Market analysis of airline company Singapore Airlines PDF

Preview

Summary

Download Market analysis of airline company Singapore Airlines PDF

Description

9/14/2019

Market analysis of airline company SINGAPORE AIRLINES

/ Essays / Marketing

Disclaimer: This work has been submitted by a student. This is not an example of the work produced Any opinions, findings, conclusions or recommendations expressed in this material are those of the a Singapore Airlines is known as a global and respected Airline Company with safe journey, innovative te developing dramatically to become a giant in global airline industry with more than $12 billion in reven around the world (www.singaporeair.com, 2011). Today, Singapore Airlines and its subsidiaries have the and 6 Airbus A319s, SIA Cargo has 11 B747-400 freighters. As target on high income and business customers by providing unprecedented flying experience, Singa entertainment service (Kotler, 2009) and launching that latest modernized aircraft. Firstly, SIA always im expanding globally strategy, in 2004, Singapore Airlines was the first to launch the world’s longest noncommercial plane A380. Secondly, to fortify its position as the premier Asian Airline, Singapore Airlines internationally renowned chefs and the world’s most discerning wine consultants. Besides, with various created its own standard for premier airlines market. As one of step to build up reputation, in 1973, “Singapore Girl” with the uniform of sarong kebaya was culture that SIA always tries to dedicate into customers. On the other hand, there would be a lot of unpredictable events which could affect negatively on Airlin bloomed have decreased the passengers’ revenues of Singapore Airlines. As the result, understanding t order to maintain its position in airline industry as the best of the best Airline in the world in terms of s

2. Macro-environment analysis By employing PESTEL model, all external elements which have been directly affecting a company will be the business (Aaker, 2005). Specially, in the airline industry, analyzing the following external factors in to well as to set up the suitable strategies for their long-term successful business.

2.1. Political- legal factors As pursuing to develop globally, Singapore Airlines has to consider political factors in Singapore marke strategy and decisions. Fortunately, Singapore Airlines receives tremendous support from the Singapore Government in terms more advantages than their competitors in terms of profit as the general tax for firms in Singapore is m while British Airway as well as Japan Airlines has to pay 30% corporation tax in England and Japan, resp Additionally, aviation government regulations must be taken into consideration when Singapore Airline political barrier in India. In 2005, Singapore Airlines was very difficult to be approved by Australian Gov In airline industry, the term airlines freedom refers to the airspace of each country which allows for whe trades meeting. Today, skies policies are opening and continuing to be deregulated which create more to maintain their business in Singapore.

9/14/2019

Market analysis of airline company SINGAPORE AIRLINES

Nowadays, along with the high travel demand, people have more choices among airline firms when the expecting more and more what they will receive in their journeys. For example, the different culture req Also, Singapore Airlines has to maintain their standards to build up higher company image as “Singapo Specially, one of the most concerns for Singapore Airlines is customer’s fear of travel due to terrorism, 82 people and wounds of 81 passengers after a fatal crash at Taipei International Airport. Moreover, SA overseas. Recognizing customers’ attitudes are very important; Singapore Airlines changed all engine m To ensure their mission, they have been caring their staff in terms of social customs by structuring their customers’ social norms and values, Singapore Airlines is continuously expanding their business global

2.4. Technological factors Continuing apply advanced technologies allow Singapore Airlines always is the pioneer in Airline indus Singapore Airline to develop and apply in terms of safety and service standard. Otherwise, they will lose In fact, Singapore Airlines was the first airline introducing the largest commercial plane A380 in 2007. A working on the air without power up their laptops. Moreover, providing the world’s wildest first and Bu Singapore Airlines. Besides, in terms of service and safety, Singapore Airlines was ranked at number one in 2008 (traveltrut as developed their ground services, which bring the unique experiences for customers flying with Singa

2.5. Environmental factors Airline industry has been run under pressure of saving environment by decreasing air pollution, noise a maintained their successful position in the market as well as provided their long-term benefits to custo Despite concerns about financial issues, Singapore Airlines is planning to spend $1.5 trillion on new airc committing to continue this reduction by 50% in 2050. Moreover, by using efficient fuel, replacing old technologies, Singapore Airlines is continuing their successful business along with benefits for commun

3. Key opportunities and threats Analyzing macro-environmental factors is critical for Singapore Airlines to watch out the opportunities

