Swot Analysis for Sia Essay Example

has taken advantage of liberal bilateral aviation agreements between Singapore and Thailand, and with the United Arab Emirates, to offer more onward connections from Bangkok and Dubai respectively. * Their strength invited protectionist. It did not gain access on transpacific routes from Australia to US. They deffered decisions and SIA wants to dramatically expand service to Canada and establish a North America hub in Vancouver however deterred by Canada’s policies.

* Singapore international airline culture is a corporate culture, their corporate culture encourage the labours to improve cabin services. Company culture gives them the competitive advantage and it is competing in the marketing lead front. * The Singapore airline’s image and reputation are shown high impact on the people in Singapore due to their commendable service. * Structure of the SIA is strong enough. They are having subsidiaries’ this wills to give more profits and they formed subsidiaries in Singapore out of Singapore. They are providing not only passengers transporting services but also they are providing cargo services, around eight countries. SIA has fully owned no frill airline services. These structures are holding the SIA’s market share in high level.

* Employees are the asset of their strategic. Their employees are from global labour market and specialized in their fields getting high effective and efficient work. * They have established hubs and subsidiaries in many countries it is strength of managing their resources effective and efficiency. It will increase the profit of SIA. * SIA has the strong experience of more than fifty years from the beginning of the MSA. Experience is also strength of SIA. Because it is widely known its services

in time based. It will have good experience management and managers. Experience came up with new ideas to satisfy their customers.

* Online ticket booking reduce operational cost and reduce hassle. * SIA has a big operational capacity it is strength of the company. It gets fuel in from subsidiaries located in other countries to reduce petrol cost. * SIA market share report in 2002 December is 18.47 per cent. Recent report is around 25 per cent. The growth of the market share is strength. * SIA has good customer service and builds market share.

* SIA won many awards * Scoot offers IPAD to long haul travellers.

Weaknesses – Singapore Airline(Kenneth) It is too expensive to travel that middle class people can just dream of traveling via Singapore airlines. SIA is too dependent on premium travel. SIA has excess capacity in its cargo fleet, not efficiently in using resources. SIA is considered small scale in the global market. US airlines with fleet size of at least 300 and Delta Airline with 706, compared to SIA with 106. Customers naturally develop a very high expectation level and therefore very minor fault could blemish its repute easily. SIA have a low asset turnover.

SIA have an unbalanced business portfolio.

Threats The fuel price has risen by over 50% in the past five years. The consistently increasing of fuel prices resulting in increasing of the transportation cost. The increasing of flying cost hence increases the ticket fee for each flight. If Singapore Airlines wants to remain competitive, it may not set the ticket price too high. Therefore the profit gain from each

flight will decrease. If the cost and the gain are unable to balance, the company may face a difficulty in capital turnover.

Singapore Airlines is a high class airline which the ticket price is higher than the industry average. The increasing in numbers of low-cost airlines may increase the competition in the airline industry. Most customers may turn to low-cost airlines as they are much cheaper compared to Singapore Airlines. This causes lost in customers and sales.

New affordable luxury airlines entrant to the market may increase the competition as well. Customers have more choices and their preferences may affect competitiveness of Singapore Airlines. Singapore Airlines may lose some customers to those luxury airlines if they provide better services or price than SIA.

Opportunities

Singapore Airlines won many awards such as the World’s Best Business Class Award 2012 for its good services. It urges many journalists to write about SIA. Media publicities help SIA to attract more customers and to build goodwill to attract more shareholders or investors. As a result, the company is able to enlarge its business.

Globalization causes more business travels though out the world. Businessmen who have sponsors or are rich may choose higher class airline such as Singapore Airlines. This is a very huge potential market for SIA as the globalization is growing and the number of rich people is increasing.

Singapore Airlines saw the potential market on the short distance travelers. These travelers usually choose budget airlines which the tickets are very cheap in price. Therefore SIA introduced its own budget airline, SCOOT last year. This enlarges the market from the more affordable

ticket price. For the goodwill of SIA, people may choose Scoot compare to other budget airlines.

Singapore Airlines flies to 62 international destinations in 35 countries. SIA can enlarge its business by having more destinations in more countries. There may be a very large potential market in those developing countries as more and more businesses are setting up and more and more business travels are required.