Innovation & Change: Business Environment Analysis

Running Head: INNOVATION & CHANGE
Innovation & change
Student’s Name
University Name
Author’s Note

2
INNOVATION & CHANGE
Table of Contents
2. Discussion....................................................................................................................................3
2.1 SWOT Analysis.....................................................................................................................3
2.2 PESTEL Analysis..................................................................................................................5
2.3 Business Environment Analysis.............................................................................................6
2.3.1 Business Situation in Singapore Aviation Industry in the initiation phase.....................6
2.3.2 Comparison with worst airports of the world..................................................................7
2.3.3 Effective Change Management of Changi Airport..........................................................8
3. Recommendations and Conclusion............................................................................................11
Reference List................................................................................................................................13

3
INNOVATION & CHANGE
1. Introduction
Changi Airport Group (Singapore) Pte. Ltd. operates and manages Changi airport in Singapore.
It engages in airport operations and management, air hub development, commercial activities,
and airport emergency services. The company also invests in and manages foreign airports.
Changi Airport Group (Singapore) Pte. Ltd. was founded in 1981 and is based in Singapore
(Setiawan et al. 2018). High air traffic and the strong culture for providing the best in class
service to the customers has paved the way for the development of Changi airport as one of the
leading global airports. Now, it is one of the biggest international air hubs of Asia.
2. Discussion
2.1 SWOT Analysis
Strengths
Changi Airport of Singapore had faced the biggest challenge in the financial years 2016-
17 and 2017-18. This is because; the Changi Airport is heavily dependent on the international air
traffic. On one hand there were the rising costs of fuel, accountable for surging up air fares. On
the contrary, high competition among the airline companies of South Asia, Middle East and
European domains was waged with an eye on driving down the fare prices. The latter proved to
be favorable for the organization since opened the fourth terminal promptly in the year 2016
having an internal handling capacity of 16 million passengers every individual year (Lin 2019).
This change accounted as one of the major strengths of the company. Cheaper airfares
encouraged many of the Asian passengers to ferry for America or European nations. On top of
that, the newly emerging airline agencies have been boosting the number of individual
passengers which were handled by the Changi Airport. The high density of passengers to or from

4
INNOVATION & CHANGE
Jakarta, Hong Kong, Bangkok or Kuala Lumpur helped in increasing the number of passengers
for Changi Airport.
In the upcoming 5 years, the strategic importance of Chang Airport will further increase
when decisively; the Airports Authority of Singapore will make Changi, one of the most
important international hubs (Kılkış and Kılkış 2016). The authorization of the development of
the fifth terminal which is propose to be functional within a span of 5 years had taken a leading
role in the development of the strategic importance of the Changi Airport which will be able to
cater to 50 million passengers at a time within a span of 5 to 7 years from now.
Weaknesses
One of the major weaknesses of the strategic management of the Changi Airport is that
none of the designers had taken an integrated approach to make the design and connectivity of all
the 4 terminals of the Changi airport simple and highly communicated. The completely new
orientation of the Changi airport makes the passengers confused and overwrought when they
have to avail the fourth terminal. That is why, Chaouk, Pagliari and Miyoshi (2019), thinks that
although Changi airport have been able to accommodate 19 million more passengers with the
emergence of the 4th terminal, the inconvenience caused to the internal business class passengers
in using the terminal, will affect the decision of the major international airlines using the Changi
airport.
Opportunities
The international association for air transport is supporting the instrument of tax for using that
Changi Airport by passengers, in the future. The Airport has been allowed to impose increment
in taxation by 10 to 15 dollars, for long distance air travelers (Graham and Morrell 2016). This