Product Development

Delta’s product management is well defined in its annual reports. Most airline companies in United States demonstrate strategies in their operations which is directed to support their target costing process. Delta airlines have an effective management structure which respond to customer demands through a streamlined product development process. (Meryer, 1981). This was aimed at strengthening the competitive advantage of the Airline. Delta had introduced quality management techniques through their web. Online team with special knowledge on quality improvement techniques was established to ensure product development hence satisfying passenger needs.  This team is aimed at developing new technique of production to secure the markets. (Oster, 1981).

Delta airline have done international alliance with other airlines and airline related industries like hotels to ensure effective product development. In 2012, Delta announced alliance with Virgin Atlantic. Delta acquired 49% of Virgin’s shareholding. This helped Delta to utilise the excess production capacity and maximise its available resources. The alliance led to easy access to cost friendly travelling tickets to passengers. Since Delta advanced to a digital company, it has also formed alliances with international hotels. This strategy was aimed at providing meals and beverages within the airports and also inside the planes. Passengers travelling in odd hours can also access cheap accommodation (Meyer, 1981).

Delta airline established a quality management team to ensure quality services to the passengers. The team was aimed at product development as to the preference of customers. To achieve this, Delta introduced training programs for both executive and general employees to enhance new consumer favouring techniques in service provision (Meryer, 1989). The company also used performance appraisal system to ensure employees deliver to their maximum capacity. Although the Delta linked employee performance appraisal with employee reward program, the employees were motivated more on satisfying the customers’ preferences. Economists argue that, the product development strategy has been the best ever in the airline industry. The sustainability of Delta was as a result of regular development of new products and maximisation of its e-business model. Many customers need to be satisfied by new products and services.

 (Meyer, J. R., & Oster, C. V. (1981). Airline deregulation: the early experience. Boston)