Delta Air Lines SWOT Analysis - WordPress.com Air Lines SWOT Analysis Created Date 12/4/2016...
Transcript of Delta Air Lines SWOT Analysis - WordPress.com Air Lines SWOT Analysis Created Date 12/4/2016...
Delta Air Lines, Inc. SWOT Analysis – Internal and External
Communications in Wake of Computer Outage
The Yellow SWOT MonstersEric Cahall, Michelle Long, Gurdeep Singh
Presentation AgendaEric – About Delta Air Lines, Inc.Gurdeep -‐ The Situation/ The Problem Eric – Financial Picture and ImpactMichelle – StrengthsGurdeep – Weaknesses
Michelle – OpportunitiesEric – ThreatsMichelle – RecommendationsGurdeep – Conclusion
About Delta Air Lines, Inc.• Origins date back to 1928• Inaugural flight on June 17, 1929 from Dallas, TX to Jackson, MS• Headquartered in Atlanta, GA • Serves nearly 180 million customers per year worldwide• Over 80,000 employees worldwide• Ranked #3 among domestic carriers
The Situation• Small fire causes power outage• Inaccurate claim that Georgia Power had an outage• Partial system switch to backup power• IT system that date back to the 1990s
The Situation Continued•Operated 2,340 of about 6,000 scheduled flights•Average of 3,600 daily twitter conversations about Delta, 43,000 conversations on Monday the day of the outage•Offered travel waiver/compensation
The Problem• IT Glitch – nationwide computer outage• Thousands of canceled and delayed flights over several days• Overall issue – Delta’s internal and external communication with employees and customers➢Notice and response time(s) – too long➢Inconsistent answers and explanations➢Lack of strategic communication and execution plan
Delta Five-‐Year Financial PictureDelta Air Lines Inc., Consolidated Income Statement
USD $ in millions
12 months ended Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Operating revenue 40,704 40,362 37,773 36,670 35,115
Cost of operating revenue -‐17,096 -‐22,967 -‐20,964 -‐21,658 -‐20,907
Gross profit 23,608 17,395 16,809 15,012 14,208
Operating income 7,802 2,206 3,400 2,175 1,975
Non-‐operating expense, net -‐645 -‐1,134 -‐873 -‐1,150 -‐1,206
Income before income taxes 7,157 1,072 2,527 1,025 769
Net income 4,526 659 10,540 1,009 854
SWOT Analysis -‐ Strengths• Leadership – Ed Bastian, Delta CEO• Financial Position • Reputation• Social Media/ Online presence
SWOT Analysis -‐ Opportunities•Improve and stabilize infrastructure and software•Offsite Backup •Develop a Contingency Plan •Regain Customer Satisfaction Ratings
SWOT Analysis -‐ Threats
• Loss of power or equipment malfunction
• Loss of revenue
• Cyberterrorism/ hacking
Recommendations• Improve Information Technology infrastructure •Establish an Offsite Backup Location•Develop a Contingency Plan
• Test Backup Systems Regularly
Recommendations Continued•Increase Effective Communication with Customers and Employees•Reduce Ticket Prices•Use Current Resources More Effectively •Reconnect with all customers affected by the power outage
Conclusion
• Delta had a computer outage on August 8• Customers were not notified of flight delays/cancellations• Infrastructure is built on legacy system from 1990s• Prematurely accused Georgia Power to be at fault
Conclusion Continued
• CEO posted a video and addressed the customers• Gave vouchers, refunded, and rebooked flights to appease customers• Delta should upgrade software and hardware• Delta should implement a offsite backup and test regularly
Works CitedAllison, David. "Expert: Delta's Computer Outage Unlikely to Permanently Damage Its Reputation or Business." Atlanta Business Chronicle. American City Business
Journal, 8 Aug. 2016. Web. 12 Oct. 2016.
Carey, Susan. "Delta Air Lines CEO Takes Responsibility for Outage." WSJ. Wsj.com, 2016. Web. 05 Oct. 2016.
"Corporate Stats and Facts." Delta News Hub. N.p., n.d. Web. 13 Nov. 2016.
"Delta History." Delta History. N.p., n.d. Web. 13 Nov. 2016.
"Delta Air Lines Inc." DAL Annual Cash Flow Statement. MarketWatch Inc., 10 Oct. 2016. Web. 12 Oct. 2016.
Holmes, Frank. "These Are the 7 Biggest US Airlines." Business Insider. Business Insider, Inc, 06 Apr. 2016. Web. 12 Oct. 2016.
Works Cited ContinuedHub, Delta News. ".@Delta CEO Ed Bastian Apologizes to Customers for the Disruption to the Airline's Operations Today.https://t.co/Fl4mDAbdxN." Twitter. Twitter,
2016. Web. 05 Oct. 2016.
Investor Update. N.p.: Delta Airlines, 4 Oct. 2016. PDF.
Lasiello, Emilio. Getting Ahead of the Threat. N.p.: Aerospace America, July-‐Aug. 2103. PDF.
McCartney, Scott. "The Best and Worst Airlines of 2015." WSJ. Wsj.com, 2016. Web. 11 Oct. 2016.
Reuters. “Brace Yourself for More Airline Outages Just Like Delta's.” Fortune. 12 Aug. 2016. Web. Accessed 12 Oct. 2016.
Snead, Jeremy. "The Financial Loss Delta Suffered for Data Center Outage Is Shocking." The Financial Loss Delta Suffered for Data Center Outage Is Shocking. N.p., 13
Sept. 2016. Web. 19 Oct. 2016.