishing indicators enhancing performance through strategic management.
Political Indicator
Delta airline is an international corporation that engages with individuals and government officials from different countries. It is an opportunity and a challenge mainly because of the dynamic political-based policies and governance structure (MBA Skool, 2020). An excellent example is the emergence of political instability in one of the countries the organization operates. The situation risks the movement of planes and operations in the region hence trickling down to the reduced financial flow. Therefore, politics is a factor that significantly affects the profitability and customer service experience within the Delta airlines domain.
Political policies aptly impact Delta airlines performance in a different spectrum due to the distinctive effect on strategic management. An excellent example of a factor that adeptly impacts the brand business is the change in the political policies and regulations. In 1978, the American government deregulated the conditions that intensified ease in a market entry in the U.SA (MBA Skool, 2020). The initiative proficiently influenced the market penetration hence posing the opportunity for boosting its investment to attain a competitive market position. The airline business is an essential economic pillar for countries mainly because of the accrued benefits acquired based on the acquisition of foreign currency and influx of visitors, increasing financial transactions locally. Therefore, different countries coordinate towards intensifying the value of airline business through the deregulation of dynamic policies, hindering intensified competence and influx of the transactional baseline. The formative aspect is a significant opportunity for the companys financial performance to render an advanced global market competence across different nations.
Economic Indicator
Air travel is an activity that prominently relies on dynamic economic factors locally and internationally. After the advent of the COVID-19 pandemic, countries implemented lockdown initiatives, limiting movement from one nation to another. The aspect intensified the risk of economic slowdown for the airline business. Research indicates that airlines like Delta rely on financial and business class passengers (MBA Skool, 2020). In this case, the restriction of movement and incorporation of social distance essence profoundly affected the pricing initiative due to the airlines consideration of the limitation of financial resources. The core foundation of the airline business involves the rate of capital flow in the economy. The economic slowdown fostered the cutting down of luxurious services to enhance the retention of attractive pricing for the customers. Ideally, Delta airlines focused on reducing services offered in the package based on pricing to retain the economic and business class passengers. Apart from the restriction of movement, other approaches that prominently influence the flow of financial resources in a country include the availability of credit and reduced interest rates. The capping of the regulations contributes to the increase of financial resources and, hence, the intensified demand for air travel.
Social Indicator
The quality of socio-economic factors among the passengers significantly impacts the business brand of Delta airlines. High social capital and dynamically performing sociological factors influence the air travel demand. According to research, millennials prefer air travel mainly because of the high-quality service experience and convenience (MBA Skool, 2020). As a result, the marketability due to the coherent increase in the populace for the millennials, thus the boost in the air travel business for Delta airlines. Despite the contributory factor concerning personality traits among the distinct generational groups, a different social indicator is the adept social capital offered locally and internationally through the flights. The flights render the gathering of passengers from different socio-cultural backgrounds. As a result, it is an opportunity for personnel to enhance their social capital through interaction and networking to foster an exchange of values under different domains. The intersection between aircraft business and the general public interest significantly contributes to the intensified global connectivity among personnel.
Technological Indicator
Technological advancement significantly influenced the business competence in the airline sector locally and globally. According to research, technology emerged across the gradients of improving engine performance, aircraft structure, and the attribution to environmental sustainability (MBA Skool, 2020). Delta airlines demonstrate its commitment to promoting sustainability through the adoption of dynamic technological advancements in various operational fields. In this case, the company utilized technology in enhancing comfort and range among the passengers during the travel experience hence indicating the significance of innovation. A different approach to improving the customer service experience through technology is the optimal use of clients data to customize packages to intensify the service quality. Primarily, Delta airlines focus on the elevation of its brand awareness through the use of clients details to enhance the innovative aspects in the customization of the products and services.
Legal Indicator
Employees in the airline business encounter dynamic challenges that risk the personal health index. Apart from the workers, various organizations incur optimal costs from certain issues relative to the fault in the operational platform. Delta airlines deal with laws from the local and international levels. It is crucial to establish approaches that elevate the essence of the practice while adhering to the foundational ethical and moral frameworks. Due to the existing dangers and threats posed among the distinct entities, it is vital to implement treaties and agreements as shields to the reputation and welfare of the parties involved. An excellent example is the settlement agreement in 2017 between Delta airlines and OSHA regarding the welfare of the employees dealing with cars (MBA Skool, 2020). Notably, the legal approach guarantees the organizations operability to boost performance outlier on distinctly associated dangers during operations. Legal ramifications mean a commitment by Delta airlines to promote sustainability based on enhancing laborers welfare and the public image of the institution.
