Singapore Airlines Case Study

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Singapore Airlines Case Study

Company Name

Singapore Airlines

Type of Industry

Aviation

Headquarters

Singapore

Sales/Revenue

‎S$11.6 billion (FY 2017/18)

Area Served

Worldwide

Number of Stores

NA

Competition

Air India, Emirates, Etihad Airways, Malaysia Airlines, Qatar Airways, Qantas Airways, Lufthansa, British Airways.

USP

Comfort, luxury, technological advancements

Target Group

Higher income group

Products

New A380 Suites, New A380 Business Class, New 787-10 Dreamliner

Website

www.singaporeair.com

Singapore Airlines Introduction

One of the fastest growing airlines company in the world, Singapore Airlines Limited (Singapore Airlines) should be considered a thorough business success. The Company has been experiencing growth and success in an explicit way. The flag carrier airline of Singapore, Singapore Airlines has its hub at Singapore Changi Airport. A SWOT and PESTLE analysis of the Company is essential to strengthen the Singapore Airlines case study and to determine how the Company is operating within a given business environment overcoming different business challenges. It is in order to appraise the efficiency of the business position of Singapore Airlines that the Singapore Airlines case study has become an imperative.

Singapore Airlines Swot Analysis

The Singapore Airlines case study should have its inception with a Strength, Weakness, Opportunities and Threats (SWOT) analysis of Amway. This inception is needed to ensure a logical flow in the Singapore Airlines case study.

Strengths

One of the primary strengths of Singapore Airlines, as revealed by the Singapore Airlines Case study, is that, the Company has always emphasized the need of implementing the right business strategy at the right time. Improving the operational efficacy has been a hallmark of Singapore Airlines and this has been its strength. Moreover, the seating arrangement of Singapore Airlines is quite luxurious and the degree of comfort that the Company provides to its customers also serves as a strength of the Company. Besides, the arrangement for proper supply of in-flight food should also be considered a strength of Singapore Airlines. It should also be noted that the Company’s success has been attributed by its knack of investing in training and development programs. In this respect it should be taken into account the Singapore Airlines spends much in training its employees so that better service can be provided to the passengers. This adds to the Company’s market reputation as a classy airlines Company. Furthermore, the popularity of its effective frequent flier programs has also added to the strength of Singapore Airlines in a thorough manner.

Weakness

Despite having strengths, the Company suffers from certain specific weaknesses. For instance, as the Singapore Airlines case study reveals, owing to the gradual decline of the luxury airlines’ business, the overall business of the Company has suffered and the inability of Singapore Airlines to overcome this challenge should be considered its weakness. Moreover, the gradual reduction in the profit margin of the Company should also be considered its weakness. Besides, capacity issues have also added to the weakness of Singapore Airlines. In this respect one should take a note of the fact that compared to other competitors like Emirates Airline, Air China etc, Singapore Airlines is more faced with capacity related issues and with issues related to demand fluctuations. Such issues have contributed to the growing weaknesses of Singapore Airlines.

Opportunities

The Singapore Airlines case study reveals that there are still opportunities for business growth that should be capitalized by the Company. For example, the rise in the frequency of air travelling should be considered an opportunity for Singapore Airlines to cater to the needs of new customers who are willing to fly comfortably. Moreover, the rise in the demand for comfortable air journey should also be considered a scope for the Company because it paves the way for Singapore Airlines to promote its luxury sector in a thorough manner before potential customers.

Threats

The declining market of luxury air travel should be considered the primary threat to Singapore Airlines’ business. Moreover, as the Singapore Airlines case study reveals, the rise in the level of competition within the airlines industry is yet another threat to Singapore Airlines’ global business.

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Singapore Airlines Pestle Analysis

To make sure that the completion of the Singapore Airlines case study is done effectively, it becomes essential to conduct a thorough analysis of the political, economic, social, technological, and legal environments in which Singapore Airlines operates. Assessment of the aforesaid factors against the backdrop of some precise environmental factors will provide a deeper insight into Singapore Airlines’ global business position.

Political Environment

Political environment plays a decisive role in determining the fate of a business. This holds true for Singapore Airlines too. It should be noted that the stable political condition in Singapore characterized by a stable government has helped the Company to grow its business exponentially. Moreover, a strong backing of the Company by the government is yet another factor that has contributed to the growth and expansion of the business of Singapore Airlines. But it should be noted, as the Singapore Airlines case study reveals, that the growing political developments in different countries of operation has posed challenges to the Company that should be surpassed in a thorough manner.

Economic Environment

The economic environment, in which a business operates, impacts largely on the success of the concerned business. It should be noted that the stable economic condition of Singapore and its growing economic vigor have added to the advantages of Singapore Airlines. It should also be taken into account that strong economic reforms in the domestic sphere have also promoted the Company’s global business. Besides, the fall in the price of aviation turbine fuel has also provided ample scope to Singapore Airlines to promote its business in a thorough manner. But it should be noted that adverse currency movement might affect the Company’s business explicitly.

Social/Socio-Culture Environment

Shifting consumer preferences acts as a key social factor that might affect the business of Singapore Airlines. It should be noted, as revealed by the Singapore Airlines case study, that the growth in disposable income within the Singaporean society has helped the Company to expand its business on a global basis. Moreover, to appease certain specific social needs, Singapore Airlines has rendered efforts to promote itself as a socially responsible business entity. In this respect the Company’s carbon neutrality efforts deserves special mention (Singapore Airlines, 2019).

Technological Environment

The advancements attained in the implementation of innovative technologies have enhanced the business of Singapore Airlines. Implementation of entertainment tools has developed the in-flight technology of the Company and this has enriched its market reputation. Moreover, introduction of modern aircrafts has also added to the business strength of Singapore Airlines.

Legal Environment

Changes in regional and global legal frameworks related to aviation have impacted largely on the business of Singapore Airlines. Moreover, the Company is also faced with the risk of experiencing lawsuits in case of any service deficiency and pricing discriminations.

Environmental Factor

The Company’s carbon neutrality efforts along with its other corporate social responsibility (CSR) activities have enhanced the market reputation of the Company. Moreover, such efforts and activities have also established Singapore Airlines as a socially responsible business entity.

Conclusion

The Singapore Airlines case study has shown how the Company has been able to establish its market repute through investing in social, legal, and environmental needs. Both the SWOT and PESTLE analyses suggested the fact that Singapore Airlines is continuing to surface as a leader within its industry, promoting itself as a customer-oriented, environmental-friendly, and energy-efficient business entity.

References

Singapore Airlines (2019). When it comes to carbon-neutrality, we’re not sitting on the fence. Retrieved August 11, 2019, from https://www.singaporeair.com/en_UK/us/flying-withus/our-story/giving-back/environmental-efforts/

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