Singapore Airlines: Strategy & Response

This assignment examines Singapore Airlines' mission, vision, core competencies, and competitive advantages. It analyzes the company's strengths, weaknesses, opportunities, and threats (SWOT) in light of the Asian economic crisis and its impact on the airline industry. The analysis evaluates the appropriateness of Singapore Airlines' strategic response, including launching a new product line, to mitigate losses and maintain market competitiveness.

Running head: SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
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1SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
Table of Contents
Introduction................................................................................................................................2
Vision of the Singapore International Airlines..........................................................................2
Mission of the airlines................................................................................................................3
Core competencies of Singapore International Airlines............................................................4
Strength of the of SIA................................................................................................................4
Weaknesses................................................................................................................................5
Opportunities..............................................................................................................................5
Threats........................................................................................................................................5
Appropriateness of SIA’s Strategic Response...........................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

2SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
Introduction
Singapore Airline got recognition as being one of the world’s premiere airlines. It has
been voted as the best Airline in the world and in the year 1995, Singapore Airlines was
regarded as the most admired firm by the magazine of Asian Business. However, the
Economic Crisis of Asia affected most of the Airlines in Asia (singaporeair.com, 2017)
Singapore International Airlines was also affected by this crisis. However, the airlines,
decided to take up acted as a response to this crisis. The airlines adopted strategic
management forces in order to comply with the economic crisis when the airlines decided to
launch its biggest product. This lead the airlines to a biggest dilemma about that its
competitors are facing harsh crisis. Against this background, it is important to note about the
mission and vision of the company along with its core competencies. The way the Air Asia
has responded to the crisis as well comes under the strength, weakness opportunities and
threats of the company. By taking into account these perspectives, it is important rather to
determine the policies of the organization and how it has tackled the problem of the Asian
crisis when the other Asia Airlines suffered tremendous loss (singaporeair.com, 2017).
Vision of the Singapore International Airlines
“Singapore Airlines has a responsibility not only to be an excellent Singapore
Airlines has a responsibility not only to be an excellent company, but also to be an excellent
citizen of the world by enhancing the lives of the people we touch. With that aim in mind, we
have made many commitments to the arts and education, to our communities, and the health
and welfare of our country’s citizens, and those in countries we fly to. With this goal in mind,
we’ve also made a strong commitment to preserving the environment – and our world for
future generations”. Having the aim in mind, the airlines have built commitments to the
education and arts, to the communities and welfare and health of the society and the citizens

3SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
of the countries where the airlines fly. Having these improvements in mind as well as the
goals, the airlines of Singapore has also made stronger commitments in order to preserve the
environment and the world for the future generations. The organization has also strived for
the safety goals (singaporeair.com, 2017). The safety vision is easily available to the public
so that they can understand about these important safety goals. The vision therefore, of the
airlines industry of Singapore is to become the competitive and foremost aviation group. It
looks forward to become passenger focused, flight catering in a best way in the competitive
field.
Mission of the airlines
The mission of the airlines are “Offer superior service in every area, at
competitive price, yielding a surplus to finance expansion and modernization, and provide a
satisfactory return to shareholders. All this, while keeping employees satisfied, happy, and
motivated.”The airlines of Singapore are an international company, which is dedicated to
provide transportation services by air having the highest quality and to enhance the returns
for the benefits of its employees and shareholders. Its mission is to become the leading
aviation group in Asia by rendering reliable and safe passengers the good services
(singaporeair.com, 2017).
Core competencies of Singapore International Airlines
Having stronger capabilities and the core competencies, the airlines is
becoming strongly competent. Firstly, the airlines are providing service which is based on the
excellence of being cost effective. During the economic crisis, the airlines of Singapore has
reduced 2.5% of its cost and increased its service to the other countries (singaporeair.com,
2017; Drucker, 2017). This important core competency is being supported by the excellent
management though the means of communication and motivating the employees in order to

