STRATEGIC MANAGEMENT FOR SINGAPORE AIRLINES

Strategic Management For Singapore Airlines

Table of content

1. Introduction1

2. Strategic Analysis1

Background2

Potentials3

Steep Analysis3

Industry analysis & implication5

Customer analysis8

Competitor analysis9

Key success factors (Implementation Plan)11

3. Sustainable competitive advantage14

4. Strategy identification15

5. Conclusion19

strategic management for Singapore Airlines

1. Introduction

Singapore Airlines (hereafter known as SIA) has built a storied reputation for excellence in customer service, attention to detail and a progressive stance in designing strategy. It has established a well-orchestrated system that nurtures significant sources of competitive advantage that are used to support a strategy of differentiation. Currently, the single biggest challenge facing SIA is that of continuing to differentiate itself amongst its competitors. This translates into the question of how to maintain its place as the world's best airline as well as the most profitable? Having garnered a host of accolades for its outstanding level of service, whether or not SIA can hold on to its enviable position remains to be seen. While SIA has one of the most modern fleets in the industry, its service levels are likely to be imitated by other airlines.

2. Strategic Analysis

With the growing competition in the industry, SIA needs to consider options in order to not only protect its penetrated market from competitive erosion, but also to expand it where possible. A major weapon supporting SIA is the fact that the company is an industry leader in the use of technology as a competitive tool (Harmon, 2003).

Background

Singapore Airlines began with the incorporation of Malayan Airlines (MAL) on 12 October 1937, by the Ocean Steamship company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways. Regular weekly scheduled flights quickly followed from Singapore to Kuala Lumpur, Ipoh and Penang from 1 May 1947 with the same aircraft type.The airline continued to expand during the rest of the 1940s and 1950s, as other British Commonwealth airlines) provided technical assistance, as well as assistance in joining IATA. By 1955, Malayan Airways' fleet had grown to include a large number of Douglas DC-3s, and went public in 1957 (Harmon, 2003).

When Malaya, Singapore, Sabah and Sarawak formed the Federation of Malaysia in 1963, the airline's name was changed, from Malayan Airways to Malaysian Airlines. MAS also took over Borneo Airways. In 1966, following Singapore's separation from the federation, the airline's name was changed again, to Malaysia-Singapore Airlines (MSA). The next year saw a rapid expansion in the airline's fleet and route, including the purchase of MSA's first Boeing aircraft, the Boeing 707s, as well the completion of a new high-rise headquarters in Singapore. Boeing 737s were added to the fleet soon after

Potentials

Singapore Airlines (SIA) is internationally recognised as one of the world's leading carriers and is a pioneer of inflight services such as free drinks and complimentary headsets. As of 1st September 2004, SIA operates 89 passenger aircraft with 16 more on order and another 45 on option. The staff strength of the SIA Group worldwide stood at 28,707 at the end of the financial year 2003-2004. The route network spans 90 destinations in almost 40 ...