Strategic Management Airline Of Singapore -Myassignmenthelp.Com

Question: Discuss About The Strategic Management Airline Of Singapore? Answer: Introduction This report focuses on the management analysis of a Singapore listed company. For the discussion, Singapore Airlines is selected in this report. Singapore Airlines is the most famous and quality carrier in Singapore. Along with this, it is the subsidiary of Singapore government. The airline has its operations in all over the world and provides carrier services in more than 45 countries along with 94 destinations across the world. Singapore airlines are publicly listed in Singapore stock exchange and now it is considered as one of the largest airline in term of market capitalization. Airline has 102 aircrafts that are operating in various countries (Singapore Airline, 2018). Presently, the airline has its strong presence in South west pacific, East Asia, West Asia, Africa and America. Percentage of geographic segment of Singapore Airline in various countries is represented in the graph. Nature of the business Singapore Airlines has positioned itself as the affordable carrier in the country. The airline has connected itself from more than 20 airports which are located in 18 countries. These countries are Australia, Europe, various parts of Middle East and various destinations of Southeast and North Asia. In terms of services, Singapore Airline provides wide range of meals to the economy class passengers, various drinks along with the headphone sets that are important for the business class passengers. The management of Singapore Airline focuses on the differentiation strategy in order to enhance the services for the passengers. Along with this, Singapore Airline has introduced new schools in order to educate and train the staff in various areas like flight functions, cabin crew, business-related operations, information technology, airport services, safety measures and development of service culture (Singapore Airline, 2018). PESTEL analysis According to Chernev (2012), PESTEL analysis is the framework by which the organizations can analyze and evaluate the macro factors of environment in which the organization is operating. This analysis is helpful in the identification of all the threats as well as weaknesses of the business operations that can be turned into opportunities. PESTEL analysis of Singapore Airlines is as follows: The political factors affect the business operations of Singapore Airline in various countries. There are various government regulations and policies that affect the economy of that particular country. Singapore Airline is operating in various countries and it is crucial that the political systems of various countries should support the airline. But it is well known that national airlines get maximum support from the government. In such situation, it is critical for the airline to make its significant presence in different nations. Along with this, in the home country, it is very crucial for the airline to get full support from the government otherwise it will not be able to achieve the business goals and objectives (Terpstra, Foley Sarathy, 2011). As it is well known that Singapore Airline is operating in various countries as the airline is affected by variations in the national and global economy. Further, another economic factor which impact on the airline operations is the increase of fuel prices. For instance, there is the political instability in the Middle East and that has resulted the changes in the fuel prices. That has direct impact on the fuel cost of airline. Social norms and customs also have significant impact on the airline company. The social factors like changed preferences of the customers have impact on the business operations of Singapore Airlines. So, airline has to focus on the changing trends and requirements of the consumers so that more customer centric services can be provided to them. Along with this, the disposable income of the customers also impact on their purchasing power. The technological factors includes the achievement of fuel efficiency in order operate the business effectively. The engineering and technical department of Singapore Airline focuses on the maintenance and repairs the carriers for the effective business operations. Singapore Airline is also famous as the first flight that has established productivity suite so that passengers can be served who need to work without charging their laptops. The company also uses a micro system in order to charge productivity suite in the airplanes (Delbari, Ng, Aziz Ho, 2016). Based on the analysis of the environmental factors, it is observed that Singapore Airline is social responsible and takes important steps for reducing the carbon footprints from the environment. Along with this, various environmental factors like weather as well as season impact the operations of the flights. So, Singapore Airline makes use of greener aircrafts to carry out the sustainable operations (Dahlstrom, 2011). The legal and regulatory changes impact on the business of Singapore Airlines in different countries. In China, the regulations of aviation enhance the operations of private airlines in the aviation industry. Along with this, there are different investment limitations imposed by the governments of various countries. Airline has to follow various rules i.e. Consumer law, Fair Trading law, natural environmental law etc (Lovelock, 2011). Porters five forces analysis This is an important framework that critically evaluates the degree or level of competition in a specific industry. This framework is helpful in the strategy development of the business. So, Porters five forces model is effective in identifying the impact of various factors on the business operations. The five forces analysis of Singapore Airline is discussed below. Competitive rivalry- Singapore Airline in the aviation industry has to face intense rivalry as there is the availability of full service airlines in the market. Along with this, there are the price variations that enhance the competition among the airline companies. So, it is understood by the analysis that there is moderate intensity of the rivalry in the market of Singapore Airline. There is high intense rivalry within the airline industry and it depends upon a route-by-route. In order to capture the market in various countries airlines are using price-cutting strategies along with high quality services. With the growth in the airline industry, the rivalry in the Singapore Airline is strong. The reason of the intense rivalry is the presence of budget airlines companies that are able to compete with the Singapore Airlines in terms of prices. Along with this, low switching