Political Factors
Discuss about the Organizational Support and Turnover Intentions.
Singapore Airlines was established in January 1947 and it is known as a wholly owned subsidiary of the government. The services offered by the company are related to air transportation, in-flight services and also ground services. In 1947, the company started with the twin-engine Airspeed consul under the Malaysia Airways. In 1972, the organization created two entities like Malaysian airline system and Singapore Airlines. The hub is Singapore change airlines. The slogan of the company is “A great way to fly”.
The company is managed or controlled by the key people who are Peter Seah Lim Huat and Goh Choon Phong. There are more than 25,194 employees who are conducting their routine activities in the organization. It has been seen that company has achieved goodwill in the market just because of the effective services provided in the country. The motive of the company is to offer effective services so that satisfaction level of the customers can be enhanced. It has been seen that company has a link with the holding company named as Temasek Holdings which have 56% of the voting stock (Singapore airline, 2018). It has been seen that company is considered as a five-star standard carrier in Singapore it is a subsidiary of the Singapore government.
It has been evaluated that political factor has an influence on the external business environment of the Singapore Airlines. This refers to various policies of the government that focuses on the intervention of the particular economy (Olson, Slater, Hult & Olson, 2018). For instance: The Singapore Airlines has taken into consideration the Air India by managing the severe blow to privatization blow of the Indian Government. This has also become a barrier in the political context for the overall activities of the organization (Chernev, 2018). The changes also affect the activities of the company of the Singapore airlines and also in context to China aviation. It also boosts the private airlines which are conducting their activities in the airline industry. There are many several limitations to investment as per the government body. Also, it has been seen that company consider the fair trading law, consumer law and also five freedoms of air (Karatepe, 2016).
The economic factors of the company are related to the overall rate of interest, taxation policies and also with the foreign exchange rates. The economic factor that gives impact on the business environment for the Singapore Airlines takes into consideration the emerging markets of Asia and also it helps in strengthening the overall Singapore dollar of comparison is made with the foreign currencies (Armstrong, Kotler, Harker & Brennan, 2015). It has been evaluated that company offered to consider a stake in the China Eastern Airlines against the 7.3 billion Hong Kong that has given many challenges as the shareholder. Also, the global demand is reducing the concerned of the business environment. Stabilization of the fuel cost is also given impact on the business environment of the company. The price rates of the fuel also influence the economic condition of the aviation industry and it has given influence on the overall activities of the company (Wirtz & Heracleous, 2016). The department of engineering of Singapore Airlines has focused on the repairs and also on maintenance so that large market share can be covered by the company. The company is also known as the first carrier that has focused on the products so that interests of the passengers who are conducting on board without the requirement of offering power to the laptops can be served. The organization has considered the sun as a specific microsystem that helps in the power of the productivity that suite in the flight (Fan & Lingblad, 2016).
Economic Factors
The social factors that affect the social environment of the company are related to altering the preferences of the customers. The organization has required to focus on the changing factors related to taste and preferences of the customers so that it can be easy to make the company products and services more customer-centric. There is also increase in the disposable income of the customers that have turned into the greater purchasing power of the customers (Kotler, 2015). The company focuses on the steps related to society and also consider the steps to reduce the overall carbon footprints (Heracleous & Wirtz, 2014). The activities of the company are also affected by the weather and also by the seasons. The organization also focuses on considering the use of cleaners and also with the greener aircraft so that sustainable activities can be conducted effectively (Banerjee, 2017).
It has been seen that it is an important structure that helps to analyze the overall competition level in the specific industry. It also assists in strategy development of the company. Porter five force models helps to analyze the effect of the various factors on the activities of the company and also it helps the company to give its services to the customers and helps to attain profits.
It has been seen that in this section the Singapore airlines face the issue in the aviation sector and also discloses the information that there are many services present in the market that conduct the activities in the niche markets. It can be analyzed that there are price wars that take place between the airlines. Also, it has been seen that industry rivalry is moderate in the current scenario.
When the evaluation of potential entrants in the market of the Singapore airlines has done it has been seen that it is weak. This is because the industry wants ore amount of capital and also the market is saturated. There is also high congestion in the airports and also the government focuses on enjoying more benefits in the activities of the company. It has been analyzed that it is difficult for other carriers to enter the market if the focus is given to the economic factor. There is also enhancement in the challenges in attaining the airport slots as Singapore as one airport. The cost of the activities and also the political factors enhance the barriers to entry into the new players (Malhotra & Peterson, 2014).
Social Factors
It is one of the important factors if the focus is given on the porter five force models. It has been evaluated that this factor reflects on the information related to the threat of substitutes if Singapore airlines are taken into consideration and it is seen that it is moderate. In case of SIA, it has been seen that Threat of substitute is moderate and also there are various low-cost carriers who are conducting their activities in the aviation industry and also the provision is high because of the high railway services. Also, there are many technologies in context to communication that can give the threat of substitution to the carrier services of the Singapore airlines. It is important for the company to emphasize on offering effective services (Sheth & Sisodia, 2015).
