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Re: e_to_the_t post# 1271

Tuesday, 03/22/2005 12:16:16 AM

Tuesday, March 22, 2005 12:16:16 AM

Post# of 3059
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VIVA International, Inc. – SWOT Analysis



A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm can be classified as Strengths (S) or Weaknesses (W), and those external to the firm can be classified as Opportunities (O) or Threats (T). Such an analysis of the strategic environment is referred to as a SWOT Analysis.



The SWOT analysis provides information that is helpful in matching a firm’s resources and capabilities to the competitive environment in which it operates. Zooming$tocks.com utilizes the SWOT to create a snapshot of a company’s overall environment to assist subscribers/investors in making wise investment decisions about a company.



VIVA International Incorporated

STRENGTHS
WEAKNESSES

· Senior Management is experienced in the airline industry, business and finance

· Has four major subsidiaries in the air industry that enable them to begin air operations immediately

· Relatively untapped “niche” market in a highly traveled tourist area

· Prepared to meet the demand for European travelers as well as U.S. travelers

· Ability to increase the fleet with the demand

· Pricing is a differentiation point

· Increase in net asset value through acquisition of airplanes and airlines

· Favorable access through the Department of Tourism and Hotel Associations
· Possibility for high cost structure (will need to be managed)

· Potential for undercapitalization in growth strategy (offset by quick profitability)

· Little market presence and reputation

· Dependent on third parties to assist in tickets sales, ground operations, flight crew, personnel and reservations system







OPPORTUNITIES
THREATS

· Great entry price for its stock

· Operate routes between islands in the Caribé where no airlines have previously ventured

· Strategic alliances with partner airlines in the Caribé

· Strong Growth over the next 3 years
· A few direct competitors exist operating from U.S. Hubs

· Emergence of competition or alternate routes

· Changes in economic trade and access to airspace

· New regulations outside the US




Overall Assessment: Zooming$tocks.com sees the tremendous upside potential for Viva International through this analysis. The company can establish a presence and reputation quickly and effectively as air operations begin and the service, quality and low-price values are established and become known. The company plans an aggressive marketing strategy aimed at achieving name recognition within a short span of time.



The downside is minimal, and depends on management’s ability to sustain demand by acquiring additional aircraft, airlines and establishing additional partnerships throughout the islands. Management will also have to manage third party dependencies, which are always a challenge but can be controlled through vigilance and good leadership.

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