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Thus capitalizing on the Strengths and Opportunities the company has the potential to cover up its weaknesses and

fight out the threats which it would face in the coming year. The company has been doing pretty well and is expected to perform even better in the coming year. However it is essential that the company takes right measures ensuring that they move to its predefined goals and objectives.

STRENGHTS
A modern fleet (airplane renewal every 6 year maximum) Differentiation toward the competition: higher quality services (Comfort and luxury) Staff training and development programs have helped to maintain customer service quality, to control costs of staff retention (thousands hours of systematic training to the entire cabin crew) Always n1 in term of customer satisfaction Marketed itself as a value adding airline operator by focusing on cost control to improve competitive capabilities Differentiation strategy based on a strong brand image reflecting high quality and seeking to create added value to the flying experience of customers (luxury and comfort) Competitive advantage in adding value for shareholders and sustaining long term corporate growth Competitive advantage: professional and customer orientated service A customer politic orientation (faithful program) Extra value through customer service rather than pure

WEAKNESSES
High prices (very specific market segment) Presence only in capitals (due to their positioning, they cant be implemented locally) High cost level (Entry and renewal investments are important: limit and slowdown the creation of new lines) Difficulty for international coordination (different areas, cultures, management types) Not flexible enough to respond to increasing cost pressures on profitability, which has been an issue for SIAs operations and corporate growth
Although the company has been maintaining good financial performance over the years the company has failed to maintain turnover ratio as it should have. It has some very weak turnover ratios which is one of the major weaknesses for the company. Also the company has one of the most unbalanced portfolios when compared to the other players or when the ideal scenario for a company in this industry is expected to have is estimated.

discounts on prices Investments in technology to control cost levels Networkcommunication and retailing efficient Wide choice of destinations and regular flights SIA is committed to providing a world class quality and

service, the airline allocates a substantial amount of time and money into there staff training and education. The company has 4 training facilities with various programs that exercise classroom, work experience and simulation strategies.
Company deemed and credible Brandingbased on quality The company has always the first to introduce new innovative

ideas for example hot meals, free alcoholic and non-alcoholic drinks, Hot towels, personal entertainment systems, and video on demand. Another benefit of owning aircrafts outright gives flexibility if there is a dramatic decline in the economy, SIA has the freedom of not being locked into long leases and aircrafts can be disposed of, if need be. Therefore they can handle the ups and downs of the economy, more so than competitors.
Growing in Asia/Pacific Market The first user of the A380 (innovative and enterprising company) Investment in technology (e-system) improve cost-effective sales and billing systems Skilled management and governance procedures Strong financial framework/ performance

Established its own low price airline Tiger Airlines Motivational policies for employees Targeted market segmentation
The company has a larger geographical spread across the whole continent and is expanding its base each day.

building solid capital the airline now enables them to purchase

aircrafts and equipment internally without the need for leases and interest quality/service differentiation strategy to become one of the leaders Part of the Star Alliance network of airlines Singapore Airlines became a member with the star alliance, which helps the company maintain economies of scale by code sharing, where SIA can offer services on another airline under its own flight codes and offer more destinations.

OPPORTUNITIES
Globalization: significantly the international transport demand has is

THREATS
Changing purchasing decisions: customers more sophisticated (attitudes towards flying) Terrorist related attacks Concerns for safety The entry of low cost (cut price) flight companies Fuel prices and operational costs constantly increasing, and its not a sustainable resources Deregulation of the airline industry open doors for new

increased.

Nowadays the

flight industry

essential for the global economy and a key actor Diversified geographical spread Asias population is constantly increasing every year and it increases then the demand in flights and enrichment of the developing countries (new market potential)

Increase in Transpacific Cargo Agreement Open Skies with the United States for unrestricted flights, France, Japan and Australia Deregulation of the airline industry helped to become GLOBAL. From frangmented competitive market to global competition Strategic location of Singapore on the map

entrants and so increase competition Price wars due to increased competitive levels in the industry The flying market is extremely interrelated to the economic cycles and geopolitics situation. Unbalanced business portfolio Instability of the Middle East

SWOT

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