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 concept. 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 an 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 influences 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 gives 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 airline 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 wants 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 competitors 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 (Maintenance, Repair and overhaul) support to nearly 150 third party aircraft industries. DeltaOps was named as the international industry trailblazer in flexibility, maintaining dispatch reliability that was higher than 97 percent.