Delta Airline Going Digital

Since the Delta changed to a digital airline, the performance of the company has improved to a higher and attractive level. A combination of the company’s technology, ideology and operation define the e-business of Delta. The change in business process has resulted to new wealth through new ventures and entrepreneurial start up. This was as a result of utilizing the features of the Internet to quickly respond to customer queries, thus providing better customer service and greater customer satisfaction (Cento, 2009). Before Delta advanced in technology, the company was experiencing high price fuel and low demand for travelling services. E-business model have significantly cut the operation costs and back on service diversification to reach all market demands (Cento, 2009).

From the Delta’s annual report, setting up an e-business is more economical and effective than maintaining a large office. Delta no longer spends much on promotional materials and installation of expensive physical resources to be used for customer service. Development in a digital company reduced the operation costs since the workers electronically shared through the internet hence preventing multiple printing. (Cento, 2009)  Although advancing technologically was costly, Delta enjoyed long term benefits resulting from the implementation of technology. It was able to expand its market to other states which did not enjoy the company’s services before. The technology led to diversification of Delta’s services hence expanding to both domestic and international markets.

Since the Delta advanced technologically, revenues and number of customers have gradually increased. The company reported over 60% revenue increase 10 years after developing its e-business model. Economists argue that consistent increase in operating profits has made Delta the best airline company in the States (Cento, 2009). This was brought by the increase in employees from 250 to over 75000 due to increase in customers by over 120%. Despite competition from other airlines like southwest and American airlines, Delta was able to strengthen its competitive advantage. The success of e-business depended on the value added hence maximization of available resources.

 (Cento, A. (2009). The airline industry challenges in the 21st century. Heidelberg).