Planning and the SWOT Analysis
Introduction
In a recent announcement, Silver Airways declared its acquisition of Puerto Rico-based Airline, Seaborne. This expansion of flight routes to the Caribbean has increased the company’s airline presence in the Bahamas from Florida. Additionally, the company serves both the Northern and Southern states. This growth that stems from expansion requires Silver Airways to establish a strategic management process for its business operations.
Information based on strengths, weaknesses, opportunities and will be in the form of a SWOT table. Analysis of collected data will then be found on the merit and demerit of every item in the SWOT table. Finally, the article will be concluded with the formulation of strategic goals and how these goals will be achieved successfully.
SWOT Analysis Table
| Strengths | Weaknesses |
| Presently, Silver Airways command the Northern U.S airline market. | Silver Airlines currently operates in just two locations beyond the borders of the U.S. |
| The company is capable of expanding its airline services to the Caribbean, which is located out of the Northeast U.S. | Despite its planned expansion, Silver Airways lacks experts who will execute the plans beyond the American border. |
| The company has interline agreements with its partners, such as Delta, U.S. Airways, American Airlines, Jetblue, and Bahamasair. | – Enjoys a smaller market share and limited brand awareness.
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| Pilots enjoy considerable pay. | -It does not have its booking hence relies on other established airlines.
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| Opportunities | Threats |
| Since Silver Airways has started expanding beyond the U.S. borders in search of new markets, it can form its first alliance with Seaborne Airways. | Silvia is likely to lose sight of its ultimate goals. It is suitable for the Airline company to concentrate on its future success. Ensure that the business is established on a plausible rationale and solid ground that will propel the business ahead. |
| The company’s newly introduced ATR-42-600 craft will improve its operations hence high profits. | Many airlines offer low fare flights operating in Northeast U.S. |
| The company intends to launch leisure flights to the Caribbean and Bahamas. | The rate of competition in the airline industry is stiff.
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| Every destination that Silvia Airline stops must have teams to control the location. Grouping of workers must commence immediately to identify those with diverse expertise to address specific operational elements of the company. | The rate of growth and expansion to the external airline market. Therefore, the company should begin its launching session using the experienced executives from the mother company who have vast experience in flight operations.
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SWOT Analysis
Silver Airlines is planning to expand its operations into the Northeast U.S. market, and for this to happen, the company has shown some strengths that will facilitate this expansion. Since the airline company already operates in the Northeast U.S., it can offer flights to the Caribbean and neighboring locations as well. The newly acquired airplanes will lead the company’s success because it will attract more passengers.
The planned expansion beyond the company’s territories is deemed to present a few opportunities. Every location will be managed by a team of experts who have served in the industry for long to ensure the company succeeds in the newly discovered routes. The purchase of the ATR-42-600 aircraft is another sign that the company wants to succeed in the airline industry. The craft has the most extensive cabin and can carry many passengers; however, the company must market this craft in its new market. In addition to the Caribbean market, Silver Airlines can also look for other opportunities in other regions like Europe and Asia.
Expansion of the company’s operations to foreign markets presents both advantages and weaknesses. Presently, the company operates in two regions located in the Northeast region. While the urge for more markets in foreign countries will increase the company’s revenue, it lacks the experts to operate and manage transactions in the intended markets.
The current affiliations in the U.S., especially in the Northeast, will present a lot of challenges as the company divulges into new markets. These challenges are threats, and they will jeopardize the success of the expansion in the new markets. Another issue is stiff competition from established airline companies, which interferes with flight prices. The company intends to grow exponentially without putting other factors like having qualified staff to manage operations in new territories. Therefore, the company needs to stay true to its objectives and goals to propel the company towards success.
Goals and Objectives
Strategic Goal 1
Goal: Expanding its presence within America and beyond. Silver Airways is a small operator based in Florida. The company has already identified Huntsville, Southeast America states, and a few international countries that have a superb local demand.
Strategic Objectives: The first objective is to expand into the Caribbean. This expansion will only take place with proper planning on how to exploit more local and international markets. Silver must find a way to use its new crafts to reap more profits effectively.
The second objective is to develop a comprehensive sales strategy. This strategy includes a sales delivery, brand proposition, and pricing and marketing programs, which will help to differentiate Silver from other airline companies.
Strategic Goal 2
Goal: Develop a team-based structure for new locations. Foreign markets are always challenging and are bound to collapse if not properly managed. Team-based structures eliminate management layers and permit workers to make decisions without prior approvals.
Strategic Objectives: The first objective will involve training current employees in the company to equip them with essential management skills. The company anticipates growing exponentially in a few years to come, and these management skills will be crucial to sustain the growth and manage resources. The second objective is to acquire airline specialists. These specialists will maintain the new plans and manage finances in international markets. These new employees will be trained to comprehend what the airline company represents and its projections.
Strategic Goal 3
Goal: Forming codeshares with other airlines operating in the U.S. Silver Airways has operated on its brands for nine years, and it plans to grow. Silver Airways aims to form interlinks with local companies in the U.S. such as JetBlue, American Airlines, Delta, Alaska, and some international carriers to boost its presence.
Strategic Objectives: The first objective is to acquire a new craft. Since the company wants to extend its presence by flying more airplanes, it must replace its aging Saab fleet comprising of 16, 46-seat ATR-42s with four, 70-seat ARTs-72s. The second objective is to include new leadership. The company has appointed a new Chief Executive Officer and Executive Vice President because of their valuable contributions to the airline industry. These leaders will oversee how the operations are conducted within the company and ensure the company makes many flights than before and adequately manage the financial performance effectively.
Conclusion
This article has presented Silvia Airways’ strategic management process. The main aim of the company is to increase its revenue by expanding its operations domestically and internationally. To accomplish this, a SWOT analysis has been used to understand the company’s ability to expand its operations past the Caribbean. Currently, the company faces a lot of challenges accruing from stiff competition from established airline companies like American Express to lack of qualified staff to manage finances in international territories. However, if the company will leverage the three strategic goals, it will be among the most successful airlines in the future.