Thursday 23 May 2013

History of Delta Airline

Delta airlines transformed as a digital with a lot of aplomb in the year 2000. The CEO at that time pushed for an epic development of e-business in the company’s operations. Delta entered in to e-business through Priceline business dot.com which was dealing with the sale of extra seats to consumers who could not afford the fixed price. Although Delta airlines had developed infrastructure to foresee its operations as high-tech, implementation of the strategy took more time than expected. (Jones, 1999) argue that during this time, technology in the United States was growing steadily and the airline industry was engaging in technological competition. Delta had experience difficulty in operating its fast growing airline transaction. Its transformation to a digital company was to establish a more favorable working environment to its employees leading to customer collaboration.
Delta management team realized that other companies like Southwest were enjoying the different opportunities that lead to low cost of operation. This hence led to the development of technology where the company can sell tickets online, sell excess stock through Priceline and establish MYOBTravel.com for SMEs. The Priceline initiative acted as a distribution channel through the provision of wireless. Following this deal, Delta pursued e-business model that the management believed that it will improve the competitive strength of the company. The initiative was to increase revenue, strengthen its competitive advantage and expand its market to reach all passengers. Before the development of e-business, Delta did not just prepared for technological challenges but also how to achieve the best out of that technology. Its business initiative focused on productivity of employee through the use of internet. Employee at the airport could easily communicate with those in the plane hence maintaining continuous production. The management also argued that the internet can enhance an excellent employee-customer relationship hence increasing loyalty in the company’s customers.
Delta airline faced competitive challenges from its rivals especially on the online space. It was becoming easier for passengers to use other airlines who had advanced in technology. Although Delta had the most customers in United States in 1990s, the fact that other airlines started providing cheap and accessible tickets was a stiff challenge (Jones, 1998). Delta had to step up technologically by introducing its customers to online booking of tickets. The information technology department also developed a website to be used by customers to forward complain to the company. The company could use this information to enhance customer satisfaction.

(Jones, G. (1998). Delta airlines. [S.l.], Plymouth Prpess, Lim)

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