The Strategic Management

Strategic
Management

Strategic Management 1
Contents
Six forces model.........................................................................................................................2
Pestle analysis............................................................................................................................2
Resources...................................................................................................................................4
References..................................................................................................................................5

Strategic Management 2
Six forces model
The threat of new entrants: The threat of new entrants is comparatively weak in the
aviation sector. It is due to the requirement of the huge capital outlay by the industry and the
market is fairly drenched. On the other side, there is great blocking in the substantial airports
and more prominently the administration conveys superior gain of business processes
(Engert, Rauter, and Baumgartner, 2016).
The intensity of rivalry: The high intensity of rivalry is faced by Singapore airlines. There
are complete facility airlines in the market which function in the niche markets. The price
wars are also encountered among the severe competing airlines.
The threat of substitute services: The acute assessment of the factor imitates that threat of
substitutes is moderate in the case of the Singapore airlines. There are several low-cost
transporters functioning in the aviation industry as there is an option of the very great speed
of railways services. Other than this, there are also several progressive communication
technologies which pose the threat of substitution to the transporter services of the
organization.
The threat of complementary products: The threat of complementary products for
Singapore airlines is moderate. There are several complementary products like the increasing
price of fuel, increasing rates of taxis and prices of eatables.
Bargaining power of the customers: It has been deliberated that the bargaining power of the
customers is moderate as the cost of interchanging to other company is fairly low. Singapore
airlines have initiated various loyalty reward suites which have been successful in enhancing
customer loyalty. It has even helped the company to attain a great number of customers.
Other than this, the internet has empowered customers to equate the prices of the services
provided by diverse organizations and pick the best among all (Baumgartner, and Rauter,
2017).
Bargaining power of the suppliers: The bargaining power of the suppliers of Singapore
airlines is quite robust. Although, there is effective duopoly of several Boeing and Airbus for
several planes. There is an uncontainable cost of the fuel which increases the influence of the
suppliers.