Documente Academic
Documente Profesional
Documente Cultură
History
Singapore Airlines began with the
toMalaysia-Singapore(MSA).
History
In 1972, MSA split into Singapore
in 2006
Removed 17 aircrafts from its operating fleet
andSingapore Airlines.
Traveler.
Skytraxs Airline of the Year award three
Strategies
Compete on Service
Brand and promote the cabin crew
Innovation
Despite quality, SIA is cost-effective.
ASK were just 4.58 cents
Combined differentiation and cost leadership
Dual Strategy
Entail contradictory investments and
organizational processes
Demand for value for money has shot up
Grab middle and low end of the market
Competition from rivals
imitate
4 Paradoxes
Providing service excellence cost effectively
Innovating in both a centralized and a
decentralized manner
Being a technology leader and a follower
Achieving standardization and personalization
in its processes
SWOT Analysis
Strength
Weakness
Depends on international
traffic
Lags behind back office
technology
Limited growth in market
share
Opportunity
Threat
Innovation
First to bring on demand entertainment
systems
It is centralized and decentralized
Specialized meals
Product innovation department
Non stop all business class service
Induction of Airbus A380
entertainment system
Training Quality
Recruits first class university graduates
Training period 4 months. Industry avg 2 months
Spends $70 million a year to retrain employees
Deportment, Etiquette, Cultural sensitivity
Cabin crew is involved in decision making
Trained on several languages
Strategic Investment
Persons ability to taste food at 30,000 feet
declines by 40%.
$700,000 invested to build a facility that enables a
competitors.
Depreciating Aircraft
It depreciates aircraft over 15 years compared
Price effectiveness
New planes are more fuel efficient and less
prone to repairs
Low customer attrition.
Waste reduction
Offers lower pay by Singapore standards
Outsourcing
No frills headquarters and offices
Responsibility for cost reduction is
decentralized
Shostacks Molecular
Model
Flight
schedules
Aircraft
Service
frequency Transport
Pre &
PostFlight
Intangible
elements
In-flight
service
F&B
Price
Distributio
n Positioning
Marketing
Tangible
elements
strategy.
New entrants are taken care of by innovating.
Buyers bargain power is low because it is
already providing high quality for low prices.
Suppliers power is low as SIA is able to
negotiate well with its suppliers to purchase at
low price.
There is not much threat because of substitutes
as there are no equaling substitutes to flights.
approach
Place
People
Physical evidence, and
Process
Segmentation
Dividing heterogeneous market into a number of smaller,
homogeneous submarket
Geographic: Nations and Regions
Demographic: Age and Income
Psychographic:
Socio economic and life style
Behavioral: Usage rate and Attitude
MEAN
S.D
AGE AND
RESPONSE(AGR
EE
OR DISAGREE)
1.566
1.454
95%CONFIDENC
E INTERVAL OF
STANDARD
THE
ERROR
DIFFERENCE
MEAN
UPPE
LOWER
R
.2655
1.023
2.109
D.F
SIG.LEL
5.899
29
.000
2)
Frequency
Percent
Valid Percent
Cumulative
Percent
21
70.0
70.0
70.0
30.0
30.0
10
%
100.0
16.7%
30
100.0
100.0
73.3%
Frequenc
y
Percent
First Class
10.0
Business Class
6.7
Economy Class
25
83.3
Total
30
100.0
4)
Frequency
Percent
Professionals
15
50.0
Executives
10.0
Students
12
40.0
Total
30
100.0
AIRFARE COSTS
Total
FAIR
GOOD
VERYGOOD
EXECELLENT
Total
GOOD
VERY GOOD
EXCELLENT
19
13
30
6)Out of 30 response 28 o were responded that they are preferred to travel with SIAs compared to others airlines
REASON FOR TRAVEL IN SIAs AND HOW MANY TIMES TRAVEL IN AIRLINE (CROSSTABULATION)
Total
1-2
Times
3-5
Times
6-8
Times
>8
Times
12
10
Total
20
30