Final answer:
After the COVID-19 crisis, Delta Airlines' strong balance sheet is less likely to be a source of competitive advantage as financial health is a basic expectation for all airlines in the recovery period. Network, people, and customer loyalty may continue to provide competitive advantages through structural benefits, skilled workforces, and strong brand relationships, respectively.
Step-by-step explanation:
In assessing the factors discussed in Delta Airlines Inc.'s strategic report, we can consider their potential as sources of competitive advantage post-COVID-19.
- Network: Delta's vast network of destinations is a structural advantage but could be replicated over time by competitors. It remains critical but not necessarily unique in the long term.
- Balance Sheet: A strong balance sheet provided resilience during the crisis, but as industry financial health stabilizes, this becomes a basic expectation rather than a unique advantage.
- People: The value of skilled and dedicated employees persists post-pandemic, maintaining people as a potential competitive advantage, thanks to their expertise and service quality.
- Customer Loyalty: Customer loyalty can be a sustained competitive advantage if Delta continues to deliver superior value and customer experiences that foster loyalty beyond the crisis.
Considering this, the balance sheet, while certainly important, is less likely to be a source of competitive advantage after COVID-19 since strong finances are a standard requirement in the post-pandemic era. As the industry recovers, many airlines will aim to strengthen their balance sheets, making this less of a differentiating factor.