Final Blog!!!!

The first day that I followed the stock price of Delta Airlines, its stock closes at $5.5 on 5/29/09. After that its stock price has been increasing and then dropped to $5.7 at 6/26/09.

Airlines industry becomes maturity market and fierce competition. After deregulation in 1978, airlines became more profitability by gaining more sales and profits. However, to be competitive in the industry, they need to make huge investment with acquisition and spending large capital in R&D for technology. Customer’s needs have been increasing with anxiety of safety, high quality of services and economic price. Afterward, they have been in severe competition to advance in technology. Also, they decrease the ticket price by using low cost strategy.

Delta Airline is the one who utilize the low cost strategy to be competitive and gaining market share. Delta closed its merger with Northwest Airlines to form the world's largest commercial carrier On October 29, 2008. In February 2009, the airline began consolidating gates and ticket counters at airports where both Delta and Northwest operate. Delta becomes muscular in the airline industry.

Although, there are a lot of barriers to be in this industry, but I believe that there are also many opportunities for growth and expansion in this industry. Travel businesses are growing, so this might support the growth of airline industry. Thus, I still would like to invest and work in this business and this company. Also, I would like to recommend Delta and airline industry to be an example in this class for next semester. There are many benefits and risks that could be good example for strategic analysis.