Planning and SWOT Analysis: Silver Airways

Introduction

Silver airways operate in the Caribbean. Recently, independent airways broadcasted its purchase of seaborne airlines situated in Puerto Rico. By purchasing the seaborne airline, silver airways have tremendously expanded its flight route within the Caribbean, thus making it the uppermost capacity airline to the Bahamas and the Caribbean from Florida (Silver Airways, n.d.). Granted that the airline has Caribbean and Bahamas flights, it also makes routes to the northeast and southeast states of the United States. Ideally, with the vast expansion and growth of silver airways, the organization needs to develop a strategic management process to accommodate the airline expansion programs and improve its services. The strategic plan can be formulated by analyzing the organization’s strengths, weaknesses, opportunities, and threats. After which, the company would create strategic goals and ways to make the management process successful.

SWOT Analysis

Strengths

Silver airline has little strength, including its expansion into the northeast region of the United States. Since the company already has a business operating in the targeted region, it’s expected to make a boost on its move, resulting in success. Additionally, due to a business in the northeast states, silver airlines can offer Caribbean flights in those locations resulting in more revenue. Also, the company is deviating from the old model crafts and acquiring luxurious, modernized planes like the ATR-42-600. Through this strategy, the company will offer exemplary services to guests, attracting more customers, thus leading to its success. Again, the acquisition of the seaborne airline has enlarged the company’s market, thus stabilizing its market position and increasing its total revenue (Silver Airways, n.d.). The company should perfect its strength and use them as a competitive advantage to sustain its market position.

Weaknesses

Although silver airways have strongholds that will enable it to thrive in the airline industry, the company has weaknesses that encompass its expansion. The company should work on its faults and be tactical to succeed. According to “Silver Airways” (n.d.), the company’s weaknesses are; the company has only two business locations in the northeast region, which is insufficient to serve the entire region; thus, the company has to open more business locations to sufficiently serve the new territory and attain its market demand. Unfortunately, the company has fewer teams to manage the newly ventured territories. The deficiency of workforce is making the company offer few services which do not attain the required standards, thus resulting in low customer turn-ups. The company is forging new business partnerships in the northeast region of the United States based on its current business affiliation, which is inappropriate. “Silver Airways” (n.d.) depicts “the company codeshare conglomeration with United, JetBlue, and Avianca.”

Opportunities

The expansion of silver airways is accompanied by a few opportunities that the company should utilize to improve its performance. First, the company should generate a team that can manage the newly ventured territories; this will help the company to succeed. Second, its expansion to the northeast region will increase its market and improve its influence; thus, the company should take advantage of its expansion to identify its market position. Third, the company has acquired a modernized ATR-42-600, a new model aircraft with the widest cabin (Silver Airways, n.d.). The craft can be marketed to mobilize new customers to silver airways. Also, the company is offering flights to the Caribbean; thus, there is an opportunity for the company to expand its business to other new territories across the nation. Again, as the company is preparing to allocate teams in the newly ventured regions, it has the opportunity to allocate experienced workers and expertise in every region that the airline covers to maintain its business values and mission (Lumen Learning, n.d.).

Threats

The company’s weaknesses have developed threats that hinder the success of silver airways. The company is encountering a stiff market position in the venturing areas due to its weak establishment in the northeast region; local airlines offer stiff competition that might result in its collapse. This is accompanied by low-price services offered to customers by the dominating airlines, which give silver airlines difficulties in offering services. Nevertheless, the company is expanding too first, thus exceeding its business model, putting the company at risk. Lastly, due to expansion, various changes occur within the company, resulting in silver airways perspective and mission diversion (Lumen Learning, n.d.). To succeed, silver airways should focus on its goals and mission even during organizational change.

Goals and Objectives

Strategic Goal 1

Goal: to offer services to more markets within the United States and expand worldwide. Silver airways should aim at expanding its services across the nation and advancing into an international airline (Learning, n.d.).

