Singapore Airlines

Table of Contents

Executive Summary        3

Introduction        3

Background of the Company        3

Internal Analysis        7

Strengths        8

Branding:        8

Quality of service:        8

Threats        9

Analysis of SWOT        10

Strategic Evaluation        11

Recommendations        12

Conclusion        14

References        14

Appendices        15

Executive Summary

This report focuses on Singapore Airlines. For Singapore Airlines external analysis, we use the PESTLE framework and VIRO analysis model, which can help us easily to understand the competitiveness of Singapore Airlines, understand the industry environment and macro environment, and thus see the impact of the organization’s core competence on Singapore Airlines. For Singapore Airlines internal analysis, we can further understand Singapore Airlines strategic capabilities and core competencies. Strategic direction and strategic objectives will ensure Singapore Airlines will have a good future in the future and there is a trend.

Introduction

First, we start with an external analysis to understand the impact of the macro environment on Singapore Airlines. Second, we use PESTLE framework and VIRO analysis model to analyse the competitiveness of Singapore Airlines and understand the linkages between competitiveness and the macro environment. In the internal environment analysis, we use VIRO to identify the company's resources, strategic capabilities and the company's competitive advantage. Afterwards, the strategic direction and strategic objectives of Singapore Airlines are analysed to identify the patterns of the organization’s activities and process. Finally, through an in-depth understanding of Singapore Airlines, assessing the company's current and future, this report will evaluate the industry environment, identify resources and capabilities in sustaining competitive advantage facing it in the globalized marketplace.

Background of the Company

 Singapore Airlines is the national carrier of Singapore, which has an international business and it is focus on the Asian and Australasian markets. Singapore Airlines was founded in 1972, the airlines have grown the past forty year to become one of the largest and most successful airlines in the world, which with an expansive and relatively young fleet of planes. Nowadays, Singapore Airlines has established a singular holding company to contain its Scoot (TZ, Singapore Changi) and Tigerair (TR, Singapore Changi) budget subsidiaries. Scoot specializes in long-haul budget flights throughout South East Asia, China, India, the Gulf, and Australia.Tiger specializes in short-haul regional flights to forty-two destinations  https://www.ch-aviation.com/portal/news/46396-singapore-airlines-consolidates-scoot-tigerair-ownership

3. External Analysis

3.1Macro Environment Analysis

 PESTLE framework is used to understand the political environment, economic, technological, social-culture and so on can help the carrier to develop their own strategies, improve their strategic management and forces affecting an industry and its incumbent organizations.

• Political Environment

 Singapore has a stable political and it provide a good environment to improve the scale of company. The government will give a great deal of support to these company. In recent years, Singapore government have allowed freedom in corporate governance and have set little restriction to the industry.

• Economic

According to the oil price, the carrier has to employ non-monetary method. The distance of the destination determines the ticket fare. For example: the customers fly to a shorter distance, the fly tickets are cheaper and if the customers fly to a longer-distance, the fly tickets are more expansive and if the customers buy the tickets earlier the price will cheaper. This can attract customers and also let the company save the oil and improve the economic efficiency.

• Social-Culture

 Singapore is an immigrant country and have a lot of culture. The population consist of more than 75% Chinese, follow by Malay and Indian; main religion is Buddhism, Islam, Christian, Taoism and Hinduism. So the company can be developing the market of these place more, in order to rise more customer and the market share.

• Technological

  No matter in which industry, technology has become the most important part as the customer. For example, Malaysia Airlines flight accident makes people feel unsafe for the plane and fewer and fewer customers choose this airline. Singapore airlines has the latest technology and reputation. Nowadays, internet all around us but the smartphones, Ipad, all kind of these intelligence product cannot have used on the aircraft.  For example, the customers can use the internet on the aircraft if they choose the Singapore airlines.

3.2Industry Analysis

In this analysis, the industry competitive advantage and market attractiveness is the most important part. The Porter's five-force model use in this analysis can perform it very well. These five factors are: “Threats of potential new entrants”, “Bargaining power of customers”, “Bargaining power of suppliers”, “Threats of substitutes service” and “Threats of competitive rivalry within the industry” (Porter, 20O7). If these five factors change as long as any one factor, the company should re-adjust the strategy.

•    Threats of potential new entrants

  For the long-distance passenger air business, new entrants to Singapore Airlines threat is weak. Long-haul air travel is a fairly saturated industry, but Singapore Airlines has received the strong support from the national’s government like pecuniary or otherwise. This means that traffic growth generally comes from the growth of national airlines, rather than new competitors entering the market. For the short-haul flight, Singapore Airlines operates the Scoot and Tiger Air to recoup the short-haul business is a good example. It would be safe to assume that the treat of new entrants are remains low at the moment. (Lin, 2015)