FOF #1: Differentiation
In order to compete in a pricesensitive industry, Delta Air Lines needs to focus on
differentiating itself from competitors. By doing this, Delta is creating sustainability through
customer retention and loyalty. To set itself apart from competitors like United Airlines and
American Airlines, Delta needs to implement a program to improve customer service.
Because of Delta’s poor service reputation, I believe that the company needs to primarily
concentrate on offering superior customer service as a way to gain a competitive advantage.
After Delta’s merger with Northwest, customer complaints increased significantly. In 2009 …show more content…
Delta’s top management needs to determine the best directional strategy to ensure good
future health of the company. The three directions in which to consider are:
continue its current activities and make no changes
retrench by reducing the number of brands
focus on expansion though continued acquisitions
If Delta continues its current activities and makes no changes, then it will have chosen a
stability strategy. As this strategy is most popular with corporations in a stable environment and
small business owners who are happy with the success and size of the company, I do not see it as
a reasonable solution for Delta Air Lines. Additionally, stability strategies tend to only be
beneficial in the short run, so choosing to continue making no changes is not a temporary
solution for Delta.
On the other hand, a retrenchment strategy attempts to eliminate the weaknesses in a
company in order to improve overall performance. Delta has implemented these strategies in the
past. For example, the company chose to divest its own unsuccessful subsidiaries: Delta Shuttle,
Delta Express, and Song. The airline also sold off two regional subsidiaries of Northwest
Airlines after the merger. More consequentially