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Delta Airlines is the top prodigious air corporation in America, headquarter in Atlanta, Georgia. Delta has a gargantuan center that resides at Hartsfield-Jackson Atlanta International Airport. Delta Airline minister to over 180 million clients every year. Delta airline is named top 50 admired corporations for its seventh consecutive year. Delta airlines operates over 5000 flights that includes domestic and international that travel up to 59 countries across the U.S. Within this research paper I will discuss the social media functional operations, operation support systems and MIS support and other attributes that Delta Airlines utilize to become the top 50th successful business in the country.
Delta has six different functional operations: (sales, operations management, marketing, human resources, accounting and finance). Delta has made the purchasing of ticket much more relaxed than other airlines. First, with the use of the delta.com website and webpage which enhances the customer experience by expressing numerous amounts of information including search engines on the website to better equip customer satisfaction on ticket, seat products and company information. Secondly, the use of the delta airline phone app where you can purchase airfare tickets, switch flights and even seats has made even more convenient just from the company of your own home or airport. Delta has made it its mission to tend to its customers’ needs when it comes to cheaper flights, comfort and amenities by the idea of three concepts. The first would be Consistency, Delta thrives itself on relaying its data and information of aviation or flying to their customers is consistent as possible versus third party airlines sites such as tripadvisor.com and cheaptickets.com. No matter where a customer shop via website or walking into an actual store purchasing the same product the company and manufacturer wants to make sure the shopping experience is consistent which delta is in agreeance with.
The second concept is transparency which minimizes the risk of turbulence such as purchasing a ticket with a connecting flight because it may be cheaper. When it comes to travel delta airlines wants to arrange their customers with a successful experience and most flight do not take that into consideration. The final sales concept for Delta is choice which is expressing and informing customers of disclosures, airline history and many pleasantries such as entertainment, legroom, food and beverage options and seat accessibility. Delta Airlines is an advocate in making sure that their customers know exactly what they are purchasing. The operations management of Delta Airlines is very intricate and designed to promote safety, great place of business and wonderful work ethic and create value through excellent customer service, great operations, a superb brand and employee relations. Delta uses an operating model or business model which is used to accomplish a goal of transportation of clientele between cites which includes the production of goods and service of flights and reservation operations to its loyalty reward programs. Delta’s marketing and advertising use many forms of media outlets to satisfy the customer such Instagram, Twitter, Snapchat, and Facebook to convey their message of comfort and a wonderful travel experience.
The latest marketing and advertising strategy was a voice over commercial from our very own How to Get Away with Murder Star Viola Davis who uses the tagline “Good things Come to those who go” to express how Delta is the best travel option. The commercial depicted many scenes featuring runways around the world. Delta Airlines utilizes their community, environment, people and local business to enhance the customer satisfaction and build revenue. Like many corporate companies the hiring process is typically the same. Going to the corporate office website and choosing the career options at the bottom of the home page, and applying to the position of your choice and having interviews with human resources. Delta airlines have employed about 80,000 employees for over 800 aircrafts. They have recently certified as a great place to work for the second time in 2017. The certification was based off ratings given to customers by employees. The certification gives validation that of striving to live up to their standards and core values. Delta’s chief Human resource officer Joanne Smith quoted “We know that listening to and caring for each other will help serve our customers even better and will continue to make Delta a great place to work.”
Delta Airlines collect data using various methods such as customer satisfaction surveys, focus groups and even testimonials where the employees and the airline is reviewed. Using these evaluations could be used to improve the company’s delegation. Also, the data collected could be used to look at what needs to be changed and modified, as well as what the competition have that Delta can take and make better. When clients perform and participates in data collection techniques delta airlines offer loyalty rewards such as the SkyMiles program where individuals can travel with miles, offer upgrades, shop with miles and buy gifts, transfer and donate miles as well.
Porters Five Forces is a management technique to analyze the profits of an industry. Delta Airlines uses the five forces model to realize the competitive forces that influence the profit and develop potential strategies to make Delta thrive. The five forces of the model are Threats to New Entrants, Bargaining Power of supplier, Bargaining Power of Buyers, Threat from Substitute Products and Rivalry among the existing competitors.
Threats of new entrants within airlines potentially bring in new ways of building, lower cost for ticket sales and reducing cost. Delta airlines would need to take active measures in building barricades to keep the structure of the company secure. There are many ways that Delta tackle Threats of new entrants. The company improves new products and its services. New products help bring in revenue from new customers and give the opportunity for old patrons to keep their loyalty with Delta. Another tackle to the threat of new entrant would be the expanding economies so the fixed cost can be lowered.
Bargaining Power of Supplies is a problem since most airlines purchase their supplies from frequent contractors. The higher bargaining of supplies can have a huge impact and lowers the profit margins of many airlines including Delta Airlines. Suppliers in prestigious positions can deflate the margins. Delta Airlines can improve the Bargaining of Power if the supplies by building effective supply chain with several suppliers. As well as creating a business connection with third party manufactures whose business and products depend on that company only.
Buyers want to purchase the best offers available by paying smaller amounts for them. The higher the bargaining power for the customers and the higher the ability to purchase discounts can put strain on delta airline which means a smaller customer support. Creating and building a large customer base can reduce the bargaining power and streamline sales and production. Another way to handle the bargaining of buyer power would be the creation of new ideas of merchandising and innovating established goods that Delta Airlines have set in place.
