Delta Airlines-Question 1: Determine the impact of Delta Airlines mission, vision, and primary stakeholders on its overall success. Must include the company’s specific vision/mission statements.
Question 2: Analyze the five (5) forces of competition to determine how they impact Delta Airlines.
Delta Airlines’ mission statement has significantly contributed to the success of this company. This mission statement states that Delta’s employees, customers, and community partners are a force aimed at facilitating positive change, both locally and globally. They are dedicated to bettering people’s living standards, and improving the state of the environment within which their customers live and work. According to Delta, they are a force for global good (Patankar, Sabian, Bigda-Peyton & Brown, 2012).” Apparently, the management team of the Delta Airlines acknowledges that they need their employees and other partners to succeed. Since this is included in their mission, the company has put in place strategies to merge the efforts of all these people, propelling the firm to great success. Moreover, according to the mission statement, Delta seeks to achieve global-good. One of the ways in which Delta Airlines has achieved this is by establishing relationships with Minority and Women-owned Business Enterprises (MWBE’s). This way, Delta advances it business while improving the lives of the small-business owners; a step towards the achievement of common good. These acts have seen the company enjoy great success. Moreover, Delta has earned their shareholders’ loyalty due to their unending commitment. This has also helped in making Delta, a prominent airline company.
The five forces that relate to competition include the bargaining power of both the consumers and the suppliers, as well as the threat that businesses face due to new entrants or the emergence of substitutes. The fifth of this force is rivalry among competitors (Porter, 2008). All this factors have an impact on Delta Airlines. Delta, just like the other airlines faces a threat due to the existence of alternatives. These options include developed rail transport, ocean vessels, among other modes of transport. This has made the transportation industry quite complex, and Delta has to create strategies of ensuring they maintain their relevance in the market. Additionally, with the existence of many Airlines, such as the American Airlines and Continental Airlines, Delta faces stiff competition. Therefore, Delta has to grow and adopt more innovations in order to beat this competition. This competition is influenced by factors such as events and seasons, among others. Sometimes Delta is sometimes forced to charge lower prices in order to outdo their competitors.
On the other hand, the airline market has not diminished over time. Some investors are, therefore, still eager to join the airline industry. However, additional airlines in this industry are bound to cause decreases in the prices, reducing the profit margins for Delta and other companies. This implies that the present market share for Delta Airlines is not safe. Therefore, the company has to put effort in ensuring that they remain on top in the industry, and capture as much market share as they possibly can. Moreover, the few number of supplies makes their power great. This means that Delta has to seek for an integration with one of the suppliers that promises to provide lower costs. Without this integration, suppliers can take advantage of their great power to impose high prices on Delta. On the other hand, the consumers in the airline industry have low to moderate bargaining power. This is attributable to price and other related factors. For this reason, it is common for passengers to seek for the price that suits them even before checking on things such as comfort. Delta has however had to offer lower fares in order to capture the existing market.