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DELTA
Information Systems Management Industry Analysis Case Study, research airline company (Delta Airlines) give an overview company, identify industry a part, complete a Five Forces Industry Analysis.
Delta Airlines
Brief company background
Delta Airlines became one of the world's largest air carriers when it merged with Northwest Airlines in 2008. Based at the Hartsfield-Jackson Atlanta International Airport, Delta offers extensive domestic and international service (Delta Airlines, 2013, CAPA). It is also one of the founding members of the Sky Team. The Sky Team is an airline alliance with Aeromexico, Air France, and Korean Air (Sky Team, 2013, CAPA).
Industry overview
Delta Airlines is a member of the international airlines industry. The industry has suffered a number of recent difficulties, including increased security concerns post- 9/11; the rise of electronic communication which reduces the need for business travel; online ticket shopping that enables consumers to find lower-cost...
Rising fuel costs can inhibit an airline's ability to slash fares to remain competitive and input costs can be difficult to predict. Demand is volatile because of the seasonal nature of vacation travel, as well as consumer price sensitivity. Consumer discontent is rising because of cutbacks in meals and other amenities.
Porter's five forces
Threat of new entrants (Low): Given Delta's size and scope as an organization, it is unlikely that a new entrant could easily rival its power. Flying frequent international flights takes a major capital investment of human and logistical resources. However, it is possible on a small-scale, domestic level for smaller carriers to enter the market. But these carriers cannot offer as many flights to as many passengers and also lack the ability to provide incentives like frequent flier miles
Power of suppliers (high): Boeing and Airbus supply most major commercial airplanes to the…
References
Delta Airlines. (2013). CAPA. Retrieved:
http://centreforaviation.com/profiles/airlines/delta-air-lines-dl
The industry handbook: The airline industry. (2013). Investopedia. Retrieved:
http://www.investopedia.com/features/industryhandbook/airline.asp
http://centreforaviation.com/profiles/alliances/skyteam
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