Business Strategy - Singapore Airlines

Running head: BUSINESS STRATEGY
Business Strategy
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BUSINESS STRATEGY
1
SWOT Analysis of Singapore Airlines
The SWOT Analysis includes strengths, weaknesses, opportunities and threats which
is considered to be the mechanism that is helpful in understanding the effectiveness of the
firm in the competitive business environment.
Strengths
Singapore Airlines is considered to be one of the largest airlines in the world and the
company is mainly backed by the different government rules and regulations. Moreover, the
company is capable of boosting the service delivery in an impeccable manner which will be
capable of managing their growth successfully. Moreover, the SIA has been capable of
implementing and building the effective kinds of customer engagement programs which are
mainly efficient in valuing the customers successfully.
Weaknesses
STRENGTHS
It is mainly backed by the local government
officials
The different services which are delivered
are impeccable in nature
The company has efficient kind of effective
flier programs
WEAKNESSES
It is considered to be one of the expensive
airlines
It mainly follows the international traffic
There are different issues related to
capacity which impacts the growth of the
company negatively
OPPORTUNITIES
The company has the chance in expanding
their operations in an efficient manner
There are differennt destinations which
need to explored by the SIA
There can be growth of Young Fleet in the
SIA which will be efficient in managing
operations
THREATS
There is high level of competition
present in SIA
There is rise in the prices of the fuel
which impacts the effectiveness of SIA
There are few restrictions of the
airspace which will be impacting growth
patterns of the company
SWOT

BUSINESS STRATEGY
2
SIA is one of the expensive airlines as it has been seen in comparison to the other
airline companies which are present and therefore, it decreases the number of customers.
Moreover, SIA is relying heavily on different kinds of international traffics and the capacity
issues are the other aspect which is impacting growth of SIA in the competitive business
scenario. Due to fluctuations in demand, it will be impacting the growth of the company
negatively.
Opportunities
Singapore Airlines have the capability to expand the different business operations in
different parts of the world and it will be providing a different aspect for exploring in various
sectors as well. As of the year 2015, SIA has youngest aircraft fleet and it is the most suitable
opportunity for improving their business operations successfully in adopting the new airline
which are commercials.
Threats
There is high level of stiff competition in the airline industry and as there has been
increase in the level of the budget airlines in the market, it is impacting the growth of the
company negatively.
Porter’s Five Forces Model Analysis of SIA
The Porter’s Five Forces Model is considered to be the framework which helps in
analysing the competitiveness level of the business environment in identifying the
potentiality of the strategies in generating profitability successfully.
Threat of Substitute Products- It is weak or low as the financial aspects which are
required in entering the airline industry. Moreover, there has been increase in the budget