Value Chain Analysis of Delta Air Lines

Delta Air Lines is a legacy carrier and the world’s 2nd largest US aviation company. It began its journey in 1925 by the name of Huff Daland Dusters. Today, we’ll discuss the value chain analysis of Delta Air Lines supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Substitutes of Delta Air Lines

• JetBlue
• United
• Southwest Airlines
• British Airways
• Alaska
• Skywest
• American Airlines
• Frontier

The Value chain analysis of Delta Air Lines supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Delta Air Lines value chain analysis company example as follows;

Value Chain Analysis of Delta Air Lines

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Delta Air Lines supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Delta Air Lines

Some of the five main primary activities in the value chain analysis of Delta Air Lines supply chain analysis are as follows;

Inbound Logistics of Delta Air Lines

I-Diverse Suppliers

Delta Air Lines prefers to collaborate and partner up with a diverse range of supplier companies. In fact, the aviation company employs the products and services offered by women, minorities, and qualified small businesses. The objective is to amplify the return of Delta Air Lines’ customers, communities, employees, and stakeholders. According to an estimate, approximately 51% of the company’s suppliers belong to such individuals of minority and women-owned business suppliers.

II-Relationship with Suppliers

Delta Air Lines has a strong commitment to building a better and improved professional relationship with MWBEs (minority and women-owned business enterprises). In fact, the airline company motivates its suppliers to engage in the same practices of diversity. Building a better relationship with diverse suppliers plays a key role in the growth and success of the company. They have the capability to provide quality products and services to the competitive business environment.

II-Supplier Selection Criteria

In order to regulate suppliers; Delta Air Lines has set up a clear code of conduct, standards, and guidelines for suppliers relevant to; environmental protection, moral and ethical conduct, customer service, and safety standards and protocols. The supplier selection criterion of Delta Air Lines is as follows;

• Competency and capability of suppliers’ business area line
• Capability to grow with the company Delta
• Proven track record and strong references
• Healthy financial position
• Value-added service capabilities
• Cost of Ownership
• Comprehension of Delta Air Lines business operations

Outbound Logistics of Delta Air Lines

I-Distribution Partners

In order to provide a smooth and seamless customer experience, Delta Air Lines and its partner airlines employ multiple distribution partners and channels to keep up with customer expectations. The company makes sure of the transparency of products, features, and fares at all channels; it helps the company to build a trustful relationship with customers.

Operations of Delta Air Lines

I-Flight Operation

Delta Air Lines engages in hundreds and thousands of operations to make sure the smooth running of business processes and operations. It comprises of following;

• Flight scheduling
• Ticket retailing and sale of tickets
• Communicating with customers and requesting flight delays and postponing
• Allocating duties of flight staff and pilots
• Making sure passengers are on the right flight
• Right timing of takeoff and landing of airplanes

II-Repair & Maintenance Operations

Delta Air Lines has a very large fleet size comprising of roundabout 982 airplanes and offers 305 destinations in 52 countries across the world. The company has invested a significant amount of capital resources in building a TechOps department for the repair, maintenance, and overhauling of its aircraft and airplanes.

Marketing & Sales of Delta Air Lines

I-Media Channels

Delta Air Lines employs multiple media channels for the marketing, promotion, and advertisement of its air travel products and services. They’re like digital media, social media platforms, print media, TV commercials, and others.

II-Loyalty Programs

In order to attract new customers and retain the existing ones; Delta Air Lines launches various types of loyalty programs and offers rewards and incentives to regular and frequent travelers. They earn mileage every time they travel from Delta Air Lines, and they can cash out the mileage credit for hotel booking, renting cars, and booking flights.

Services of Delta Air Lines

In order to improve the customer service experience, Delta Air Lines offers a wide range of services to on-flight passengers. The company provides multiple methods and ways of entertaining customers whatever seat they choose. Some of them are as follows;

• Special meals
• Food and drinks
• Free messaging
• Delta studio
• Free-wi-fi in-flight
• Boarding priority

Supporting Activities of Delta Air Lines

Some of the main supporting activities in the value chain analysis of Delta Air Lines supply chain analysis are as follows;

Infrastructure of Delta Air Lines

Delta Air Lines has established a very large infrastructure of fleet size, a worldwide network of distribution partners, distribution centers, and contracts with airports. Well-developed infrastructure helps the company to smoothly perform its operations at a mass scale.

HRM of Delta Air Lines

Delta Air Lines has a network of approximately 95000 employees and workers. The human resource department of the airline brand plays a key role in building a diverse and innovative workplace culture, offering equal opportunities for all regardless of gender, race, or any other differences. The company has earned the following awards recently;

• Best Places to Work by GlassDoor – 2023
• Best Places to Work For Diversity Inclusion – 2022
• Newsweek Best Customer Service – 2023
• World’s Best Employers by Forbes – 2022
• World’s Most Admired Companies by Fortune – 2023

Technological Development of Delta Air Lines

According to an estimate, Delta Air Lines invested approximately 340 million in research and development in 2023. Technological development and efficient operational processes are highly significant for the aviation brand to gain competitiveness and gain cost efficiency. In fact, the company is investing resources in sustainable technological development and plans to achieve zero carbon emissions by 2050.

Procurement of Delta Air Lines

Delta Air Lines is highly cautious about sustainable and ethical procurement of products and supplies. In fact, the company has developed clear guidelines and rules for suppliers to engage in ethical practices comply with the human rights standards, and no exploitation of workers.

Conclusion: Delta Air Lines Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Delta Air Lines; we have realized that Delta Air Lines is the world’s 2nd largest airline. If you are learning about the Delta Air Lines value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.