cost of the customers is also a reason for the customers to switch to the competitors of Singapore Airline. So, the industry rivalry for the Singapore Airline is very strong (Winer Dhar, 2011). New entrants- The threat of potential new entrants in the aviation industry is comparatively weak. The reason is that there is the requirement of vast amount of money. Further, the airline market is highly saturated. It is difficult for other airlines to enter in the market due to various economic factors. There is also a challenge for Singapore Airlines in obtaining airport slots as there is only one airport. Along with this, high charge of operations and various political factors create barriers for the entry of new airline companies (Fifield, 2012). Airline industry is perceived as highly capital involved and that creates entry barriers for the new companies. After the money factor, getting license and approval from different government department is also a challenge for new airline companies. So, the threat of new entry is low in the aviation industry. Threats of substitute- The threats of substitute are a crucial factor in the five forces analysis. In case of Singapore Airline, the threat of substitute is modest as there are various low cost airline companies working in the aviation industry. Along with this, there are high speed railway services that create threats for Singapore Airline. Apart from this, there are advanced communication technologies that also create the threats of substitutions for the flight services of Singapore Airline. Bargaining power of suppliers- In case of airline industry, the bargaining power of the suppliers is very high which is unusual as compared to other industries. The bargaining power of the suppliers in the Singapore Airline is very strong. The uncontrolled cost of fuel enhances the power of the suppliers. For Singapore Airlines, Boeing and Airbus are the key suppliers and these two aircraft manufacturing companies are dominating the aircraft market. Both the companies are similar and both are seeking to gain large number of orders from the airline companies in order to maintain their market shares (Shaw, 2011). Bargaining power of buyers- The bargaining power of the buyers in Singapore Airline is moderate due to the cost of switching. The management of Singapore Airline has implemented various loyalty and reward programs in order to enhance the customer loyalty and retain the existing customers. Apart from this, due to the availability of the internet, customers are able to compare the prices of the various airlines. They are also able to choose the airlines based on their requirements (Martnez, 2012). Management recommendations The analysis of business operations of Singapore Airlines is helpful in collecting relevant information to frame different strategic options for the company. There are some recommendations for Singapore Airlines for the better business operations in the market. Developing new strategies- The Singapore Airline has to maintain its competitive position over the other airlines. Airline has to deal with the fluctuations of international economy. Along with this, company has to deal with various strategies implemented by the competitors. so, airline should study various strategies adopted by the competitors liken Virgin Airlines, Cathay Pacific and British Airlines in order to stay competitive in the market. Further, airline should develop new strategies after analyzing the strengths and weaknesses of the competitors. By doing this, organization will be able to get more opportunities for the investments. Implementation of new strategies will be helpful for the organization to provide the quality services to the travelers (Paliwoda, Andrews Chen, 2012). Improving communication system- Singapore Airline should differentiate itself by the use of innovative marketing tactics. Airline can differentiate itself in a better way by enhancing the communication channels used by the airline. Organization should use new communication features to its business class facilities. Along with this, organization should provide facility to the customers to connect their laptops. Latest electronics technology should be included by the airline so that the satisfaction level of the customers can be enhanced. It basically means that Singapore airlines should improve the communication systems with better technology, movies and access of latest music etc (Shah, Jamil, Shah Kazmi, 2015). Market penetration- The organization of Singapore Airlines should focus on the penetration of new markets. This airline has its business processes in various countries so; the company should also focus on the introduction of family packages including all its services. The management of airline should also focus on the corporation with other companies that can provide various facilities like accommodation and food (Kotler Keller, 2012). Niche market- Singapore Airline should focus on the use of airbuses that can be used as the banquet halls. This space will have the capability to hold around 150 to 250 passengers. This will be helpful for airline to target niche market and customers who want to conduct the conferences in the flights. This is an inventive idea that can save time and capital of the travelers (Turnbull Valla, 2013). Conclusion This above discussion presents the analysis of external business environment of Singapore Airlines in terms of understanding the impact of various factors on the business operations of airline. Based on the above analysis, it is observed that Singapore airline is operating in various countries and it has to follow various rules and regulations imposed by the governments of the countries. This study is helpful in acquiring a deep insight into various political, economic, social, technological, legal and environmental factors that impact on various functions of the airline. Further, Porters five forces analysis is effective in understanding the level of competition in the market of airline industry. At last, the report provides some strategic recommendations for Singapore Airline in order to grow in various countries. References Dahlstrom, R. (2011). Green marketing management. Mason, Ohio: South-Western / Cengage Learning Delbari, S. A., Ng, S. I., Aziz, Y. A., Ho, J. A. (2016). An investigation of key competitiveness indicators and drivers of full-service airlines using Delphi and AHP techniques: Journal of Air Transport Management. 52. 23-34. Fifield, P., (2012). Marketing strategy. (2nd edition). Berlin: Reed educational publishing Pvt Ltd Kotler, P. Keller, K., (2012). Marketing management. Upper Saddle River, N.J.: Prentice Hall. 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