This report analyzes the expansion strategy of Silver Airways through the acquisition of Seaborne Airlines and identifies the business objectives for the organization.
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Project 1:Planning and the SWOT Analysis (Your Name) BMGT 364 (section number) (Instructor’s Name)
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Introduction Silver airways have recently announced that they are going to purchase Seaborne Airlines, whose headquarters are in Puerto Rico. This report will identify that expansion of the flight routes across the Caribbean will make the company become the highest volume airline. This is the primary motive of this acquisition strategy of Silver Airways. As an assist to the manager of Silver Airways, the researcher would undertake the strategy of analyzing the unique business value propositions of Silver Airlines to propos business objectives for the organization. SWOT Table StrengthsWeaknesses Since2013whentheorganisationwas purchased by investment firm victory Park of Chicago, silver Airlines started their upstream journey. The biggest sprint of the tradition is that in spite of maintaining a small fleet after BlueCross,theyhavestoppedflyingon behalf of the larger carriers, and launched theirownairplanes(Russell,2017).The organization has been able to deliver value theirowntargetmarketsegmentby emphasizingontheundersidemarketsof southeastern United States, Florida and very SilverAirlineshasexpandedtheirflight routes connecting the Caribbean areas which makes them apparently the highest volume airlines among the organizations connecting places like Bahamas as well as Caribbean fromtheFloridaregion(Stoller,2019). Nevertheless the recent decisions undertaken by the U.S. government is a primary reason of body for the organization (Whitefield, 2017).
recently to the Caribbean (Russell, 2017). Silver Airlinesis developing definitionby seekingnewnichemarkets.Oneofthe primary success points of the organisation is that they were able to launch new business routes like the Tallahassee-orlando route or the Tampa-key West as well as the pensacola Tampa routes (Silverairways.com, 2019). Theirweaknesswillbeevidentsincethe governmenthasnotdecidedwhichairline agency will serve the Havana region. The smallest sized aircrafts of silver Airlines is one of the primary points of sale in their success strategy. This strategy helped them to achieve point of sales in Florida, Cuba and other new niche markets. According to two silver Airlines, they have the advantage of maintenance aircrafts having fewer seats to fill. For evidence Jetblue uses their 162 seat capacity Airbus A 320 S. Which aircraft is used for flying daily from Fort lauderdale to Camaguey. On top of that, the rate of acquisition of market share will always remain low in initial yearsofservice.ThisisbecausetheUS governmentdoesn’tpermitlargertourist groups or large number of tourists at a time to visit the Caribbean Islands (Russell, 2017). Thereforeitisuncertainwhethersilver Airlines will meet and overwhelming demand in the initial years of their service. In the same way Southwest Airlines also uses their 143 seat Boeing aircraft. However, any passengers trying to establish connections in Fort lauderdalewill have to aircraft only and which will endure higher airfare. AlthoughtheCEOofsilverAirlinesis emphasising on the fact that they are trying to do things which are making economic sense consideringthecurrentenvironment,they havestillnotbeenabletoestablishtheir
unique service in the heaven region where the demand is is most probably going to be the highest.ThelackofManpowerand foundationstrengthiswhathinderingthe government from giving permission to Silver Airlines to connect Havana from the areas like West Palm Beach, key West, Jacksonville as well as Fort Myers. OpportunitiesThreats AlthoughsilverAirlinesdonothaveany massivegrowthplanfortheforeseeable future, the decision of merger with bigger Airlines, undertaken by victory will help in injectingMoremarketcapitalwhichwill enable each to raise their brand awareness. Stakeholder groups like government which have impacted the expansion strategy of the organisation in many ways will start believing intheinfrastructurestrengthofthe organisation. TheairtravelbusinessinCubaisnot consolidated and faces continuous tabulations emphasizingontheeverchanging governmentregulations(Silverairways.com, 2019). Although the governmentpermitted silver Airlines to fly their airplanes in the Florida Cuba region, they were not able to extend their service to the Havana region and the interior smaller Cuban markets which they were actually intending to target with their small 60 passenger capacity flights. Theorganisationmightrequiremore turboprops as well as smaller regional Jet As an account of this, silver Airways would probably suspend their service. The smaller