3.1. Opportunities With the reputation and strong brand image, there is a chance for Singapore Airlines expanding its bus growth by 6.4% in 2014 (Data monitor, 2009) creates a great opportunity for Singapore Airlines and air by 16.7% and 16.4% respectively, where is a chance for Singapore Airlines gaining more market share i rise by 4% in the next five years. Another opportunity for Singapore Airlines comes from an emerging Asian market and the developme center of Asia, the Singaporean airlines industry is forecast to have a volume of 24.7 million passengers Asian market where they serve directly to many destinations. Therefore, they are estimated to increase Furthermore, entering low cost airline market by occupying some budget airlines, for example, acquirin market segments as a good opportunity, Singapore Airlines also made Silk Air targeting on fascinating

9/14/2019

Market analysis of airline company SINGAPORE AIRLINES

Economic un-stability in other countries impact on Singapore Airlines’ profitability. Besides, internation their business. Some geopolitical adversities and other risks will be happened, such as politic crisis in A passengers’ revenues.

4. Competitive environment analysis 4.1. The main competitors for Singapore Airlines By pursuing to expand business globally, Singapore Airlines has to compete with many airline firms aro competitors of Singapore Airlines. 4.1.1. Cathay Pacific Airways (CPA) Cathay Pacific Airways is the second Top-Performing airline company, which is following SIA. Nowadays As strong global alliances, member of the One World Global Airline Alliance can bring a large number o in terms of providing services. Moreover, having the global extensive network with 92 destinations arou 4.1.2. Japan Airlines System Corporation (JAL) Competing directly in Asian market, JAL and SIA are the main leaders and have totally 40% of the mark Tokyo. JAL Group has a good global business presence of airline companies in traveling. Because JAL Group ha offer more services for their customers. Also it can get different business interests. 4.1.3. Budget Airlines firms The growing of Air Asia, Jetstar Airways, and Virgin Blue in Australia is bringing a major problem for Sin cost airlines are a phenomenon among air travelers, where they can travel overseas with small amount might lose their competitive advantages.

4.2. Five forces analysis The Porter five forces model is used to identify factors which forces affect company’s ability to serve cu (Porter, 1998), and the stronger each force, the higher competitive industry and the lower the rate of re 4.2.1. Industry rivalry (High) Even through the growth in airline industry, the rivalry in Singapore airline market is strong. The strong Singapore Airlines on price. Additionally, the low switching cost for customers lead customers to chang America, Europe reducing price, which also intensify competition for Singapore Airlines. Moreover, airline firms have to face to high “storage costs” caused by unsold seats on a flight while the comes from passenger, for example, passenger services contributed 68% of revenue to Singapore Airlin Airlines in competitive airline market. 4.2.2. Potential of new entrants (Low) In the airline circumstance even through the liberalization sky is opened in 2010, there is still a weak lik operating requires a lot such as to obtain planes, distribution systems, capitals and airport “slots” for la

9/14/2019

Market analysis of airline company SINGAPORE AIRLINES

The supplier power is strong among airline industry as the relying on aircraft suppliers where Boeing an theirs aircraft suppliers. Nowadays, A380 and Boeing 747, 777 with advanced technologies allowing no way for airline firms to manage the strong power of suppliers. Another reason strengthening supplier power is the relying on fuels. As the report in 2010, fuel costs ac lack of supplier diversity, the power of supplier tends to be strong continuously.

5. Core competencies Having strong capabilities and core competencies, Singapore Airlines is outperforming among other co strategy such as management strategy by communicating and motivating employees to build up Singa improve Singapore Airlines as wholly its excellent services and valuing network where Singapore Airline standard services in high price sensitive market. Besides, rigorous service design and development, tota strategic synergies through related diversification and world-class infrastructure are continuous buildin Another core competency of Singapore Airlines is its unique brand which consists of its name “first in fl industry. For example, they first introduced hot meals, free alcoholic and non-alcoholic beverages, and Singapore Airlines keeps driving innovation as an important part of its unique brand. Also, its employee which immediately linked to its unique brand (Chan, 2000).

6. Conclusion Despite entering lately in airline industry, Singapore Airlines have built up its successful business by und giant firm, Singapore Airlines should continuously consider and determine competitive environments to Airline to sustain its focus on achieving cost-effective service excellence and improving its unique brand

/ Essays / Marketing...