- 1 Delta Airlines Company Background
- 2 Information about the background
- 3 SWOT Analysis Of Delta
- 4 Strengths In The SWOT Analysis of Delta Airlines
- 5 Weaknesses In The SWOT Analysis of Delta Airlines
- 6 Opportunities In The SWOT Analysis of Delta Airlines
- 7 Threats In The SWOT Analysis of Delta Airlines
- 8 Limitations of SWOT Analysis for Delta Air Lines
- 9 Weighted SWOT Analysis of Delta Air Lines
- 10 Delta Airlines SWOT Analysis: Summary And Conclusion
Delta Airlines is a name that everyone has heard of and been familiar with for years. It is a long-standing presence in the field of airline travel and is among the most important airlines operating in the United States today.
It has a huge network of six continents and operates within fifty-two countries and operates over 5000 flights every day.
It began operations in 1929 and is currently operating nine hubs. Today, they employ over 74,000 people worldwide.
But, the times weren’t always easy for Delta. Delta has seen its bumps and bruises throughout the years too.
In 2005, the company hit an all-time low, which led it to declare bankruptcy. It was eventually able to come back within just two years and was able to regain its spot at the New York Stock Exchange; quite impressive to put it in a positive light.
Over the many years, Delta Airlines has had an interesting journey. The present situation it has built for itself, despite its challenges seems to be quite amazing.
For a complete overview of where the company is, we conduct a Delta Airlines SWOT Analysis. A report like this could be extremely useful for providing an in-depth review of a company’s status.
Delta Airlines Company Background
|Company Name||Delta Airlines|
|Industry||US Aviation Industry|
|Net Revenue 2018||$44.44 billion|
|Net Income 2018||$3.94 billion|
|Leading Competitors||Southwest, American, United, JetBlue, Skywest, Alaska, Republic, Spirit, Frontier.|
Information about the background
Delta airlines were founded on an incredibly humble social and economic background, characterized by the brand name “Huff Daland Dusters” which was an organization for crop dusting within Georgia Macon.
The company was later named Delta Airlines following the pioneer activities of passenger transportation in 1934 (Yamanouchi 2012).
In the late 20th century, the business had developed more financial capabilities and in 1972, it merged with Northeast airlines. From there, it was able to control the transatlantic route of Pan Am (Luo, 2014).
Furthermore, significant changes in the airline’s operations took place in 2008 when Delta Airlines merged 2008 with Northwest Airlines.
The airline is believed to operate on across six continents and serves 312 communities of different types including 319 cities and 648 cities across the globe in concert with other Skyteam members of the alliance (Pearson and Merkert, 2014).
In addition, Delta has a fleet of up to 800 aircraft worth, with the skilled operations of its 80 thousand skilled and reliable personnel.
SWOT analysis is a crucial tool for analyzing the strengths and weaknesses of Delta airlines.
SWOT analysis is an important instrument for identifying opportunities and the weaknesses in Delta airlines, in order to mitigate the strengths of the airline and avoid the imminent risks (Newton, Paul; Bristol 2013).
The SWOT analysis device is a formula that will ensure the business decisions of Delta to establish an exclusive corporate environment within the aviation industry.
The tool will analyze and pinpoint the ways that the airline can take advantage of its strengths potential, capabilities, and opportunities.
In addition, the tool will aid in analyzing the potential competition in the market, to ensure that the airline is aware of how best to maximize its competitive advantages and overcome challenges.
The opportunities and threats often relate to the external context, the strengths, and strengths of an entity (in this case, Delta airline) are a part of the internal surroundings of the company like understanding the inputs from the SWOT tool in the ideal place to make strategic planning within the company.
The tourism industry and the aviation industry are inextricably linked but are also directly connected to the hospitality sector in the global market. Thus, Delta and tourism are allies in the corporate environment.
The components of hospitality and tourism include travel, lodging planning, logistics, and transportation along with other disciplines.
Tourism is heavily dependent upon the accessibility of transportation. The multi-million-dollar industry is heavily dependent upon Delta airlines, which is one of the main stewards of travel.
Thus, the various departments within the airline like the management, marketing personnel, human resources, bartenders, housekeepers, porters, and the general staff on aircraft are vital.
SWOT Analysis Of Delta
SWOT analysis is an instrument that helps evaluate a company’s strengths or weaknesses, potential opportunities, and threats.
The analysis provides us with an extremely precise picture of how the organization operates and handles external and internal factors.
Analysis of SWOT for Delta Air Lines, Inc. Delta is a hereditary airline that is owned by an American airline.
Strengths In The SWOT Analysis of Delta Airlines
Strengths are the things that each company excels at within its range of operations that can give its customers an edge over its rivals. These are the strength that Delta Airlines has: Delta Airlines :
❤️ revenue premium: Delta Airlines owes its continuing growth to its revenue rate which is in the range of 107 percent. This is because Delta’s revenue per seat mile was higher than the industry average, which indicates that Delta was the most popular option for many of its customers.
❤️ Hub for airlines: Delta Airlines operates from the world’s most frequented airport hub Atlanta which is also the largest single hub for airlines around the globe. At present, the airport offers 970 departures and around 210 destinations, of which Delta operates in 59 countries.
❤️ High level of customer engagement The degree of customer engagement at Delta Airlines is high and this allows them to earn returning customers from their current customers. A few frequent flier plans of Delta Airlines provide significant discounts to foreigners and also automatic upgrades to higher-class. The airline also guarantees that they’re constantly in contact with their clients.
