External Environment Analysis of Singapore Airlines

Added on - 28 May 2020

PESTLE Analysis of Singapore Airlines

We will do the following activities for Singapore Airlines Limited (SIA):  Background of the company and nature of its business, External environment analysis, PESTLE Analysis, Porter’s Five Forces, Strategic recommendations. The PESTLE and Porter’s Five Forces analysis of the company will help in identifying some of the major barriers in the international, economical and political sectors. Furthermore, the analysis of the external factors has helped in identifying some of the major barriers in the international, economical and political sectors. 

  • 11

    Pages

  • 2853

    Words

  • 452

    Views

  • 0

    Downloads

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 11 pages
Running head: EXTERNAL ENVIRONMENT ANALYSIS OF SINGAPORE AIRLINESExternal Environment Analysis of Singapore AirlinesName of the student:Name of the university:Author note:
1EXTERNAL ENVIRONMENT ANALYSIS OF SINGAPORE AIRLINESTable of ContentsIntroduction................................................................................................................................2Discussion..................................................................................................................................21. Background of the company and nature of its business.....................................................22. External environment analysis...........................................................................................32.1 PESTLE Analysis.........................................................................................................32.2 Porter’s Five Forces.....................................................................................................53. Strategic recommendations................................................................................................7Conclusions................................................................................................................................7References..................................................................................................................................8
2EXTERNAL ENVIRONMENT ANALYSIS OF SINGAPORE AIRLINES1. Background of the company and nature of its businessThe Singapore Airlines Limited (SIA) is a well-established national airline ofSingapore. It has always been a famous airline in the world. It represents the hallmark of thelong history of accomplishment and advancement of Singapore ("Corporate info", 2018).This airline company operates at the Singapore Changi Airport. It has its main focus on theAustralian and Asian market. It was founded in the year 1947 by Liverpool, the OceanSteamship Company. The company was expanded overnight after its split from the Malaysia-Singapore Airlines (MSA) in the year 1972 and within the last forty years, it has grown to aposition that is unknown to none. In current days, it is one of the biggest and the mostsuccessful and notable airlines in the world. Its mission statement states that the Singaporeairlines is dedicated towards providing the highest quality air transportation services to itscustomers as well as maximizing the returns in order to benefit its employees andstakeholders. It consists of a fleet of about 103 aircraft. Some of its reputable fleets includeBoeing 777, Boeing 747, and A380 ("Our Heritage", 2018). The main motto of the companyis to attain the position of world’s excellent citizen, which holds the responsibility ineverything that they do in sustaining and building its excellence in services with strong andpowerful commitments towards the environment. The company has received various awardsand recognitions for its high level of services. The in-flight services include first class, secondclass, and the economy class.2. External environment analysis2.1 PESTLE AnalysisThe PESTLE analysis records the different vital factors inPolitical,Economic,Social,Technological,Legal, andEnvironmental aspects that may havean influence on the business of a company (Kolios and Read 2013). They help the businessheads in strategizing and planning their next steps by providing them the view of the present
3EXTERNAL ENVIRONMENT ANALYSIS OF SINGAPORE AIRLINESand upcoming external factors, which may have an impact on the company (Zvirblis andZinkeviciute 2012).Political factors:The political factors refers to all the government policies like, theintervention degree in the economy and what are the various goods, products and servicesthat the government wants to provide (Contributor, 2018). The government has majorinfluence on the various operations and services of the airline industries. It is more or lessbecause of the fact that near about every country has a ‘national carrier’, that is, airline,which carries the flag of the country, representing the country and has its headquarter in thecountry’s capital city. The terrorist attack in US in September 11 had a great ramification ofprofitability in the global airline industry. There are many companies that are stillexperiencing major losses and threat to their closure. It has not only reduced the domestictravelling of the planes but has also declined the experience of international travelling. At thisstage, there were loads of factors that were disappointing the services of almost all the airlinecompanies but still, the performance of the Singapore Airlines was better than its rivalcompanies after the attack. Hence, higher profit margins and better revenues was reported bythe Singapore Airlines.Economic factors:The economic factors comprises of taxation changes, interest rates,economic growth, exchange rates and inflation ("SIA has lost market share and needs newstrategy", 2018). The demands for the air travel is generally characterized by the incomeelasticity, which must be always high (Belobaba, Odoni & Barnhart, 2015). Hence, as theeconomy of the world is growing, the demand for the air travel too is increasing with thesame speed. Singapore Airlines offered to purchase stakes of about 24 percent in the ChinaEastern Airlines for about 7.2 billion dollars, appeared in vexation since after the majorshareholders criticized their deal as unethical. With the same, the Singapore Airlines has alsobeen plagued by various other economic factors or macro level, such as, the rise in the oil
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document