Strategic Management Research Paper Example | Topics and Well Written Essays - 2000 words

Strategic Management - Research Paper ExampleStable political situation in America and economic relations with Europe supported development and growth of international operations. Government policies and physical exertion law have a positive impact on companys performance, its market position and organizational structure. stinting factors included stable economic development of the region, low interest grade and low inflation rates regional and international cooperation, high record of airline industry growth. Social/demographic included life style changes (involve aging of population), and increasing number of travelers. Technological forces generate problem-solving inventions. Airline target was on average as dependent on reliable information technology as any other businesses. Improvements in freightage ships and handling equipment, increasing containerization, applications of IT to scheduling and controlling shipments and to customs procedures, virgin plains, and a host of o ther proficient advances and innovations have reduced the costs of work and information. On the other hand, airline technology cost is wholeness of the highest among other industries (Rinehart, 2005 Meyer 2003).After 9/11 Delta Airlines experienced profit loss and lost it market share. ... many another(prenominal) potential passengers prefer to use alternative transport even if it takes more time to get to the stray of destination. In this case the talk terms personnel of customers is not crucial. The ultimate aim of customers is to pay the lowest doable price to obtain the services that they require. Events of 9/11 forced many carriers including Delta Airlines invest in credentials systems and increase safety of airplanes (Meyer 2003 Delta Air Lines 2007).Porters 5 Ps (forces) include the threat of entry of new competitors the threat of substitutes the bargaining power of customers the bargaining power of suppliers the degree of rivalry between existing competitors (Porter 45). Before 9/11, new entrants to an industry raised the level of competition, thereby reducing its attractiveness. Competition did not have a large(p) impact on Delta Airlines obtaining a string market position and brand image. The presence of substitute services like trains, ships or automobiles transportation did not influence the industry and the price levels. A source of customers power was the willingness and ability to achieve backward integration. Supplier power in the airline industry was the converse of purchaser power. Suppliers had enough leverage over industry firms, and raised prices high enough to significantly influence the lucrativeness of their organizational customers (Delta Air Lines 2007 Marks 2007).After 9/11, the threat of substitutes and the bargaining power of customers were the main drivers in this industry. Many customers use alternative transport because of safety concerns. The high fuel prices do not yield Delta Airlines to decrease prices and attra ct wider target