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In: Operations Management

Using research, complete a SWOT Table about silverAirway/seaborneAirways and Provide a minimum of three strengths, three...

Using research, complete a SWOT Table about silverAirway/seaborneAirways and Provide a minimum of three strengths, three weaknesses, three opportunities and three threats and Provide an in-text citation for each item presented in the SWOT Table. Silver airway has purchased Seaborne Airways.

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Expert Solution

In the corporate world it's important to keep up with demand. Growing a business and striving for new markets poses numerous obstacles. Silver Airlines and Seaborne Airlines are two companies offering a niche service, and a partnership between the two firms will provide them with the advantage they want. This SWOT looks at the strengths and disadvantages these two businesses will face as well as certain competitive opportunities and challenges that they will concentrate on after they combine.

Strengths

Weaknesses

Highest volume airline to the Bahamas and the Caribbean from Florida

Only being able to provide short trips

Seaborne is the largest Caribbean based airline for 25 years, so name recognition

Blending two corporate structures may be difficult getting two companies to agree on one structure

Can accommodate short trips

Being able to accurately predict demand based off a product that has not been operationalized

Opportunities

Threats

Can expand the client base

The merge may not be big enough to compete with other airlines servicing the same market sector

Increase revenue

Having to rebuild trust through new business relationships

Increase competitive advantage

Not being able to provide regular customers with the same level of experience during the merge

SWOT Analysis:

Seaborne Airlines is the biggest Caribbean based airline for 25 years, according to research. It flies legendary seaplanes and an airport-based aircraft that can fly around the Caribbean islands. The 25 years of operation will give Silver Airways the name recognition it needs to draw current and even new customers. This would be a major help for the company to be able to handle fast flights to the Caribbean giving travelers easy access to a convenient getaway. This may be a drawback to merg the organization by having only short trips. That will mean that before they could catch direct flights, travelers up north would first have to fly to Florida to take a freight airplane to their destination. There might not be a market to follow the Caribbean 's offer of fast local trips. This can be difficult to understand how to satisfy the need or build the market, as such systems have not previously been in place.

There could also be incentives that may be generated by the deal. This partnership will be used to create a new stable of clients. Having the business larger by combining the two firms provides a corporate pool with more comprehensive capital with facilities. The merger to the benefit of the Northeast US also allows a greater source of revenue to be created. It allows the companies to expand; so they can charge more for their unique services. Any other carriers sell similar packages, which offers the potential to monopolize the market.

To conclude, There are a few risks, to say. Since there are two small businesses, this does not produce a broad enough operation to survive in the airline industry. There are several major airlines offering direct flights to the Caribbean from locations other than Florida or the United States Southern portion. It generates a feeling of mistrust among certain clients by integrating the Northeast US. Customers may think rates are going to go up, or facilities are going down. Consumer service will be one vulnerability that will predominate. Consumer service may be affected when these two businesses are combined. Accommodations and services that they are accustomed to may no longer be offered or may not provide the same degree of comfort as preparation is taking place for new workers.

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