case Delta Airlines (A)

Start this assignment by carefully reading the case Delta Airlines (A). You will find this case in the HBP course-pack.

Carefully read the questions listed below, in order to understand exactly what you are being asked to do. Then apply the appropriate concepts and techniques covered in this course to answer the questions below.

Remember that the purpose of a case assignment is to help your instructor assess whether you have understood and can apply the concepts and techniques covered in this course. Make sure that your answers are based on the application of appropriate concepts and techniques discussed in class rather than on a gut-feeling that you might have. Your instructor expects you to justify your answers through the use of appropriate concepts and techniques. This indicates that you are becoming proficient in the skills covered in this course.

Once you have read the case and the instructions above, answer the following questions:

Do a Porter’s 5 force analysis of the airline industry, and then explain why most airline firms have not been able to achieve profitability.

Why have the major legacy airlines like Delta and Continental not done well but low-cost airlines like Southwest and JetBlue have done well in the same industry environment? (Hint – How did differences in the strategies and value chain activities of legacy airlines and low-cost airlines contribute to differences in competitive advantage and performance?).

Why have legacy airlines not been able to imitate the success of their low-cost competitors? Even when legacy airlines like Delta launched low-cost subsidiaries like Delta Express, such strategies have failed. Why?

Mark Balloun’s team at Delta is considering four strategic options. Which option would be the most effective strategy for Delta? Justify your answer.
Please submit your answers to these questions in a Word document. Answers to each question should be numbered and separated by a blank line. Your paper should be 6-8 pages long and double-spaced.

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