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Strategic Review

Table of content: Summary Introduction I. Background of Singapore Airlines II. Strategy 1. What is Strategy? 2. The nature of Singapore Airlines Global Strategy 3. Mission and value of SIA III. Strategic analysis of the organization and its environment 1. PEST analysis 2. Strategic Capabilities 3. Strategic SWOT analysis IV. Future strategic aspects for SIA 1. Recommendation 2. Conclusion References Summary:

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In this report I examine the history of Singapore Airlines’ the report will then including the corporate strategy, strategic choice and analysis of the company’s external environment political, economic, social and technical environment (PEST analysis), strategic capabilities and the strength, weaknesses, opportunities and threats (SWOT analysis). I will discuss the future strategic aspects from Singapore Airlines (SIA) and make some recommendations how SIA going to be improved. Introduction: Selecting a strategy is different from developing a strategic plan. The point is any single strategy might deliver the basis for a wide change of plans.

Locating and evolving strategic goals to achieve them are the next step in improvement. I selected Singapore Airlines where its target markets is mainly in Australia, New Zealand, Indonesia, the Philippine’s and Singapore. Singapore Airlines’ trademark has been very powerful for the airline industry from the start. It exists as one of the top brand cases from Asia for other recognized brands as well as any seeking brands. It is a unique brand in the opinion that the meeting takes dedicated control of the brand strategy dissimilar as many other Asian companies. I.

Background of Singapore Airlines: A combined offer between Singapore and Malaysian Airlines began in 1947. However, in 1965 Singapore disconnected from Malaysia, to moving this two the governments decided to establish separate airlines. In 1972 SIA was born. Singapore Airlines was in a difficult position than most other airlines at this period; as there were no domestic routes to fly, it was pushed to start competing directly with international airlines for routes, access to airports, securing flight slots and landing rights, and developing a new customer bases.

In contrast to most state-owned objects, Singapore Airlines faced competition from the beginning; this tough start shaped a powerful organization and also a commitment to branding, particularly in the boardroom. II. Strategy: 1. What is Strategy? “The planning of a desirable future and the design and testing of suitable ways of bringing it about… “ ( Tribe, 2010, p. 5. ) 2. Examples of Strategy within Singapore Airlines: Singapore Airline’s winning strategy is the result is an airline that built customer loyalty and a solid business. Berinato, 2008). SIA is placed as a premium carrier with high levels of improvements and first-rate levels of service and has made a strategic choice of providing precedence to effectiveness in excess of size. As a part of its international strategy in 2000 SIA joined one of the 3 major airline alliances, which is Star Alliance. However, numerous divisions of the SIA Group have been operating in China and India forming strategic alliances amongst local organizations. 3. Mission and value: SIA’s emphasis on service is strong.

The mission statement and core values state without uncertainty that providing a quality service to customers is an important objective and aspiration of the airline. Problems or queries are dealt with effectively in order to achieve excellent customer service. III. Strategic analysis of the organization and its environment 1. The Pest analysis for Singapore Airlines: Singapore Airlines growing from a regional airline to one of the most valued travel brands around the world SIA has to think about their environment and it’s possibilities and risks.

I am going to analyze their political, economical, technical, social and cultural environmental factors in order to get closer with the fast moving world. Political Environment: The political view has an enormous effect on the power of businesses, and the cost effect of consumers and other trades, such as change of government, tax as relocation, conversation and economic growth. The politics has become more secure between the nations around the globe. This Secures the Airlines business and gives the Airline industry a possibility to enter a new market.

On the other hand, this will growth substantially the competition that the control will lose the advantage, Singapore Airlines (SIA) can no longer be the only airline in Singapore. A political barrier for Singapore Airlines would be its proposal for a investment in Air India, dealing in demanding setback to the Indian government’s privatization. Also there may be some potential that the 11th of September terrorist attack may shape a huger will to liberalize the industry, particularly as a large market companies have an important influence and chance in a deregulated nature.

Economic Environment: Businesses need to reflect the state-run of a dealing economy in the short and long-terms for example: interest rates, inflation, unemployment, outlook for the economic Gross Domestic Product (GDP), or lack of investment. This is especially real when scheduling for global marketing. The event from the 11th of September has influenced the flight security in the view of the customers. Each environmental problem together with the impact of increase of fuel this has an impact of the basic prices of flights or in generally of customers to book a flight.

Social and cultural Environment: The social and cultural powers on a corporation vary from country to country. This is extremely vital that such factors are measured. That can be cultural differences, demographic trends or consumer trends (volunteering, short break). Customer’s requests, to manage to fly of being a flight attendant, status and so onward of all impact the way an airline is observed. Also, events like the terrorist attacks of September 2001, or the crash of a Singapore Airlines flight at Taipei’s International Airport in Taiwan 2002, significantly the influence of the industry.

Those results make it understandable why the worldwide industry to customer position changes. The requirements for employees in distant countries will enlarge the demand for foreign language training. Technical Environment: Technology is fundamental for good benefit, and is a main deliver of globalization such as: business efficiency, transportation, increases the contact with other consumer social networking. SIA makes a competitive benefit, moreover to providing the world’s varied first and business class seats.

Between all major air carriers SIA still continues the newest fleet of aircraft, and stores to the strict policy of changing older aircrafts for newer, better models. They have permanently been first in line to take delivery of the latest aircraft types such as Boing 747 jumbo jets, or Boing 777. Graphic 1 shows the Pest framework for SIA: Graphic 1 2. Strategic Capabilities: Strategic Capabilities classifies the capacity of a business to distribute future value to his end consumer. SIA’s lookout is to keep their regulars with a truthfully experience.

Passengers expect a lot when it comes to good services, flight schedules, seat comfort and technical skills such as security the truth is they struggle to be best in class with onboard entertainment revolution. The company maintains powerful innovation as a significant part of the brand, and the cabin environment and experience are main influences of their success. In order to provide the best capabilities SIA want to offer always the best in flight-service, the best food, and the best service on the ground floor.

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