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build the reputation of the Singapore Airlines Industry. Airlines have made itself stronger
along with the mission of the industry. The Airlines through providing excellent services
have a built a long- term relationships. The beautiful designs of the services, total innovation
of the airport, the employees and the staff development are the important resources of the
Singapore Airline Industry are slowly building up the core competencies of the airlines
industry (Dermol, 2012; Om & Yu 2012).
Other than the resources, the brand name of the airline industry has made them
famous and a core competent due to the availability of its resources. The employees who are
considered as the most important resources and the employees who give helpful assistance to
the company during the crisis made the airline industry to gain its core competency (Drucker,
2017).
Strength of the of SIA
 Singapore airlines are bearing strength that it is having the second
largest strongest fleets of aircraft in the industry of airlines. The
airlines are having a strong support from the government of Singapore.
The major strong points of the company is the brand image, size and its
positioning strategy. The company for the sake of its brand image
earned the annual profit of 340 million in the dollars of Singapore.
 The international airlines of Singapore took risk during the Asian
economic crisis which stated, the airlines in a different position was
attracting the wealthy Europeans and the Americans who are willing to
pay their services and seating at the premium upgrade or else the
airlines feared that it would suffer loss. Despite the crisis, the flight
was known for its excellent and top services of hospitality. It has

5SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
provided a satisfactory base to the customer and the desired
passenger’s airline. The strength lies in the fact that, it has pioneered in
the conveniences of the customers and it is being the first flight, which
has delivered hot meals to the customers (singaporeair.com, 2017).
 The strength is not measured in the context of capitalization. The brand
of Singapore Airlines is described as the most popular brand in the
industry of airlines. The company has secured its position as the
leading brand of Airline industry through the utilization of the business
model as a “first mover”. For example, it is being the foremost airlines
that it offers refreshments in free and again it is being the first airline to
give the delivery of the new A380 passengers plan and the airline
industry has always made sure that it is one step ahead of the
competitors.
Weaknesses
 The weaknesses of the Singapore Airlines are it costs lot of money from its customers
traveling from the Singapore Airlines. The new product launch and services would
cost more money from its customers as these have been considered as expensive
services. The Ticket price from Kolkata to Singapore is 48,780 in Indian currency for
each person. It is evident from the comment of the Chia Cheow Ming of Tal Lee
Securities in Singapore. He commented that if Singapore Airlines could attract
wealthy Europeans and Americans who are willing to pay for the premium services
then the company would get chance not to face the loss.
 After the Asian economic crisis, the turnover ratio has been dropped down in the
Singapore Airlines. The company was compelled to give unpaid leave to its cabin

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crew for managing the economic crisis in a cost-cutting measure. The company
though did not say how many employees have accepted the offer of unpaid leave.
However, the Airlines have performed well in last few years.
 The other weakness has been created due to growing competition in the airlines
market (Adl, 2013). As the competition is increasing, the market share of the
Singapore Airlines is less. The current market share of the Singapore Airlines is 11.07
million dollars. There are other Asian Airlines companies in the Asia-Europe market,
like, Thia Airways, Cathay Pacific, Air China, Korean Air, Malaysian Air, Air India
and All Nippon Airways. However, the overcapacity in the markets, the SIA had to
make some adjustment. The company could bring more new resources as like other
companies would be unable to imitate the resources.
Opportunities
 Singapore Airline has huge opportunities to expand its market into Middle East,
China and India and it is providing services across the Asian region (Serpen, 2013).
By the end of 2014, the SIA had made a joint venture with Tata group that has aimed
to build full service airlines. India is the strategic market that the SIA group wanted to
enter. However, the A380 is servicing across Paris, Frankfurt and Zurich.
 Singapore Airlines could have opportunity to create much deeper partnership. This is
the area, which could be improved and it was traditionally a weakness. However,
under Mr. Goh, the CEO of the Singapore Airlines, new partnership was being made
apart from enlarging various existing partnerships. However, the problem was most of
its partnerships were not at all comprehensive. The data has shown that out of 24
partners, only 11 are serving for Singapore Airlines.

