Delta Information Systems Management Industry Analysis Case Case Study

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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 fares; and also a number of labor disputes that have tarnished the industry's reputation.

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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….....

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"Delta Information Systems Management Industry Analysis Case" (2013, April 26) Retrieved May 18, 2024, from
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