Strategy and change management Essay Example | Topics and Well Written Essays - 3000 words - 1

Strategy and change management - Essay Example With the aim to reduce the operational cost several business enterprises engaged in the airline industry decided to merge. The year 2008 marked the emergence of the world’s largest airline named Delta after the successful merger of two proclaimed organizations namely Delta Airlines, Inc and Northwest Airline Corp. The capability of the newly developed airline company increased as a result of the merger. Northwest Airline is now a subsidiary of the former organization. The low cost airlines seem to compete in the market where the density of passengers is high and in such a market the low cost airlines can enjoy the competitive advantages. They offer timely services and the low cost acts as the catalyst in driving the travellers to the airlines booking offices. In the airline industry the economies of scale theory has a major role to play. The density of traffic allows the airline organizations to offer such low fares and is a prime feature of the industry. The economies of scale theory also bring some non price benefits along with it. The airline companies try to compete with the tool of product d ifferentiation and the quality customer service seems to make up the other tools of competition. The airline operators in Europe and America had to face turbulences during the period of downturn. The competition revolved around fares, service and operational efficiency. The over reliance on the market of North America has been one of the reason for the turbulence for the company under consideration. The topic of merger and acquisition is a topic of discussion in the airline industry. The price of fuel and the increased cost of operation have acted to shuffle the balance of the forecasted growth for the airline operators. The assignment will take into consideration the significance of the merger that exists between Delta Airlines and Northwest Airlines. In 2008 the two companies discussed