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

Strategy and change management - Essay Example Therefore, several leading airlines have decided to merge with each other in order to reduce several business threats. Delta Airlines, Inc. and Northwest Airline Corp. in 2008 have proclaimed that they are going to merge with each other in order to create world’s largest airline named Delta. . Due to merger, the flexibility to acclimatize to the economic challenges of Delta has increased. After the merger, Northwest Airline is the completely owned subsidiary of Delta. According to the market characteristic theory of low-cost airlines, it is feasible that low-cost airlines usually compete in such a market where the traveller density is high enough to develop the competitive advantages by offering rapid-return and time to time services. Lower fares usually results from the economies of traffic density. This type of economies of scale is one of the key features in the airline network model. Such strategic actions also bring certain non-price benefits also. Current trends towards the product differentiation seem to be one of the elements of competition. Due to such strategic actions the airline companies have increased incentive to correspond and improve customer service quality. Due to the economic down turn the company along with the whole airlines companies in Europe and America went through a tough phase. The competition has been intense regarding fares, services and routes. Also the company indulged in to a legal battle with the union airlines. A problem faced by the company has been the over dependence on the North-American market Merger and acquisition in airline industry is one of the interesting topics within the industry. The airline industry has experienced high disorder due to high operational cost and increasing price of petrol (Hackbarth and Miao, 2007, p.33). The study will reveal the effect of merger on the business performance of two leading airlines