Environmental Indicator
The intensification of human activities contributed to the degradation of natures aesthetic value. Aircrafts significantly attributed to the issue of environmental pollution due to the apt CO2 emission in the atmosphere. Delta airlines is committed to alleviating its 2% of the CO2 outflows through the incorporation of innovative technological solutions (MBA Skool, 2020). Notably, research indicates that Delta airlines ecological obligation fostered the acquisition of a sustainable identity and position globally. The initiative renders the attainment of a competitive market position in the niche of the consumers that uphold sustainability practices. Global warming is an environmental issue that is consequential to peoples living quotient. As a result, it is vital to establish core ideologies that elevate performance in the marketplace, such as the current trend on sustainability consumer belt that aligns its loyalties with companies that utilize dynamic, innovative aspects to protect, preserve, and restore natural resources.
Delta Airlines SWOT Analysis
Delta airlines is one of the international companies that offer significant competence to its competitors mainly because of the strategic management initiative. The organization focuses on improving service quality to amplify the clients loyalty to the business brand (Momin, 2021). Different intrinsic and extrinsic variables influence the performance of Delta Airlines in the marketplace. The distinctive elements include strengths, weaknesses, opportunities, and threats.
Strengths
Since the establishment of Delta airlines, the company has encountered distinct challenges and growth opportunities. In 2015, the organization filed for bankruptcy due to hitting the lowest record of flight operations globally (Momin, 2021). However, its strengths played a significant role in boosting the institutions financial position and competence level. The different Delta airlines strengths include a massive fleet, wide-ranging routes, brand value and image, financial situation, alliances and acquisitions, and reward programs. These quotients play a proficient role in boosting performance scale locally and internationally.
Weaknesses
Delta airlines encounter significant weakness mainly because of the structured framework on the operational baseline. One of the aspects that emerge as a weakness is a dependence on a singular marketplace. However, the company operates in different countries, and its primary operational base is North America (Momin, 2021). The adept investment of resources in North America is a weakness to the institution mainly because of the risk of influential factors, such as political instabilities, insecurities, and sociological and economic-based issues.
A different weakness for Delta airlines is the attrition of the workforce due to the reliance on proficiency to enhance competitive advantage. According to Monin (2021), one of the challenges among the employees enshrines the provision of standard operational services. In this case, it is the responsibility of the managerial team to invest in the training among the workers mainly because it elevates the standardized service experience and quotient among the entities. Ideally, one of the competitive advantages is the human resource management within the airline industry due to the comparative essence of coordination in the service delivery system.
A different weakness for Delta airlines is the concerns from clients and other stakeholders regarding the aircraft Airbus A220. According to Monin (2021), a significant percentage of the stakeholders showed concerns after the FAA flagged concerns regarding the identified issues with the engines. Delta airlines own a lot of aircrafts hence the importance of developing an initiative to eradicate the faulty systems. It is a weakness due to the apt concerns by customers based on the quality of the service experience and their safety.
Delta airlines optimally coordinate different flight operations that enhance the increase in the profitability scale. However, Monin (2021) argues that there is a significant gap within the marketing department and strategies. The main reason involves the determination of core approaches to boost the acquisition of competent marketing positions and the identification of niche markets across the spectrum. The advent of social media platforms fostered the diversification of clients preferential options on consumptive habits. It is the responsibility of the marketers to establish core strategies that enhance marketing efficacy and product knowledge among customers.
Opportunities
Social media marketing is the key to competent marketing across the diverse domain mainly because of the focus on adept sharing of product knowledge. The social media platforms significantly enhance the global market outreach for the consumers while intensifying the online presence (Momin, 2021). Primarily, it is vital to establish the core practices and approaches that boost the initiative across the Delta airlines spectrum. Apart from advertising to the clients, the organization attains insights regarding the customers needs in the marketplace.
A different opportunity for Delta airlines is expanding its business scale in the maintenance of aircraft. Monim (2021) argues that the company established a department for the maintenance, repair, and overhaul to ensure the standard levels of operations of the aircraft. The approach attributes an opportunity for the organization to generate profits by offering extensive services to different airlines. The practice is an initiative that further promotes sustainability mainly because of the focus on dynamic aspects of improving operational guidelines on aircraft conditions.