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aircraft. Currently e silver Airlines is making the strategy of using smaller aircrafts which are probably used before. This will help them inreducingoperatingcost.Theevening strategyofexpandingtheareaofservice withoutmakingmuchhigherexpenseon otherappropriationsofflightservice including purchase of new flight for hiring of new maintenance members for flights, silver Airlinesisdeterminedtoexchangetheir service deeper areas of Caribbean and with furthermoreflightstheywillbeableto ultimatelyconnecttheirhubsinFlorida region. The consciousness of the expansion strategy is the unique point of business proposition for SilverAirlines.Theyhavetargetedat differentshareinthemarket.Yet,silver Airlines is trying to establish their service Monopoly over the tubal, Florida and affect the entire Caribbean region with short haul flight customers (Silverairways.com, 2019). budgetandeconomicflightfaredoesnot allow them to earn high-end annual revenue. In this context former another airline knownThe biggest threat to the organisation is that
asindependentAirlineswhostartedtheir unique journey from 2004 after their loss of contractwithUnitedExpresscanbe highlighted here. Their business was folded down within 2 years of market entry since their service quality could not compete with theestablishedcarriers(Silverairways.com, 2019).Nevertheless,youshouldalso rememberthatothertwothingsarethere whichsilverAirlinesshouldremember. Currently there inefficient to handle larger aircraft. Market strength does not allowed to occupy market territories of established air ferryingorganisationslikeSouthwest Airlines. they are planning to stop serving 9 of the most important Cuban cities that stand out in the vicinity of Havana. Mostimportantly,Whitefield,M.(2017) informsthattheUSdepartmentof transportation had provided the authority for regular flight scheduling from the USA to Cuba communicating through these regions. Goals and Objectives STRATEGIC GOAL 1 Silver Airlines had already decided that they are going to expand the territory of their service by keeping their operating cost almost the same. This is possible by running used flights. The profit
sharing economic strategy of silver Airlines is the unique proposition of there partnership with Seaborne Airlines. Both organisations would be able to to serve the extended customer base of the Caribbean region without enhancing their individual operating cost (Stoller, 2019). The brand awareness of the organisation would increase after this merger because their service capacity will be evaluated as 1 individual brand only. STRATEGIC GOAL 2 The second objective is to develop the consumer perception regarding Silver Airways flights. The brand proposition had been affected by the poor in room service of flight attendants. Customers had complaint about improper checking protocol at the airports, alarm with lack of proper service as the two major concerns for the organisation. Incorporating the flights of C1 Airlines into their service category, the organisation is trying to change the taste of the customers so that they can observe developments and newness in the service quality of the organisation. STRATEGIC GOAL 3 The third objective is to provide faster flight service to customers by the inclusion of the 50newATS 600 series aircrafts. It would not have been possible for Silver Airlines sanction this big budget purchase without the incorporation of the stock capital from seaborne Airlines. Hence, the emphasis is on providing faster service to the customers seeking for Regional fleets (Whitefield, 2017). This would help them to differentiate their quality of service from other regional market players associated with United Express.
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Conclusion The organization is adopting an unique sales strategy by means of which they are going to serve the smaller and intended group of customers. Nevertheless, the acquisition of seaborne will add on to their fleet strength as well as financial strength also.
References Russell, E. (2017). ATR propels itself back into US market: European manufacturer ends two- decade sales hiatus, as Silver Airways makes commitment for up to 50 turboprops.Flight International. Silverairways.com, (2019). Silver Airways Announces Major Strategic Growth Developments and New Leadership.Press Release.Retrieved on 6thSeptember 2019. Retrieved from https://www.silverairways.com/about-silver/press-room/article/2017/08/01/silver- airways-announces-major-strategic-growth-developments-and-new-leadership Stoller, M. (2019). Newly Transformed and Customer Focused Silver Airways Makes History with First New ATR-600 Series Flight in United States. First time ATR-600 operated by U.S. carrier and first time a U.S. independent regional flying airline has taken delivery of a new aircraft in many decades.Businesswire Online.Retrieved on 6thSeptember 2019. Retrievedfromhttps://www.businesswire.com/news/home/20190422005435/en/Newly- Transformed-Customer-Focused-Silver-Airways-History Whitefield, M. (2017). Weak demand prompts two U.S. airlines to cancel Cuba service.The Miamiherald.(Online).Retrievedon6thSeptember2019.Retrievedfrom https://www.miamiherald.com/news/business/article138231698.html