\

Final Report: Singapore International Airlines

Introduction4

Discussion5

Macro Environment5

Institutional Factors7

Social7

Technology7

Environmental8

Economic8

Political Factors9

Porter Five Forces Model9

Competitive Rivalry9

Substitutes10

Buyers Power10

Suppliers Power11

New Entrants Threat11

Business Model and Strategy13

New Competitive Challenges Confronting Singapore Airlines14

Resources and Capabilities of SIA15

SWOT Analysis16

Effectiveness of Corporate Strategy17

Recommendations18

Conclusion20

Bibliography21

Appendix23

Appendix A23

Final Report: Singapore International Airlines

Introduction

Singapore Airlines Limited is the national airline of Singapore and emerged in 1972, and has operations in countries across the globe. Singapore Airlines Limited has a good reputation in the airline industry for its safety and innovation, along with profitability regardless volatile and increasing fuel costs, increased market competition, heightened security issues, and stress in global financial markets. SIA has developed from domestic airline into the leading carriers of the world and as the “Airbus A380” super jumbo first operational customers. It administers its domestic flights with its completely owned subsidiary, such as SilkAir and has a say in the low cost market of the airline by Tiger Airways. SIA also has Singapore Airlines Cargo that is a dedicated freighter fleet and related businesses. The airline has well-trained and young employees and emphasis on service excellence and a top ranked Singaporean hub to offer services to their widespread international network. SIA has built a sustainable competitive edge over other rivals by employing strategies that offer differentiation depended on better customer service, both on the ground and in-flight. This assignment offers a review of Singapore Airlines Limited and its macro-environment and industry environment, as well as identifies a range of resources and capabilities available to SIA. This paper also highlights trends and issues that have an effect on SIA and offers recommendations have been given, as a solution.

Discussion

Macro Environment

The macro environment refers to the broader context where the airline/market industry operates. Since, SIA has global operation, which involves more risk and complexity. PESTEL analysis (below table) is used as a technique to scan the environment and it offer a general macro environmental forces awareness, this permits SIA to plan better, envisage change and decide where to make investment, diversify or reallocate its resources. It is worth noted that the macro environment refers where SIA has the least control and influence over; however, the dynamics emerging from the institutional/macro environment may have drastically impact on SIA. Increased costs of fuel and airline industry deregulation bring into play new entrances in the increasing finances of airline market are two key trends that have a significant influence on the current market players. Furthermore, the domestic market of Singapore airline was essentially nonexistent because of Singapore being a small country in terms of geography but has to directly pursue a global presence and began planning about resources of airport, flight routes and acceptance of government into foreign locations.



PESTEL

Reasons/Characteristics for their significance

Political

Political environment is more unstable when operations penetrate global markets determine competitiveness based on regulations in place. For example, airline industry deregulation has facilitated other market players to penetrate the industry with low entrance barriers.

Economic

Economic wellbeing of nations depicts feasibility of business operations significance of tax legislation, tariffs and exchange ...