Singapore International Airlines Case AnalysisMEMORANDUMDATE: October 16, 2006RE: Singapore International AirlinesThis memo will address the global business strategy of Singapore International Airlines, the environmental forces facing the company and recommend the equity investment in Virgin Atlantic to overcome the challenges facing the airline.
The Affects of Environmental Forces on Global StrategyThe current global business strategy of the Singapore International Airlines (SIA) is a global product/ market approach to growth. SIA differentiates themselves by providing quality customer service and marketing that service in the same fashion throughout the world. Socio-cultural, technological, economic, and political forces had various affects on SIAs strategy. Deregulation, privatization, and new technologies reshaped the airline industry on a global level. Factors affecting SIA’s task environment included: the imitations of SIA’s service innovations, alliances with increasing geographic reach, decreasing regulatory barriers via between countries, excess capacity, and competitive pricing.
Aircrafts in Singapore are considered to be an ‘all-or-nothing’ option. SIA’ policies are based on their ability to meet strategic and other demands. Aerials in Singapore are often designed using the best technology and products and the latest in advanced technology. It is believed that Singapore Airlines is also a global leader in environmental issues and innovation.
The Aircrafts category measures the level of performance that have to be delivered for a given market. Some are a great investment by a carrier, while some are a poor investment by the carrier. Therefore, a company can be considered to be in a ‘all-or-nothing’ financial position, if they do a service that are well worth their investment. This would not be considered an all-or-nothing option for the airline industry, because they would have to change their business from a multi-billion dollar airline. This is a good situation in which to be a profitable airline. Many of the reasons a carrier could be considered a ‘all-or-nothing’ option include the following: they would change their business: they would have to pay more for the new technology and more resources would be found in the business to satisfy a new need in order to retain their global footprint; they would have to pay down their debt to shareholders to support new development opportunities; they would have to maintain a better reputation due to their reputation as being ‘not only well-respected, but top-notch of the competition globally; they would have to offer better customer service as reflected by their unique offerings; they would be highly valuable to competitors by providing a better value for the company and their investors; and they would have to maintain a higher market share of both the carriers and the users of their airlines. The above situations result in the most successful airline of all times.
Aircraft manufacturers are frequently the target of the current policy of government. Finance Minister Mihir Saafari is known to encourage the airline sector to use ‘all means available to produce or receive services, including private sector, national and international, to achieve economic, development, safety and social benefits, and the protection against competition; and those who are the subject of lobbying by government for policy initiatives to ensure that they fulfil their obligations to all those who work for them.”
SIA also considers these policies to be ‘interfering with their business, or creating conflict’, and will pursue further action if there is further deterioration of its relationship with the airlines in the future.
The Government has also taken some steps to strengthen their position in the business world.
1. Governments have established a new government-appointed body to coordinate their initiatives around the issue of airline safety. Under this new body and other changes, airlines can be awarded a business plan by the airline industry. The company can then apply to the government for a business plan to meet its requirements. On March 24, 2020
Aircrafts in Singapore are considered to be an ‘all-or-nothing’ option. SIA’ policies are based on their ability to meet strategic and other demands. Aerials in Singapore are often designed using the best technology and products and the latest in advanced technology. It is believed that Singapore Airlines is also a global leader in environmental issues and innovation. The Aircrafts category measures the level of performance that have to be delivered for a given market. Some are a great investment by a carrier, while some are a poor investment by the carrier. Therefore, a company can be considered to be in a ‘all-or-nothing’ financial position, if they do a service that are well worth their investment. This would not be considered an all-or-nothing option for the airline industry, because they would have to change their business from a multi-billion dollar airline. This is a good situation in which to be a profitable airline. Many of the reasons a carrier could be considered a ‘all-or-nothing’ option include the following: they would change their business: they would have to pay more for the new technology and more resources would be found in the business to satisfy a new need in order to retain their global footprint; they would have to pay down their debt to shareholders to support new development opportunities; they would have to maintain a better reputation due to their reputation as being ‘not only well-respected, but top-notch of the competition globally; they would have to offer better customer service as reflected by their unique offerings; they would be highly valuable to competitors by providing a better value for the company and their investors; and they would have to maintain a higher market share of both the carriers and the users of their airlines. The above situations result in the most successful airline of all times.
Aircraft manufacturers are frequently the target of the current policy of government. Finance Minister Mihir Saafari is known to encourage the airline sector to use ‘all means available to produce or receive services, including private sector, national and international, to achieve economic, development, safety and social benefits, and the protection against competition; and those who are the subject of lobbying by government for policy initiatives to ensure that they fulfil their obligations to all those who work for them.”
SIA also considers these policies to be ‘interfering with their business, or creating conflict’, and will pursue further action if there is further deterioration of its relationship with the airlines in the future.
The Government has also taken some steps to strengthen their position in the business world.
1. Governments have established a new government-appointed body to coordinate their initiatives around the issue of airline safety. Under this new body and other changes, airlines can be awarded a business plan by the airline industry. The company can then apply to the government for a business plan to meet its requirements. On March 24, 2020
The SIA’s business strategy is the generic competitive strategy of differentiation. Differentiation creates value through uniqueness, superior quality and services. This business strategy of differentiation did correlate with SIA’s global business strategy to pursue a global/product market approach to growth through their core competency of superior customer service. The company was at the forefront of service and their quality employees provided them with a competitive advantage over other airlines in regards to service using an oriental mystique that was prevalent in the Western world were the company sought to grow.
An Opportunity for Investment in Virgin AtlanticAdvances in transportation, communication,