The emergence of the millennials is another opportunity for Delta airlines to exploit and maximize profits. Momin (2021) articulates that it is crucial that Delta airlines incorporate customized packaging for the millennials due to the proficient opportunity to increase the pool of financial resources. Excessive spending among millennials intensifies the competition to attain a leading market position. As a result, the core initiative to amplify the interdependence lies in determining profound factors of competitive advantages.
Threats
The advent of COVID-19 posed a significant threat to the operations of Delta airlines mainly because of the apt economic lockdown. According to Momin (2021), Delta airlines encountered significant financial losses due to the reduction in the fleet and an alteration to the consumptive scale. Apart from the economic slowdown, the institution faced the threat of dynamic uncertainties concerning the impact of coronavirus on the global population. Primarily, the researcher postulates that the revenue reduced by 71% of its annual income (Momin, 2021). COVID-19 pandemic is an issue that poses significant threats to the companys financial performance.
The presence of strict regulations on tax payments across different countries is another threat that profoundly impacts profit maximization. The strict adherence to the rules and laws fosters the obstacle toward proficiency in optimal service delivery and the influx of capital. Monim (2021) establishes that the presence of the regulations intensifies the performance quotient among the competitors. The distinct competitors against Delta airlines include JetBlue, American Airlines, SkyWest, Republic, British Airways, and United. The pandemic contributed to the increased costs apart from the intensifying the costs. Ideally, the approaches foster elevated fuel, raw materials, and labor expenses.
Delta Airlines Financial Condition
Delta airlines posed a significantly high financial performance during the 2021 fiscal year and the first quarter of 2022. According to the financial report, in the December quarter of 2021, the company incurred a GAAP pre-tax loss of $395 million, a pre-tax margin of at least 2%, causing the shares of $0.64 on the adjustment relative to the operating revenue of $9.5 billion (Atlanta, 2022). The quotient fostered a prominent impact on the dynamic overview of the total financial year. Ideally, the company incurred at least GAAP pre-tax income marked at $170 million. The 2021 fiscal year reported a total GAAP pre-tax income of $398 million and relatively operating revenue of $29.9 billion (Atlanta, 2022). Further, the adjustment fostered a pre-tax loss of $3.4 billion at an adjusted operating income of $26.7 million. According to the Delta airlines CEO, the company incurred a significant profit during the COVID-19 pandemic, causing its proficiency in leading in the American market (Atlanta, 2022). Ideally, Delta airlines financial condition is healthy mainly because of the capacity to establish optimal sustenance relative to the adept conditional value of the transactional baseline.
Delta Airlines Strategic Management Implementation
Since its establishment, Delta airlines has been one of the organizations whose profit performance is varied and unpredictable based on the business model. The organization competes in two different industries: the refinery and the airline. In the refinery sector, Delta focuses on the provision of jet fuel for its aircraft and third parties for a profitable transaction. According to Mckenna (2018), Deltas primary market is the U.S mainly because of the cap at 70%. In this case, the researcher argues that the companys core strategy enshrines concentrating on the domestic flights that account for the profound profitability margin within the American market. Additional services that the company offers intensify income generation engulf the maintenance and repair services of the third-party organizations.
Delta airlines offer distinctive services and products to the vast global market hence intensifying the competence outlier. Research by Mckenna (2018) indicated that Deltas intrinsic resources include customer service, marketing campaign, hub and spoke model, purchasing of old aircraft, vertical integration, and culture. Delta implemented dynamic strategies that enhance the optimal utilization of the available companys resources.
The company ensures highly competent customer service through the optimization of innovation and reconstruction of travel packages. The primary goal towards elevating customer service experience is to determine core variant factors on memorable travel quotient. In this case, Mckenna (2018) indicates that the firm uses its branded name as an identity among customers to determine the critical variant of reliable service experience. The Hub and Spoke business model enhances Deltas capacity to increase the number of flights for passengers hence pooling more revenue for the company. As one of the airlines with a maintenance and repair department, the firm focuses on purchasing older aircraft to render the reduced fixed costs on acquisition of new resources and facilities for operations. In a different spectrum, the organization fosters an elevated vertical integration based on the ownership of a refinery hence reducing fuel costs for the aircraft. Notably, the institution adeptly invests in the coordination and welfare of the employees reflected through the improved performance. There is an essential consistency among the dynamic intrinsic variables that profoundly influence service quality, customer satisfaction, loyalty, and trust-building.
