Delta CEO Bastian wondered how he should respond to increasedglobal competition, including
the threat posed by rapidly expanding Persian Gulf carriers and theEuropean ultra-low cost competi-tors, all of which are makinginroads into Delta’s profit sanctuary on international routes.Meanwhile, the domestic U.S. airline industry is getting moreconsolidated, and thus making the few remaining competitors morepotent. In addition, the U.S. also has its share of ultra-low costcompetitors such as Spirit Airlines and Allegiant Air. Will they beexpanding and making inroads to Delta’s routes? At the same time,customer service has become much more important given the recenthigh-profile inci-dents. Customers and regulators are becomingincreasing vocal in demanding better customer service.
He could also see changing demographic trends would drive changes,and Delta’s strategy needed
to adapt to meet the needs of new consumer groups. Importantly,looming demographic shifts repre-sented an opportunity to offer newproducts and services.
Sipping his Diet Coke, and looking at the A-380 flight by KoreanAir taking off, Ed Bastian won-dered, what does Delta need toaddress all these threats, and what would Delta need to do tocreate a competitive advantage? He needed to outline proposals topresent to the next Board of Directors meet-ing concerning newproducts and services Delta should offer. How could Delta be betterpositioned to meet emerging challenges and opportunities, bothdomestically and globally? Ed Bastian started to type on hislaptop...
Delta CEO Bastian wondered how he should respond to increasedglobal competition, including
the threat posed by rapidly expanding Persian Gulf carriers and theEuropean ultra-low cost competi-tors, all of which are makinginroads into Delta’s profit sanctuary on international routes.Meanwhile, the domestic U.S. airline industry is getting moreconsolidated, and thus making the few remaining competitors morepotent. In addition, the U.S. also has its share of ultra-low costcompetitors such as Spirit Airlines and Allegiant Air. Will they beexpanding and making inroads to Delta’s routes? At the same time,customer service has become much more important given the recenthigh-profile inci-dents. Customers and regulators are becomingincreasing vocal in demanding better customer service.
He could also see changing demographic trends would drive changes,and Delta’s strategy needed
to adapt to meet the needs of new consumer groups. Importantly,looming demographic shifts repre-sented an opportunity to offer newproducts and services.
Sipping his Diet Coke, and looking at the A-380 flight by KoreanAir taking off, Ed Bastian won-dered, what does Delta need toaddress all these threats, and what would Delta need to do tocreate a competitive advantage? He needed to outline proposals topresent to the next Board of Directors meet-ing concerning newproducts and services Delta should offer. How could Delta be betterpositioned to meet emerging challenges and opportunities, bothdomestically and globally? Ed Bastian started to type on hislaptop...
Asinfored person about the difficulties Delta is facing in themarlet, what would be your recomendation to the CEO of delta, toimprove, delta’s maket share, profitability and its competativeadvantage? ( only basd on information given on first post)
