Step Six: Identify and Assess Risks
There are always risks involved in entering into partnerships and alliances with otherairlines or industry rivals. These include; breach of contracts or agreements, losing customerbase because of dissatisfaction with partner or due to change in customer preferences, and lowperformance against forecasted deliverables. Such risks can consequentially be devastating toClassic Airlines’ profitability as will lead to rising inconveniences to customers. However, theserisks are low probability. Ways to mitigate these risks include; ensuring clear contract deals,building strong relationships with customers, improve communication to clarify ambiguitiesbefore negotiating alliances, foster appealing reward programs.The risks associated with expanding and integrating CRM system range from highoperating cost, misalignment of goal, and unclear control measures. These can be mediumpossibilities and inevitable. To mitigate Classic Airlines will need to assign competent teams tohandle the project to achieve desired performance. Resistance to the new approach can beexpected. However, the company will need to restructure the organizational culture to pave wayforward for positive environment within the company. Revamping rewards program may notinvolve high risk other than the initial cost to bring back initiate the programs or to reestablishfew that have been faced-out. Researching and market segmentation can bring an added value toClassic Airlines’ processes.