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 The other opportunities are that it could create an excellence by building airports,
maintaining airports and planes, transporting cargos and operating kitchen. The
company could create marketing strategies in these areas to attract more customers. In
the growing competitive market, the company needs to provide its customers more
opportunities to retain its excellent impression in the market. The company has to
provide new services that would impress the domestic and international customers.
However, if the company provides new opportunities, the domestic as well as
international customers would be attracted towards its services.
Threats
 The threats of the Singapore Airlines are competition and price hike. As there are
other airline companies in the airline market beside Singapore Airlines, like, Cathay
Pacific, Thai Airline, China Southern Airline, Qantas, the competition rate is much
higher in the market particularly for this company. However, the SIA’s has
continuously introduced new products like A380 and 777-200ER. Although, other
airline companies have also developed new products including premium products,
that could create a threat for the Singapore Airlines (Laudon & Traver, 2013). The
growing competition in the market is one of the crucial threats as well as weakness for
the company.
 As the cost of the fuel has been increased, that ticket price has increased in massive
way, which could affect the business in negative way. However, the company is
helpless in this situation. The company has increase its flight charge in order to gain
profit. However, the Singapore Airlines Company could opt for the low cost flights in
addition, the company should offer some low cost flight to its customers in order to

8SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
retain in the competitive market. This offer could minimize the negative effect of the
price hike.
Appropriateness of SIA’s Strategic Response
The Singapore Airline has announced to launch its biggest product. This is
appropriate decision though the company has faced severe loss (Bisbe & Malagueño, 2012).
Due to increasing rate of competition in the market, the decision to launch new product is
perfect for facing the other competitors and drawing new customers. However, the loss
happened due to Economic Crisis in the Asian region and that could be the reason for
company’s loss. It is expected that the company could overcome the loss after the time of the
Asian economic crisis. Analyzing the weaknesses, threats and opportunities it could be said
that the new product launch is necessary in the growing competitive market. However, new
product launch will eventually help to retain the company in the market.
Conclusion
It can be concluded by stating that the mission and vision of the Singapore Airlines
has been discussed along with its core competencies and it is having a great competitive
advantages in the market. The company is one of the largest companies in the market and it
shares excellent vision and mission that aims to provide excellent services to all its
customers. The strength, weakness, opportunities and threats of the Singapore Airlines has
been discussed to determine the appropriateness of the company’s strategic response. The
way the company has handled the Economic crisis in the Asian region, launching new
product in the market would affect in minimal. However, the positive effect of the new
product launch would create a long-term policy for the company. By taking into account
these perspectives, the assignment has determined the policies of the organization and how it

9SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
has tackled the problem of the Asian crisis when the other Asia Airlines suffered tremendous
loss.

10SINGAPORE AIRLINE’S RESPONSE TO THE ECONOMIC CRISIS
References
Adl, A., Ashouri, M., Jamalpour, G. and Sandoosi, S.M., (2013). Overview SWOT analysis
method and its application in organizations. Singaporean Journal of Business,
Economics and Management Studies, 1(12), pp.69-74.
Bisbe, J. and Malagueño, R.,( 2012). Using strategic performance measurement systems for
strategy formulation: Does it work in dynamic environments?. Management
Accounting Research, 23(4), pp.296-311.
Coleman, J., (2013). Six components of a great corporate culture. Harvard Business
Review, 5(6), p.2013.
Dermol, V., (2012). Relationship between mission statement and company
performance. Annals of the Alexandru Ioan Cuza University-Economics, 59(1),
pp.321-336.
Drucker, P.F., (2017). The Theory of the Business (Harvard Business Review Classics).
Harvard Business Press.
Laudon, K. C., & Traver, C. G. (2013). E-commerce. Pearson.
Oum, T.H. and Yu, C., (2012). Winning airlines: Productivity and cost competitiveness of the
world’s major airlines. Springer Science & Business Media.
Serpen, E.,( 2013). Strategic planning for airlines. EVP Intervistas Consulting Group, 35.
singaporeair.com, S. (2017). Singapore Airlines Official Website | Book flights from India.
[online] Singaporeair.com. Available at:
http://www.singaporeair.com/en_UK/in/home [Accessed 28 Oct. 2017].

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