TY - GEN
T1 - Delta Air Lines
T2 - Navigating the “Red Ocean”
AU - Hoffman, Alan
N1 - based on Published sources; 16 pages
PY - 2010
Y1 - 2010
N2 - The world’s largest airline, Delta Air Lines, has used mergers and acquisitions successfully to solidify its strong position as a leader in the airline industry. It has gone through five M&As since 1953, including the most recent acquisition of Northwest Airlines, which turned Delta into an airline with major operations in every region of the world. On the other hand, M&As also have taken a toll on Delta’s financial position by contributing to its high long-term debt. Delta seeks to expand current market share but is cautiously exploring opportunities for entering new markets, routes, and partnerships. The airline industry is known for being extremely competitive with significant market share volatility, having strong competition on price, and low brand loyalty. It is crucial for Delta to differentiate itself from its competitors while maintaining its achievements. What strengths can Delta draw on to create a new space for itself in this crowded and stagnant market?
AB - The world’s largest airline, Delta Air Lines, has used mergers and acquisitions successfully to solidify its strong position as a leader in the airline industry. It has gone through five M&As since 1953, including the most recent acquisition of Northwest Airlines, which turned Delta into an airline with major operations in every region of the world. On the other hand, M&As also have taken a toll on Delta’s financial position by contributing to its high long-term debt. Delta seeks to expand current market share but is cautiously exploring opportunities for entering new markets, routes, and partnerships. The airline industry is known for being extremely competitive with significant market share volatility, having strong competition on price, and low brand loyalty. It is crucial for Delta to differentiate itself from its competitors while maintaining its achievements. What strengths can Delta draw on to create a new space for itself in this crowded and stagnant market?
M3 - Teaching case
T3 - RSM Case Development Centre
ER -