❤️ The focus is on business travelers: The prime target segment for Delta Airlines is business travelers. The reason is the huge margins and the low price sensitivity for these customers. They have had a huge success in attracting business travelers with customized services. The airline trains its employees on customer interaction and is focused on making the flight experience enjoyable and safe.
❤️ Operational Strategies The main components in the operational plan include the purchase of used aircraft and cutting down on the effects of unionization vertical integration and vertical integration. The airline also has its own refineries which aid in reducing expenses and improving operational effectiveness. This change has helped them cut down on their fuel expenses by .1cents per gallon.
❤️ multiple hubs While Delta Airlines primarily operate from Atlanta but they also have centers within Seattle in addition to New York. Following the acquisition of a 49 percent stake in Virgin the airline is in a position to offer additional flights from London and increase the use of the Heathrow terminal. It also purchased shares within Northwest Airlines which opened up new opportunities for expansion in China to the company.
Weaknesses In The SWOT Analysis of Delta Airlines
They are utilized to indicate areas where the company, as well as the image, requires improvement. One of the major shortcomings that are present in Delta Airlines is:
❤️ Low margins: Delta Airlines just like other companies in the industry have suffered from low margins. The unit revenue was cut significantly, and this in conjunction with increasing fuel prices reduced margins by a significant amount.
❤️ Not necessary investment: Delta Airlines has been affected by a variety of issues recently, and the company lost its image across the USA. To avoid further outages, the airline has put money into various backup systems, including a 200 million dollar data center that is affecting the profits of the business.
❤️ Brand changing: The growth of low-cost airlines has enticed businesses away from Delta Airlines and people have switched brands from high-cost airline companies to less expensive ones. This has led to a decline in the business sector.
Opportunities In The SWOT Analysis of Delta Airlines
Opportunities refer to the opportunities in the world that surround the business, and on which it could profit to boost its profits. Opportunities include:
❤️ The growing need for business-related travel The quantity, as well as the frequency of travel for business around the globe, have increased in the last couple of decades. It is increasing more in Asia than in other regions of the world. This implies that there is more opportunity to do business in Asia for Delta Airlines.
Threats In The SWOT Analysis of Delta Airlines
The threats are the elements in the world that could affect the expansion of the company. A few of them are:
❤️ Competition: The airline faces lots of competition from other brands like Lufthansa, Air France, Air India, Singapore Airlines, etc.
❤️ Cheap-cost airlines The increasing effect of these low-cost carriers have shifted many businesses away from premium airlines such as Cathay Pacific and Delta Airlines. However, these airlines that are focusing on high quality as the basis of their USP might not be able to compete on the price aspect, but they will not be able to maintain profits.
Limitations of SWOT Analysis for Delta Air Lines
While it is true that the SWOT analysis is used widely to plan strategic strategies, However, the analysis has its fair share of drawbacks.
- Certain abilities or aspects of an organization can be both strengths and weaknesses at the same time. This is among the most important limitations that SWOT analysis has. Changes in environmental regulations can be an opportunity and a threat to the company. However, however it could also be an opportunity in the sense that it allows the company to compete on the same level or even gain an advantage over competitors if it can develop its products more quickly than its competitors.
- SWOT doesn’t provide a way to gain competitive advantages It is not a strategy to gain competitive advantage, therefore it should not be a complete solution.
- The matrix serves as an idea to begin an analysis of how the proposed strategies might be implemented. It also provided an evaluation window, but not an implementation plan based upon the strategic competitiveness. Delta Air Lines
- It is a static evaluation that analyzes the current conditions with only a few potential modifications. As the environment, circumstances, as well as threats, and strategies, evolve, the dynamics of a competitive setting cannot be analyzed in the form of a single matrix.
- SWOT analysis can cause a company to focus too much on one external or internal element in formulating strategies. There are interrelations between the important external and internal elements that SWOT doesn’t reveal, which could be crucial in determining strategies.
Weighted SWOT Analysis of Delta Air Lines
Due to the previously identified shortcomings of the SWOT analysis/ matrix, the management of the corporate determined to give an appropriate amount of weightage to every internal strength and weakness of the business.
Companies also evaluate the probability of events happening in the near future and what the effect can be on the performance of the company.
This is referred to as weighted SWOT analysis. It’s better than a simple SWOT analysis since With a weighted SWOT analysis Delta Air Lines managers can concentrate on the most crucial elements and ignore the less crucial ones.
This also helps solve the problem of a long list that causes organizations to make a lengthy list but not addressing any is considered to be crucial.
Delta Airlines SWOT Analysis: Summary And Conclusion
After looking at Delta Airlines from a SWOT standpoint, it is clear that they possess a number of advantages that account for its strength over other airlines.
The few threats and weaknesses they face currently also have tangible solutions that if their company begins to work on them the issue, they’ll be able to tackle quickly and easily.
Overall, Delta was and continues to be a major name in the world of airlines and it doesn’t appear to ever lose its position very soon.
A SWOT analysis is a method that can be used to assess the strengths and weaknesses, opportunities, and threats facing a business.
It is extremely informative and can help determine the position of a company within a specific time period.
This analysis provides us with many specific insights into the functions of a business and addresses external and internal aspects.
Check out the sample of a SWOT Analysis as well as some examples of other businesses that have a SWOT analysis.
It will help you figure out the best way to evaluate your own business using this technique.
We also provide a comprehensive guide to conducting the SWOT Analysis to serve this reason.
It is also possible to summarize your SWOT data in the form of a table that will give an overview of the information.
There is a thorough article about creating a SWOT table for those who are searching for this information.
You could also summarise all your SWOT results in the format of a table that will give an easy overview of the information.
There is a thorough guide on creating a SWOT table should you be seeking this information.