Objective 1: to remain true to the company’s vision of expanding nationwide and globally. The company needs to focus on its vision. Therefore as it is currently expanding in Caribbean markets, the company should develop a strategic plan to grow internationally (Learning, n.d.).

Objective 2: effective selling and marketing of services. Modeling the current Caribbean expansion helps in branching out into new markets globally. According to Evans (2015), the firm can acquire this by having a detailed and cohesive plan that entails a sales approach, delivery strategy, pricing, market plan, and value proposal. This will create market differentiators, improving market acceptance and revenue growth for the company.

Strategic Goal 2

Goal: the creation of a team-based business structure for its topographical locations. Silver airways should create a team-based business structure that reduces its dependence on management.

Objective 1: work specialization among the employees. The company needs to grow successfully through a team-based business structure. According to Evans (2015), this can be achieved by having special training for every employee and team according to their allocated task, such as a team specializing in the market. This enables employees to decide without multiple approvals from management According to (Evans, 2015).

Objective 2: attaining streamlined processes. According to “Lumen Learning” (n.d.), streamlining processes reduce administrative cost. Training employees to understand what silver airline represents while concentrating on new markets will help the company in flight prognostication.

Strategic Goal 3

Goal: merging with the airline serving the northeast region of the United States. Silver airways should merge with the dominating airline in the northeast regions to reduce stiff competition.

Objective 1: administration of industry analysis. Silver airways should conduct an industrial analysis since the company faces stiff competition in its targeted expansion area. According to Siff (2012), this will help review the various market and financial factors in the airline industry and analyze competition that affects the business. “Lumen Learning” (n.d.) emphasize that the analysis will enable the company to understand important factors in the industry that would be used as a competitive advantage.

Objective 2: analysis of the northeast region airline’s performance. For the company to merge with the northeast region airline, it has to make its analysis of the company. According to Siff (2012), Silver airways should analyze the company to ensure that merging would be advantageous and long-time profiting.

Conclusion

Silver company acquiring the seaborne airline has increased its market and flight volume. The merge of the companies has resulted in increased Caribbean flight and proposed expansion in the northeast region of the United States. While formulating the strategic goals for the company to have a successful expansion, a SWOT analysis has to be done. Silver airways have few strengths as it will only benefit from the expanded market and having ATR-42-600 aircraft replacing the older model craft. Moreover, the company has the opportunity of expanding its territory and improving its service, enticing the customers with the modernized ATR-42-600 aircraft. It can maintain its business value by allocating an experienced workforce in every airline base. Inversely, the company has weaknesses such as few workforces, few business locations in targeted areas, and dependence on current business affiliation while creating business relations.

Similarly, the company is threatened by stiff competition, rapid expansion, and change in the company mission due to organizational changes. Condignly, strategic goals that the company should acquire to have successful expansion are; servicing more markets across the nation and expanding globally. Second, the company should create a tea-based business structure, and lastly, it should merge with the dominating airline in the northeast region of the united starts. Ideally, the expansion of silver airways to foreign areas is a good business strategy and should be conducted following the analysis.

References

Evans, M. (2015, March 4). 10 Key Steps To Expanding Your Business Globally. Retrieved from https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-toexpanding-your-business-globally/#1a965f5f3803

Learning, L. (n.d.). Module 4: Principles of Management. Retrieved from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/the-roleof-strategy-in-management/

Learning, L. (n.d.). Module 4: Principles of Management. Retrieved from https://courses.lumenlearning.com/wmopen-principlesofmanagement/chapter/stagesand-types-of-strategy/

Lumen Learning. (n.d.). Module 6: Principles of Management. Retrieved from https://courses.lumenlearning.com/wmopenprinciplesofmanagement/chapter/commonorganizational-structures/

Siff, L. (2012, August 20). The 7 Deadly Sins Of Mergers And Acquisitions. Retrieved from https://www.forbes.com/sites/lawrencesiff/2012/08/20/the-7-deadly-sins-ofmergers-and-acquisitions/#415263917237

Silver Airways. (n.d.). Company Information. Retrieved from https://www.silverairways.com/about-silver/company-information