SWOT - Project 1 PDF

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Project 1...

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Tasty Products Executive Vice President Demi Goodson BGMT 364 6385 Michael Magreta

Introduction Tasty Products has over 25 years of experience manufacturing and distributing organic food products within the United States. Recently, it was announced that a new product line will be . This would expand flights within the Caribbean beyond the Baamas. This paper will provide the situational analysis, goals, and objectives for Silver Airlines and how the company will utilize this information in becoming a major United States airline.

SWOT Table Strengths Average over 125 flights daily to over 18 destinations in Florida and the Bahamas (Silver Airways, 2017. Company History Para 1.)

Weaknesses Only one Northeast Network flight that travels during seasonal summer service. (Silver Airways, n.d. Silver Airways/Seaborn Airlines, Check Out Where We Fly Diagram.) Aircraft is a single fleet of regional aircraft. Codeshare partner with major United States airlines Jetblue and United Airlines. (Silver Airways, August 2017. Company History Para 3.) (Silver Airways, August 2017. Company History Para 1.)

Interline agreement established with other major airlines; American Airlines, Delta Air Lines, US Airways, Alaska Airlines, Bahamasair, Hahn Air, and All Nippon Airways. (Silver Airways, August 2017. Company History Para 1.) Smaller regional aircraft allows for more flights per day from smaller airports. (Graver, 2020 Para 2.)

Only Florida based hubs: Fort Lauderdale, Orlando, and Tampa. (Silver Airways, August 2017. Company History Para 1.)

Dependent on codeshare partnerships and established interline agreements. (Silver Airways, August 2017. Company History Para 1.) Opportunities Threats Joining with the largest Caribbean-based Limited number of hubs outside of Florida. (Silver Airways, August 2017. airline, Seaborne (Silver Airways, n.d. Silver Airways/Seaborne Airlines Para 3.) Company History Para 1.) Agreement established to expand its Aircraft is a single fleet of regional aircraft. aircraft fleet with up to 50 new ATR-600 (Silver Airways, August 2017. Company

series aircraft. (Silver Airways, August 2017. Company History Para 3.) Newly appointed Chief Executive Office and President and Chief Financial Officer. (Silver Airways, August 1, 2017. Press Releases Para 6.) Increase presence beyond Huntsville, Alabama. (Silver Airways, n.d. Silver Airways/Seaborn Airlines, Check Out Where We Fly Diagram.)

History Para 3.) Predefined routes have been established and travel frequently. (Silver Airways, August 2017. Company History Para 4.)

SWOT Analysis: Silver Airways In the quest for Silver Airways to become a major United States airline there are several areas of strength within the organization that allow for this goal to be effective. (Lumen, n.d., Common Frameworks for Situation Analysis Para. 15) The organization has established presence in the Florida and Bahamas region as one of the leading airlines. It can produce several flights daily to multiple locations providing adequate transportation and superior service throughout the Southeast region. Their codeshare partnerships and interline agreements creates marketing opportunities and increases their brand awareness. This could become an opportunity in the future for a returning customer to utilize their services in the future. Lastly, their smaller aircraft allows them to schedule flights from smaller airports and have more frequent flights. Some airports have narrow runways and can often time limit larger airlines from landing. As with any organization, Silver Airways has a few weaknesses that could limit their pursuit in becoming a major United States airline. (Lumen, n.d., Common Frameworks for Situation Analysis Para. 15). The Northeast network flight is only during a set seasonal period. In 2020 the Northeast network flight took place from