A product that is substituted is offered the same benefits to that specific corporation from another company. The threat of substituted products or services can be increasingly high if benefit or specific offer values are unique than other industries. The way Delta airlines can target this issue by the valuing and understanding what individuals need out of delta instead of what they are buying. As well as being more service oriented within their consumer margins.
Lastly, we have Rivalry among existing competitors. If this rivalry in the airline industry is increased it will decline prices and profit. Delta Airlines is a part of the largest competitive market in the airline industry. The more the competition arise in the company the lower the profitability. Delta Airlines can collaborate with other franchise or entrants for the enlarging of the market size than smaller markets.
The operational support system for Delta Airlines is the center for how things are operating for the employees and the customers. From the balancing of schedules and operational limitations while completing top notch performance. Delta TechOps is the maintenance and repair division of Delta Airlines. Delta TechOps is a full-time service that operates on more than 700 airplane fleet. The TechOps also provides MRO support to nearly 150 third party aircraft industries. DeltaOps was named as the international industry trailblazer in flexibility, maintaining dispatch dependability that was higher than 97 percent.
Like most companies everyone has a business model. A business model is an operation of business that identifies the revenue, customer base, products and finance. Delta Airlines business model is broken down into nine categories. First is the customer segment where delta airline serves a wide variety of customers from general passengers to groups and families. The second step on the business model is value proposition, where Delta provides top notch service such as the on-board service and customer care, The frequent flyer SkyMiles or reward and discount packages, The broad grid of domestic and worldwide destinations. The customer facing operations through MIS would be under the channels sector of the business model. Delta Airlines utilize their website where information of the company’s service, rules and flight plans or schedules. The Delta website also is the home for the booking gateway where customers can purchase tickets and book flights as well as lodging. Many customers are using the Delta mobile app which is very convenient as well as increasing sales and profit. Delta airlines do not interact with social media platforms such as Instagram, twitter and Facebook to announce ticket sales like southwest airlines, Delta does not sale or marketing cheap ticket sales or third-party site. They do use social media to showcase their customer experience with Delta Airlines. Next, we have customer relationship where customers can do a self-service when making flight reservations. Delta made this process so no direct interaction from the employees of the company will be made. However, if need be Delta do provide a customer care support line if clients are having a difficulty or have questions about anything that is going on with their flight, handling inquiries as well as cancellations of payments. Key activities and Key partners of the business coincide with one another. With the key activities Delta provides operations, customer service, safety and security and aircraft maintenance just to name a few. Delta Airlines have key partners to ensure that they run smoothly like aircraft manufactures, fuel providers and travel agencies. Finally, on Delta Airlines Business model is cost structure and Revenue Streams. Delta receives its income from air travel services starting with the passenger and the air fare and the secondary services to the cargo where revenue comes from the freight and shipping services on the domestic and international travel and last on the chain of revenue streams would be the maintenance operation and repair services. Cost structure occurs from the cost in regard to the aircraft such as jet fuel and the substructure and the ground support facility.
Delta is a huge participant when it comes to community involvement and outreach. According to “Kids Design The Delta Air Lines And KaBOOM! Playground” children from the Angels Reach Foundation took the opportunity to design their own playground, Where Delta airlines and their partnership with KaBoom! Would make their creation come to fruition by April of 2018. Delta wanted the playground to be a wonderful opportunity to give back to the public and community of the city of Miami. Also, Delta and Kaboom! Wanted the children of the foundation to feel love and appreciated and create an environment where their potential can shine.
Delta Airlines may be the top airline in the world however, there are three airlines that are closely following behind them in close proximity one being united continental holdings with a market capacity of $19.7 billion. United founded the Star Alliance that has 28 airlines with 19,000 ventures. Star Alliance competes with SkyTeam which is associated with Delta Airlines. Southwest Airlines is the second runner up behind United Continental Holding with a market capacity of $30.7 billion. Southwest directs its service to middle-class customers instead of first and business class flier. Southwest Airlines is dependent on the domestic market while delta operates their services domestically, but more so internationally. Lastly, American Airlines is the third competitor behind Delta Airlines. American Airlines has a market capacity of $18.55 billion. American centers its attention to the middle class and business class itinerants, the same as Delta. American airlines have a great loyalty rewards program and excellent amenities. Delta airlines business model has not changed to increase competitive advantages. I believe that Delta’s business model is better than it can ever be for any airline corporation. Delta’s loyalty program and customer service is why Delta airlines is at the top of the market.
Deltas airlines Global presence has expanded to overseas airlines to increase the global outreach. Airlines such as Virgin Atlantic Airway, Shanghai China Eastern airlines, Aero México and Brazil’s has made its way into Delta’s plan to target more international travel for customers. Delta Airlines is treating their market towards Latin America as well as the Asian flight margins. Delta capitalized in Latin America travel which is made up of ten percent of seat mileage. Management Information systems is a hardware that used to collect, store and process information. Delta Airlines uses SQL (structured query language) database and Oracle database. SQL is the communication of a database that retrieves, updates and copies data from a server. Delta Uses structures query language to update customer ticket sales from the database, look up employee records and company revenue as well. Oracle is a relational database that is used by SQL. Oracle uses grid computing to reach the maximum quantity of servers from multiple locations. Delta collaboration with Oracle database has made its success rate soar, from quick response time from mobile apps and online sites to easily access large number of stored files. Delta Airlines well informed Business model, their answers to resolve the porter’s five forces and their relational database has presented great ideals and strives in making Delta a force to be wrecking with in the airline business.
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