Company Overview
This report will focus on the overall operations of the Singapore Airlines. Singapore Airlines is considered as the largest company in the airline sector. It has been analyzed that Singapore airlines is showcased on the SGX and is the popular carriers in the market if market capitalization is taken into consideration. There are 102 air crafts that conduct the activities of the company. The company geographic segment is related with East Asia and Europe (Singapore airlines, 2018).Singapore airlines also achieved the award in the good standard service offered in Singapore and also it is considered as the major part of the Singapore Airlines. It is analyzed that the business focuses on offering international airport and flight services to the customers so that their experience can be enhanced.
A Singapore airline has created itself as the flag carrier of Singapore and it is seen that it is linked with more than 19 airports which are located in 18 areas. It has been analyzed that destinations are Australia and also the various areas of the Middle East. Singapore Airlines also emphasizes the strategies which are concerned with the differentiation if the focus is given on the service innovation (Jaffe, 2016).
Political factor
Political factor is related with the overall policies which affect the external business environment of the organization. It has been seen that policies are also related with the government in which the connection is made with the economy. The organization has emphasized on the Air India so that proper management can take place. It has created an issue in the entire political factor for the activities of the company (Bok, 2015).
Social Factor
It has been seen that there are various aspects that impact the overall social environment of the company. This factor is related with the overall wants and need of the consumers. The organization emphasizes on the method concerned with the customer-centric approach. There is increase in the entire disposable income of the customers that have changed the overall purchasing capacity of the customers (Barrows, 2018).
Economic Factor
This is related to the interest rate, policies related to taxation and with the rates of exchange foreign. In this it is related with the overall corporate atmosphere of the organization which emphasizes on the Asia developing markets and it also helps in enhancing the Singapore Dollar if proper differentiation is made with the exchanges of the foreign market. It can be seen that the company has considered on the stake in China Eastern Airlines that are not within the 7.3 Million and there are various issues which the stakeholders face (Holloway, 2017). In the recent business environment, it is seen that demand is reducing and the fuel cost is also stabled which can affect the overall business environment of the company. The fuel rates are more influenced by emphasizing on the overall economic factor concerned to the aviation industry and it has given influence on the activities of the company (Parameswaran, 2018)
PESTLE Analysis
Technological factor
In this aspect the emphasis is on the technology in which it can be evaluated that the efficiency concerned to the fuel is considered so that activities can take place in a smooth manner. It can be seen that department of engineering of the organization focus on the entire repairs so that large market can be taken into consideration. The organization is considered as a first carrier that focuses on the services so that the customers can effectively take the flight the need of offering the power to the laptops that are offered. Singapore airlines also focus on the microsystem so that overall productivity or the activities can be increased (Fan & Lingblad, 2016).
Environmental factor
Singapore airlines give emphasis on the concept related with the society and also the focus is given on the carbon footprints that should be reduced. The activities of the company are also hindered by the weather and it varies from season to season (Shah, Jamil, Shah & Kazmi, 2015).
Legal factor
In this factor, the impact is on the operations and also it encourages the company to conduct the activities according to the policies and rules of the airline sector. It has been evaluated that Singapore Airlines focuses on the fair trade laws and also it is linked with the consumers so that right activity can take place in a proper manner. The legal procedures are also taken into consideration by the consumers so that in a right way the operations can take place.
When the emphasis is given on the five force model it can be seen that in this proper environment is analyzed. This helps to analyze the competition level in the market and also it helps the company to achieve growth in an effective manner. The model is related with the various elements which impact the operations of the Singapore Airlines. The company uses this model so that profitability can be attained easily.
Industry rivalry
It can be seen that the organization has to face issues in the aviation industry and its assist in elaborating the entire data related to the services which are offered to the customers. The company focuses on niche market so that activities can take place in a right direction. There are also price wars which take place in various different sectors. It can be analyzed that the rivalry is moderate in the recent scenario (Williams, 2017).
Porter’s Five Forces Model
Potential of the new entrants
When Singapore airline is taken into consideration than it can be seen that potential entrant is not strong, it is weak and the reason behind it is related with the investment in establishing the business and also the market is saturated. It can be seen that the congestion rate is high in the airport area and the government emphasizes the benefits which are related to the entire business activities. To enter into the market there are various difficulty in carriers if the evaluation is made on the overall economic factor. The challenges are enhancing if the focus is given on the Singapore Slots and also the cost of activities are affected by the new competitors in the market conducting same activities (Chernev, 2018).
