Case 27­ Delta Air Lines (2012): Navigating an Uncertain Environment FOF #1: Differentiation
In order to compete in a price­sensitive industry, Delta Air Lines needs to focus on differentiating itself from competitors. By doing this, Delta is creating sustainability through customer retention and loyalty. To set itself apart from competitors like United Airlines and
American Airlines, Delta needs to implement a program to improve customer service.
Because of Delta’s poor service reputation, I believe that the company needs to primarily concentrate on offering superior customer service as a way to gain a competitive advantage.
After Delta’s merger with Northwest, customer complaints increased significantly. In 2009
Delta’s customer complaints doubled the industry average, and only two years later accounted for a third of all complaints. Additionally, results from a survey done in 2011 showed that Delta had the lowest customer satisfaction rating out of Southwest, Continental, American, US
Airways, and United Airways at a staggering 56%. A rating as low as that is alarming, and can easily persuade consumers to ultimately choose competing airlines. In an attempt to counter diminishing brand loyalty and reputation, Delta needs to focus on the following three issues:
1.

Improving comfort­ This includes designing seats that accommodate passengers

of all sizes for trips of all durations. Legroom should be expanded. Additionally, the airline should offer a better selection of meals, snacks, and beverages, as well as focus on providing all­around better service from flight attendants. Also, more and better entertainment for long flights should also be provided. Even by offering on­board free wireless internet access, Delta would become the preferred airline for many consumers. 1% of revenue would fund efforts to
increase