Singapore Airlines
CASE 3:
STRATEGIC CHOICES AT THE SINGAPORE AIRLINES GROUP
Strategic Management and strategic Competitiveness
Productivity Enhancement
1) Deployment of Technology
2) Total Involvement
3) Incentives
The External Environment
A) General Environment
1) Demographic
• Malaysian Airlines (regional competitor), which is geographically closed to Singapore, were imitating SIA’s strategy (threats)
2) Economic
• Global financial crisis – reduced demand for travel and increasing price sensitivity of its customers
3) Political
• Thailand had witnessed significant political unrest. SIA send relief flight made Changi a temporary hub to deal with massive congestion. (opportunity)
B) Industry Environment
1) Threat of New Entrants
• The industry has always attracted tremendous attention, pulling governments, analysts and wealthy businessmen to own an airline.
2) Intensity of Rivalry Among Competitors
B.C.G. Matrix
[pic]
SIA is in the ‘Stars’ quadrant as it have high market share and high growth. Invest further in these - they incur high costs, but they are market leaders and should also generate lots of cash. Stars may balance on net cash flow, but the organization should try to maintain market share on this would because rewards are likely.
The Internal Environment
Tangible Resources –
A) Financial
• Internal funding. No subsidies from government. One of the most profitable airlines in the world.
B) Organizational
• Total Involvement
C) Physical
• Terminal 3 was build to enhance SIA‘s capacity and image in January 2008.
D) Technological
• Deployment of Technology
Intangible Resources –
A) Human Resources
• Total Involvement
• Incentives
B) Innovation
• Customer conveniences and facilities
(C )Reputational
• Accolades and Awards
Capabilities – ??
Core Competencies
STRATEGIC CHOICES AT THE SINGAPORE AIRLINES GROUP
Strategic Management and strategic Competitiveness
Productivity Enhancement
1) Deployment of Technology
2) Total Involvement
3) Incentives
The External Environment
A) General Environment
1) Demographic
• Malaysian Airlines (regional competitor), which is geographically closed to Singapore, were imitating SIA’s strategy (threats)
2) Economic
• Global financial crisis – reduced demand for travel and increasing price sensitivity of its customers
3) Political
• Thailand had witnessed significant political unrest. SIA send relief flight made Changi a temporary hub to deal with massive congestion. (opportunity)
B) Industry Environment
1) Threat of New Entrants
• The industry has always attracted tremendous attention, pulling governments, analysts and wealthy businessmen to own an airline.
2) Intensity of Rivalry Among Competitors
B.C.G. Matrix
[pic]
SIA is in the ‘Stars’ quadrant as it have high market share and high growth. Invest further in these - they incur high costs, but they are market leaders and should also generate lots of cash. Stars may balance on net cash flow, but the organization should try to maintain market share on this would because rewards are likely.
The Internal Environment
Tangible Resources –
A) Financial
• Internal funding. No subsidies from government. One of the most profitable airlines in the world.
B) Organizational
• Total Involvement
C) Physical
• Terminal 3 was build to enhance SIA‘s capacity and image in January 2008.
D) Technological
• Deployment of Technology
Intangible Resources –
A) Human Resources
• Total Involvement
• Incentives
B) Innovation
• Customer conveniences and facilities
(C )Reputational
• Accolades and Awards
Capabilities – ??
Core Competencies