Delta Airlines Issues
Different factors influence the competence level of Delta airlines in the local and global market. Over the decades, technological advancement contributed to the intensification of the competition mainly because of the emergence of a worldwide village. The concept enshrines the increased sharing of information across dynamic networks, thus boosting customer knowledge levels. Apart from the attainment of proficient insights, computerization provided a platform for the prominent marketability of products and services by airlines (Coursaris & Van Osch, 2020). As a result, companies focused on product and service differentiation to develop a competitive advantage. One of Delta airlines top priority issues is the lack of product differentiation features. The emergence of the millennials with an urge of overspending poses an opportunity for the airline as a formative aspect of customizing the packages.
Delta airlines management teams responsibility is to establish initiatives that intensify performance across the distinctive aspect of technological advancement. One of the top approaches that render optimal competence for the airline is incorporating an artificial intelligence system in analyzing and identifying customers needs based on the provided details and consumption patterns (Coursaris & Van Osch, 2020). The aspect attributes to the prediction and customization of the products and services to suit the expectation quotient among the clients. Therefore, the main issue lies in the incapacitation to significantly exploit the technology resources to elevate the marketing and strategic management aspect of Delta airlines.
In a different spectrum, the airline company faces the significant issue of the travel ban to particular countries as a low priority factor. Since the advent of the COVID-19 pandemic, Deltas flight fleet decreased mainly because of the ban on flights and movements from one region to another (Coursaris & Van Osch, 2020). The initiative negatively affected the trickle-down of the financial resources. As a result, the managements mandate is to incorporate measures that elevate the diversification of market and product differentiating features to attract clients based on the stringent measures imposed during the COVID-19 pandemic. The aspect attributes to the retention of high profitability scale against the socio-economic slowdown internationally.
Recommendations
Over the decades, one of the prominent factors that fostered the intensification of business activities encompassed technological advancement. The emergence of computers and the internet is a concept that led to the increased flow and accessibility of information among individuals internationally. As a result, the evolution cultivated the development of a global village with dynamic niche marketing. The niche market posed the paradigm shift in the marketplace regarding consumer behavior mainly because of the empowerment tool of product knowledge (Singh, 2017). A significant percentage of individuals focus on the attainment of information about commodities through online portals. Therefore, a global e-marketing strategy is a crucial solution for organizations in boosting competence and optimization of customer service experience, satisfaction, and loyalty.
The social media campaign is another component of the global e-marketing strategy that involves the study of the niche market and the behavioral outlines. In this case, the management of Delta focuses on the ideal aspect of product and service diversity under a dynamic spectrum. The development of the global e-marketing plan entails integrating the factors influencing consumer behavior and the impact of the niche on the competence of a companys commodities (Coursaris & Van Osch, 2020). As a result, the company attains the competitive advantage of enhancing the customer service experience by providing adequate product information, price varieties, discounts, and an efficient interactive interface.
The intensification in competition within the global business environment demands the evolution of the marketing initiatives such as strategic management. The utilization of social media campaigns is an initiative that attracts a vast clientele base while enhancing convenience mainly because of the prominent use of cloud computing for e-commerce (Coursaris & Van Osch, 2020). A significant percentage of the international market access internet and different online portals. It is a phenomenon that fostered the emergence of a niche market that focuses on online flight booking and customer query portals for the niche quotient (Singh, 2017). It is recommended that Deltas management intensifies the investment in online marketing and adoption of operational guidelines to boost the acquisition of a competitive market position.
The purchasing strategy is also a factor that the enterprise uses to gain a competitive edge in the industry. It is worth noting that the company frequently purchases a single type of aircraft. It is recommended that when purchasing, the company frequently purchases in bulk, which allows for better bargaining power with the dealers. Similarly, acquiring a uniform aircraft fleet significantly reduces the cost of training staff members because of the lesser demand for recruitment practices (Akbar & Kisilowski, 2020). Additionally, by investing in new aircraft, the company can benefit from technological advancements that promote fuel economy and vehicle safety. The strategy promotes brand reputation by increasing consumer confidence in terms of safety. As a result, the organizations purchasing strategy directly reduces operational costs while increasing consumer confidence in the brand.
It is recommended that the Delta management team focuses on improving employees performance outlier based on the incorporation of dynamic initiatives in human resources. One of the factors contributing to t
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