The bargaining power of the purchaser is also moderate in the Singapore airlines. It is moderate because the switching cost is also low of the various airlines. The management of the Singapore airlines also focuses on introducing the various loyalty reward programs that have enhanced the loyalty of the consumers and also assisted to retain more consumers. When customers are satisfied it can be easy for the company to accomplish overall goals and objectives in an effective manner. The internet also enables the customers to evaluate the prices of the services which are given by the various companies and also to consider the airlines of their choice. The prices are evaluated which help the customers to remain satisfied towards the activities of the company (Karatepe & Vatankhah, 2014).
The level of competition can also be evaluated by focusing on the bargaining power of the suppliers of the company. The evaluation shows that the bargaining power of suppliers of the organization is strong and also it is related to the duopoly of various Boeing as well as the Airbus of different planes. It can be seen that there the cost is not controlled and also the power of the suppliers enhances. The bargaining power is strong as there are many suppliers who are offering various services in the market (Wu, Gander, van den Berg & Signal, 2016).
A detailed evaluation of the activities of the company assists in collecting the proper information that helps in creating various strategic choices of the company. The strategic management of the organization can help to employ the strategies related to Ansoff’s matrix and also porters generic strategy at the time of implementing the various alternatives procedures of creating the growth strategy. The four recommendations are related to
- Strategy related to diversification: The management of the company can take into consideration introduction of the brand transmit hotel which is managed by the airline company. This is taken into consideration as a good opportunity for the carrier endorse related to the all-inclusive package for the travelers. This is one of the effective strategies that can help the company to differentiate its offering in the market and also it considers the stiff competition in the saturated market of the airline industry.
- Market penetration: the management of the company can focus on considering the penetration in the new markets. This airline industry conducts the activities in Africa and also its targets on the leisure passengers. The organization can also take into consideration the introduction of a family package that is included in the offers. The company management can also focus on entering into the partnership with the other organization who is giving various safaris and also the facilities related to camping and also the accommodation related to food and accommodation.
- Niche market: it is important for the management of the company to focus on considering the use of the airbuses that provide banquet halls. The space given by the company should have a space of 160 to 250 passengers. This can assist the organization to focus on targeting a niche market and also it is important for the individuals who are conducting conferences and other events in the flights. The events conducted in the flight should be related to the innovative idea that can safeguard the time and money of the passengers who are traveling.
- Product development: the Singapore airlines management should consider proper segmentation of the market and also it creates the service of the company if the focus is given on the needs and requirement of the target segments of the customers. The market also considers many types of customers and also the products. So, it is important for the marketers to consider the target segments so that opportunities can be offered effectively. The consumers of the company can be divided into various sections and also there are different ways that focus on demographic, geographic and also behavioral factors of the segments (Paroutis, Heracleous & Angwin, 2016).
Porter Five Force Analysis
Conclusion
By focusing on the overall report it can be concluded that external business environment of the company helps in attaining an insight towards the political, economic, social, technological, environmental and legal factors and also influence is seen on the proper functioning of the company. Therefore, the recent study also shows the proper analysis of porter five force models so that proper understanding can be made with the level of competition in the market. The five factors help to access the competition level prevailing in the market. In the last phase of the report, the proper evaluation is done of the present strategic recommendations by focusing on the Ansoff matrix based challenges that help to evaluate the porter five forces and also pestle analysis. This can help the company to accomplish goals and objectives in an effective manner and also the success can be achieved in the competitive market.
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Banerjee, S. B. (2017). Corporate environmentalism and the greening of strategic marketing: Implications for marketing theory and practice. In Greener Marketing (pp. 16-40). Routledge.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Fan, T. P. C., & Lingblad, M. (2016). Thinking through the meteoric rise of Middle-East carriers from Singapore Airlines’ vantage point. Journal of Air Transport Management, 54, 111-122.
Heracleous, L., & Wirtz, J. (2014). Singapore Airlines: Achieving sustainable advantage through mastering paradox. The Journal of Applied Behavioral Science, 50(2), 150-170.
Karatepe, O. M. (2016). The Effect of Psychological Climate on Job Outcomes: Evidence from the Airline Industry. Journal of Travel & Tourism Marketing, 33(8), 1162-1180.
Karatepe, O. M., & Vatankhah, S. (2014). The effects of high-performance work practices on perceived organizational support and turnover intentions: Evidence from the airline industry. Journal of Human Resources in Hospitality & Tourism, 13(2), 103-119.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Malhotra, N. K., & Peterson, M. (2014). Basic marketing research. Pearson.
Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, 62-73.
Paroutis, S., Heracleous, L., & Angwin, D. (2016). Practicing strategy: Text and cases. Sage.
Porter five force analysis.(2018). Logiq3. Retrieved from: https://www.logiq3.com/blog/how-to-competitive-analysis-using-porters-five-forces-framework
Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.
Singapore airlines.(2018).Singapore airlines. Retrieved from: https://www.singaporeair.com/en_UK/in/home
Wirtz, J., & Heracleous, L. (2016). Singapore Airlines: Managing Human Resources for Costeffective Service Excellence. In Services marketing: People Technology Strategy (pp. 695-703).
Wu, L. J., Gander, P. H., van den Berg, M. J., & Signal, T. L. (2016). Estimating long-haul airline pilots’ at-home baseline sleep duration. Sleep Health: Journal of the National Sleep Foundation, 2(2), 143-145.
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