Threat of substitutes
This is considered as one of the important aspects if the focus is given on the Porter five force models. It has been seen that if the focus is given on Singapore he threat of substitute is moderate and also various low-cost carriers who are finishing their activities of the airline sector. When high railway service is considered then it has been seen that provision is high (Gross & Lück, 2016). There are various technologies which have a link with the communication. The threat to the company is related to it only. It is essential for the organization to emphasize on effective services so that in the correct manner the operations can be completed. When proper services are given by the company then it can be simple to conduct the activities in proper manner
Bargaining power of the Suppliers
The bargaining power of the purchaser is strong and there is a duopoly of the other airline sector. The overall cost is increased and also the power of the suppliers increases. The bargaining power of the suppliers is strong and there are various suppliers who are giving services in the market. This will assist the organization to focus on achieving goals and objectives in an effective manner (Joo & L. Fowler, 2014).
Bargaining power of the purchasers
In this, it has been analyzed that it is moderate if the emphasis is given on the airline sector. It is moderate as the switching cost is low for the other airlines. The company management focuses on the loyalty programs so that consumers can experience the overall services of the company in a proper manner. The internet has given impact on the prices of the services which are offered by the company and also it has changed the mindset of the customers (Kaufman, 2015).
Strategic Recommendations
To survive in the competitive environment it is important for the company to focus on considering the strategic recommendations so that it can be easy to complete the activities. The company should emphasize on the strategic management by focusing on the porter generic strategy and also on Ansoff’s strategy so that it can be easy to achieve growth in the market. The recommendations are
Development of the services
It is important for the company to emphasize the proper segmentation by focusing on the market so that the activities of the company can take place in an effective manner. The marketers should emphasize on the target segments so that opportunities can be taken into consideration and also various techniques should be considered by relating it with the behavior.
Niche market
It is important for the company to focus on the services related to the Airbus by giving banquet halls. It is important to provide space for more customers so that it can be easy to target the customers and it will help to achieve growth in the competitive market. the can company can easily target in the niche market.
Diversification
It has been seen that it is taken into consideration by the Singapore airlines by giving all-inclusive packages for the travelers so that the satisfaction level of the customers can be maximized. By considering this technique it can be simple to achieve large market share as it can help to achieve more profitability in a proper manner. Diversification has a great role in operating the activities of the company and also it enhances the overall profit of the company. It is the best strategy that should be considered by the company.
Market penetration
The management of the Singapore airlines emphasizes the entire penetration in the new market. It is important for the airline sector to focus on the activities related to Africa and it also focuses on the leisure passengers. It can be seen that Singapore airlines should focus on entering into the partnership with the other airlines so that the services related with the campaigns can be taken into consideration and also it helps to maintain the quality of the services offered to the customers in the flight. It will help to induce the customers towards the services which are offered to the customers.
Conclusion
It can be concluded that Singapore airlines should consider all these factors so that it can be easy to achieve goals and objectives in the competitive environment. In the first phase of the report pestle analysis is discussed that is important for the company and also in the next phase porter five force models is taken into consideration so that actual position can be determined. The recommendations that are discussed in the report should be considered by the company so that it can be easy to achieve the profit in an easy manner.
References
Barrows, S. D. (2018). In Asia, Does Airline Service Quality Matter to Investors?. Asian Social Science, 14(4), 8.
Bok, R. (2015). Airports on the move? The policy mobilities of Singapore Changi Airport at home and abroad. Urban Studies, 52(14), 2724-2740.
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.
Gross, S., & Lück, M. (Eds.). (2016). The low cost carrier worldwide. Routledge.
Holloway, S. (2017). Straight and Level: Practical Airline Economics: Practical Airline Economics. Routledge.
Jaffe, S. D. (2016). Airspace Closure and Civil Aviation: A Strategic Resource for Airline Managers. Routledge.
Joo, S. J., & L. Fowler, K. (2014). Exploring comparative efficiency and determinants of efficiency for major world airlines. Benchmarking: An International Journal, 21(4), 675-687.
Kaufman, R. (2015). Why Your Customer Service Training Won’t Lead to Happy Customers (or Inspired Employees). The Journal for Quality and Participation, 37(4), 33.
Parameswaran, K. (2018). Does First Class Make Sense for Airlines?. Studia Humana, 7(2), 31-44.
Shah, S. T. H., Jamil, R. A., Shah, T. A., & Kazmi, A. (2015). Critical Exploration of Prescriptive and Emergent approaches to Strategic management: A review paper. International Journal of Information, Business and Management, 7(3), 91.
Singapore airlines.(2018).Singapore airlines. Retrieved from: https://www.singaporeair.com/en_UK/in/home
Williams, G. (2017). Airline competition: deregulation’s mixed legacy. Taylor & Francis.
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