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    CAL Conclusion

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    Cherrell Lynch
    Caribbean Airlines faces high competitive rivalry and medium threat of substitutes. It must maintain its competitive advantages of customer loyalty, employee productivity, and innovation. A SWOT analysis found weaknesses in its financial performance with $117 million in losses and complaints from customers and the government. Threats included heavy competition, removal of fuel subsidies, and threats from Guyana. The value chain identified activities like marketing, technology, and human resources that must be improved to provide customer value. A PESTLE analysis examined external political, legal, and technological factors that could impact Caribbean Airlines. An acquisition of Air Jamaica increased market share but resulted in financial losses due to lack of acquisition experience and planning. Integration and cultural fit issues also arose, impact

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    CAL Conclusion

    Uploaded by

    Cherrell Lynch
    648 views3 pages
    Caribbean Airlines faces high competitive rivalry and medium threat of substitutes. It must maintain its competitive advantages of customer loyalty, employee productivity, and innovation. A SWOT analysis found weaknesses in its financial performance with $117 million in losses and complaints from customers and the government. Threats included heavy competition, removal of fuel subsidies, and threats from Guyana. The value chain identified activities like marketing, technology, and human resources that must be improved to provide customer value. A PESTLE analysis examined external political, legal, and technological factors that could impact Caribbean Airlines. An acquisition of Air Jamaica increased market share but resulted in financial losses due to lack of acquisition experience and planning. Integration and cultural fit issues also arose, impact

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    Caribbean Airlines faces high competitive rivalry and medium threat of substitutes. It must maintain its competitive advantages of customer loyalty, employee productivity, and innovation. A SWOT analysis found weaknesses in its financial performance with $117 million in losses and complaints from customers and the government. Threats included heavy competition, removal of fuel subsidies, and threats from Guyana. The value chain identified activities like marketing, technology, and human resources that must be improved to provide customer value. A PESTLE analysis examined external political, legal, and technological factors that could impact Caribbean Airlines. An acquisition of Air Jamaica increased market share but resulted in financial losses due to lack of acquisition experience and planning. Integration and cultural fit issues also arose, impact

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    648 views3 pages

    CAL Conclusion

    Uploaded by

    Cherrell Lynch
    Caribbean Airlines faces high competitive rivalry and medium threat of substitutes. It must maintain its competitive advantages of customer loyalty, employee productivity, and innovation. A SWOT analysis found weaknesses in its financial performance with $117 million in losses and complaints from customers and the government. Threats included heavy competition, removal of fuel subsidies, and threats from Guyana. The value chain identified activities like marketing, technology, and human resources that must be improved to provide customer value. A PESTLE analysis examined external political, legal, and technological factors that could impact Caribbean Airlines. An acquisition of Air Jamaica increased market share but resulted in financial losses due to lack of acquisition experience and planning. Integration and cultural fit issues also arose, impact

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    Caribbean Airlines faces high competition and medium substitute threats. It needs to maintain customer loyalty, employee productivity and innovation to have competitive advantage. It also has weaknesses in financial performance and received complaints, and threats from competition and loss of fuel subsidy.

    Caribbean Airlines used the strategy of horizontal integration by acquiring Air Jamaica to gain its resources, networks and market power.

    The acquisition led to financial losses as Caribbean Airlines lacked experience in acquisitions and planning. There were also problems integrating Air Jamaica's culture which impacted customer satisfaction of Air Jamaican customers.

    Conclusion:

    As shown in the Porters five forces Caribbean Airlines has high


    competitive rivalry and the threat of substitute is at medium so the company
    must maintain their competitive advantage of customer loyalty, employee
    productivity and innovatively.
    Caribbean Airlines SWOT analysis showed that the company had
    weaknesses in their financial performance incurring US$117,000, 000 in losses,
    heavy government and customer complaints. The companys main threats
    however heavy competition, the removal of their fuel subsidy and threat
    received from Guyana. Wherever possible Caribbean airlines should convert
    weaknesses into to strengths and threats to opportunities.
    The value chain however, showed the firms interrelated activities that
    are needed to satisfy customer needs beginning with the relationship with
    supplier and procurement. The value chain also identified the activities that
    Caribbean Airlines management must concentrate on to contribute customer
    value and lead to competitive advantage. These activities include providing
    efficient marketing and sales, constantly improving technological resources and
    heavily investing in their staff in the human resources.
    The aim of the PESTLE analysis was to identify the current external
    factors affecting Caribbean Airlines like the political regulatory requirements
    imposed on Caribbean Airline by the FAA ad the legal laws. The model also
    determined the external factors that can probably change in the future like the
    launching of new tracking and high speed technology that Caribbean airlines
    should posses to become more efficient.

    Caribbean Airlines also uses the growth strategy of horizontal integration.


    The company acquired undervalued Air Jamaica to gain access to the firms core
    competencies, resources, expand distribution networks and increase market
    power. Caribbean airline was also engaging in the direct attack strategy of to
    take over the smaller Air Jamaica firm to increase market share and retain more
    customers.
    The acquisition impacted on the companys financial performance, leading
    to financial losses noted in the SWOT analysis. This was due to Caribbean Airlines
    lack of experience in acquisitions and poor financial planning.
    Caribbean airlines experienced organisational change after their acquisition
    however the organisation was unable to integrate Air Jamaica and synergy didnt
    occur. There were also problems of cultural fit because Caribbean airlines
    management ineffectively integrated Air Jamaicas culture into Caribbean
    Airlines therefore cultural fit also an issue.
    Caribbean Airlines has a culture of raising customer satisfaction by
    providing

    excellent

    service,

    treating

    employees

    with

    respect,

    increasing

    employee productivity as mentioned in the SWOT analysis. However Air Jamaica


    has a culture of being trust worthy reliable and being integrated with the
    Caribbean hospitality.
    Caribbean Airlines has a Power Style culture and they adapt to changes that
    occur in the environment so because of heavy competition Caribbean Airlines
    reacted by acquiring Air Jamaica. However the lack of cultural ft impacted the
    customer satisfaction of Air Jamaican customers who were not satisfied with the
    new service offered by Caribbean Airlines after the acquisition which affected
    Company brand image.

    Overall Caribbean Airlines is the market leader in the Caribbean region and
    dominates the market although they are experiencing financial difficulties.
    Caribbean Airlines utilizes the focus differentiation strategy by focusing on their
    two distinct buyers mentioned in the Porters five forces. The company maintains
    and enhances long term customer loyalty by tailoring to, offering what their
    target group wants and providing unique services and options for customers in
    each seating class.

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