May 21, 2020 to October 14, 2020. A conclusion can be drawn that the flights only happen during the months of “good weather.” The northeast region is known for their harsh winters. With the organization not traveling during that time it limits the amount of flights the company can book. Another area of weakness is the organization’s regional aircraft. Currently, Silver Airways utilizes only twenty-two Saab 340Bplus aircraft, which to be competitive with other major airlines it would need to increase significantly over time. For example, Delta Airlines currently has over 4 different aircraft manufactured by Airbus, Boeing, Bombardier, and Embraer with hundreds of planes in its current fleet. (Delta Airlines, n.d. Our Aircraft.) To be able to compete with major airlines there are several opportunities Silver Airways has in begun to process that would move them forward. By joining the largest Caribbean based airline, Seaborne, they will expand their flight territory providing more options to customers. There is an agreement in place to increase their fleet by 50 new ATR-600 aircraft. This increase will allow them to offer more flights and better seating arrangements for its customers. Effective August 7, 2017 Steven Rossum was appointed the organizations new Chief Executive Officer (CEO) and Jason Bewley was promoted to President and Chief Financial Officer (CFO). With their extensive knowledge in aviation, this will continue to push the company to forward and bring new and fresh ideas. With the outermost point of travel being Huntsville, Alabama, the organization is looking to expand beyond the southeast region. This will generate more revenue and create brand recognition in markets that are unfamiliar with their service.

The biggest threat that Silver Airways faces is aircraft. While the Saab 340Bplus is an award-winning aircraft, it is still a regional aircraft that only holds a limited number of passengers. (Saab, n.d. Saab 340B.) This aircraft reduces the amount of bookings the organization can handle at one time. The number of hubs posses another threat to the success of the organization. At this current moment all three hubs of the organization are centralized in Florida. To become a viable contender in the US airlines market, they must establish hubs in different parts of the United States.

Goals and Objectives STRATEGIC GOAL 1: To become a major US airline, Silver Airways must increase their aircraft fleet, continuously. There is a deal that completed the purchase of 50 new regional aircraft ATR-72-600s series. (Silver Airways, August 1, 2017. Press Releases Para 6.) They would also need to purchase larger aircraft for longer flight times. *Objective 1: Continue to purchase at minimum 50 new aircraft every three to four years to expand its fleet. *Objective 2: Incorporate larger aircraft that will allow for more passengers and for longer flight times. STRATEGIC GOAL 2: Silver Airways need to expand its territory outside of the southeast United States, Bahamas and Caribbean. (Silver Airways, n.d. Silver Airways/Seaborn Airlines, Check Out Where We Fly Diagram.) *Objective 1: Operate the Northeast Network as a permanent route year around.

*Objective 2: Establish a HUB in the Boston Area within three years to accommodate those customers in that portion of the United States. STRATEGIC GOAL 3: Increase brand recognition outside of the Southeast region. Silver Airways is known as the “the airline of choice in Florida and the Bahamas”. (Silver Airways, August 1, 2017. Press Releases Para 1.) *Objective 1: Create a long term marketing plan that would generate more customers in the states that border Florida. *Objective 2: Expand the loyalty program to include points accumulated from their interline agreement and codeshare partners.

Conclusion Silver Airways has a strong presence in the Southeast region and Bahamas. The acquisition of Seaborn Airlines will allow them to expand, but protect their company as well. To become a major US airline there is risk involved that this organization may not be prepared to undertake. Expansion outside of their current territory is the determining factor of their success. While their goal is attainable it will take quite sometime to plan, establish and succeed.

References Zendesk. “This is Zendesk.” Zendesk, retrieved 9/8/20. https://www.delta.com/us/en/aircraft/overview Graver, Brandon. “Many U.S. air carriers miss their first climate goal.” The International Council on Clean Transportation, retrieved 9/8/20. https://theicct.org/blog/staff/us-aircarriers-miss-first-climate-goal-sept2020 Learning, Lumen. “Common Frameworks for Situation Analysis.” Lumen Learning, retrieved 9/7/20. https://courses.lumenlearning.com/wmopenprinciplesofmanagement/chapter/common-frameworks-for-situational-analysis/ Saab AB. “Saab 340B.” Saab AB, retrieved 9/8/20. https://saab.com/civilaerospace/regional-aircraft/regional-aircraft/saab-340b/ Silver Airways LLC. “Press Releases.” Silver Airways, retrieved 9/8/20. https://www.silverairways.com/about-silver/press-room/article/2017/08/01/silver-airwaysannounces-major-strategic-growth-developments-and-new-leadership Silver Airways, LLC. “History.” Silver Airways, retrieved 9/8/20. https://www.silverairways.com/history Silver Airways, LLC. “A Tale of Two Tails.” Silver Airways, retrieved 9/8/20. https://www.silverairways.com/about-silver/seaborne...