STRATEGY ANALYSIS

Analyzing Strategy of Singapore international airlines

Analyzing Strategy of Singapore international airlines

Strategic diamond analysis of Singapore international airlines

Arenas

SIA is one Airline that have managed to strengthen its market position by overcome severe challenges, stiff competition, and other problems primarily because company is focus and determinant of providing quality service to its customers.

The organizational structure of Singapore international airline is very simple which comprises of limited hierarchy as it enable the concept of sovereignty and formulate a elastic and self-motivated business environment which give power to employees of all level to take vital decision for the betterment of the company.

SIA has instructed its employees to preserve the culture of teamwork, healthy environment, and multicultural workforce (Brueckner & Pai, 2009, pp. 110-120).

SIA distribution network is primarily managed by its travel agents and internet bookings; moreover, company has able made great position in search engine, for example, when searched by customer using the keywords “Singapore airline and Singapore air ticket” the company name appear first on the list.

The fleet of SIA is very young as compare to the normal age of employees working in fleet department; in addition, they are highly qualified and motivated. Companies ability of implementing new tools and technology gives it value added advantage over its competitors.

Vehicles

Singapore international airlines have gained the prevailing success and market share because of internal development of the past.

Initially company tried to attract potential customer through research and development but after penetrating in the market company started attracting its customer through word of mouth and quality services.

Differentiation

SIA is known for continuous differentiation in in-flight services, for instances, frequent implementation of new electronic gadgets that enhances the comfort level of business class traveler.

Moreover, company is known for selling its tickets at higher price than market but is still able to gain good response from its potential customers because it is striving hard to satisfy the needs and desires of customers.

Fleet management of SIA is different from other airlines companies and this has enabled them to introduce different modes of technologies for the maintenance of aircrafts and its operations (Chong, 2007, pp. 201-212).

SIA provides complete guarantee of in-flight entertainment and reliability of its services to its potential customers.

Staging

SIA since its incorporation has expended its market share both in national and international market at a stagnant pace.

SIA has able to take complete initiatives of new technologies, opportunities, and customer preferences.

SIA has increased the price of its tickets because it ensure customer of guarantee pack in-flight services and high quality comfort.

SIA despite of charging high prices than market was able to obtain comprehensive revenue mainly because of strong leadership, excellent business sense, and determination of not comprising on the quality of the services.

Porter's Five Forces Model

Degree of Rivalry—High

The position of SIA is very strong in national and international market, however, as discussed in case the company is facing stiff competition from airlines companies of the globe.

Very few national airlines are in direct competition with the SIA but the level of competition is not that high because ...