Start this assignment by reading the case Delta Airlines.
Carefully read the que
Start this assignment by reading the case Delta Airlines.
Carefully read the questions listed below, in order to understand exactly what you are being asked to do. Then apply the appropriate concepts and techniques to answer the questions below.
Remember that the purpose of a case assignment is to help your instructor assess whether you have understood and can apply the concepts and techniques. Make sure that your answers are based on the application of appropriate concepts and techniques rather than on a gut-feeling that you might have. Your instructor expects you to justify your answers through the use of appropriate concepts and techniques. This indicates that you are becoming proficient in the skills covered in this course.
Once you have read the case and the instructions above, answer the following questions:
Do a Porter’s 5 force analysis of the airline industry and explain why most airline firms have not been able to achieve profitability.
Why did the major full-service airlines like Delta and Continental not do well but low-cost carriers like Southwest and JetBlue did well in the same industry environment? (Hint – How did differences between the strategies and value chain activities of full-service airlines and low-cost airlines contribute to differences in competitive advantage and performance?).
Why have full-service airlines not been able to imitate the success of their low-cost competitors? Even when airlines like Delta launched low-cost subsidiaries like Delta Express, such strategies have failed. Why?
Mark Balloun’s team at Delta is considering multiple strategic options. One of the options is the launch of a new low-cost subsidiary. Do you think this is a good strategic option for Delta? If yes, explain why. If not, explain why not.
Leave a Reply