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 company’s 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 firm’s 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 firm’s 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 company’s 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 didn’t occur. There were also problems

of cultural fit because Caribbean airlines management ineffectively integrated Air Jamaica’s culture

into Caribbean Airline’s 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.