Singapore International Airlines: Company Analysis

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Singapore International Airlines: Company Analysis


A Marketing Study in partial fulfillment of the Module ADPM/01

Supervised by Ms. Charmie Jayaweera


This report is a comprehensive study on the chronological overview of the Singapore International Airlines (SIA) and gives a brief profile of its various businesses. The report then identifies and discusses the influence of the environmental factors that have given it a dominant position in the global airlines industry. A critical analysis of SIA in the context of its basic business operations and marketing strategies follows. The report concludes with an outlook on the present and future performance of SIA.

This report is an extensive study on SIA’s mission, success factors, and strategic and planning in terms of marketing.

Table of Contents
Table of Contents3
List of Tables4
List of Figures5
1.0 Introduction6
2.0 Corporate Overview7
3.0 Analysis of Environmental Factors10
3.1 PEST Analysis10
3.1.1 Political Factors10
3.1.2 Economic Factors11
3.1.3 Social Factors12
3.1.4 Technology Factors12
3.2 SWOT Analysis13
3.2.1 Strengths14
3.2.2 Weaknesses15
3.2.3 Opportunities15
3.2.4 Threats15
4.0 Basic Business Operations16
5.0 Business Strategies19
5.1 Marketing Mix19
5.1.1 Price19
5.1.2 Place19
5.1.3 Product20
5.1.4 Promotion20
5.2 Strategy21
5.2.1 Externally:22
5.2.2 Internally:22
6.0 Recommendations for Improvements25
7.0 References26

List of Tables
Table 1: Major companies in The Singapore Airlines Group18

List of Figures
Figure 1: SIA’s Competitors9
Figure 2: SIA’s Balance Sheet16

1.0 Introduction
The airline industry is an exclusive and fascinating industry. The reach and impact of the industry to a wider population of the global market, and the glamour associated with it, has captured the interest of the world and has made the industry a well studied one. In 1994, the British Airways Chairman, Sir Colin Marshall called the aviation industry, “the flywheel for the engine of the worlds industry” (Chan 2000a). The figures of the industry are massive, and easily justifies these comments. According to the Corporate Location Journal 1994 (p.15), by 1994 the industry was worth over $ 1,000 billion (directly, indirectly and induced), employed 22 million people and transported and provided services to over 1.25 billion passengers a year.

A quarter of the world’s manufactured exports by value reach their markets by air. The industry is also at the heart of the travel and tourism, the world’s largest industry, employing one in nine workers.

Singapore International Airlines (SIA) is one of the two offshoots of the Malayan Airways, an airline company formed in 1947 by British interests when both Malaya and Singapore were under British rule. When Malaysia was formed in 1963 the airline became known as Malaysian Airways. In 1966, the company’s name was changed to Malaysia-Singapore Airlines (MSA), only to cease operation in 1972 when both governments aspired to have their own airlines (Nationmaster 2005), bearing their country’s name.

The Malaysian Airlines System (MAS) is the spin-off on the Malaysian side while Singapore International Airlines (SIA) goes to Singapore (Chan 2000a). Singapore International Airlines can only operate international flights, Singapore being an island city (area 647.5 km2) at the tip of the Malaysian peninsula; yet the company has grown in stature to become one of the most successful airlines globally. This is judged from the various industry awards it has garnered since its inception in 1972.

2.0 Corporate Overview
Headquartered in Singapore, Singapore Airlines Ltd. (SIA) is a passenger and cargo airline. SIA has been named the world's best airline for the 3rd time in 10 years, after winning the 2008 Airline of the Year title in the latest World Airline Awards...