Strategic Management: Key Trends, Resources, and Recommendations for Singapore Airlines

Strategic
management

6-forces analysis
 The Low Cost Carriers offer new airlines services at lower cost, which targets the cost
conscious travellers and can be a major threat for SIA.
 As SIA possess a good brand image and reputation for its quality of services and
convenience offered, the threat of new entrants is low
 The company has delivered quality flight services and innovative entertainment
system, which allowed for gaining good reputation and image within the concerned
sector, thus the threat of rivalry in business is medium
 SIA focused on the aspects of comfort and time while travelling and targeted those
passengers, less concerned about the service cost, due to which, the threat of
substitutes is low
 the customers’ power of bargaining is quite high considering the fact that consumers’
behaviours change from time to time
 The bargaining power of suppliers is high as well, because SIA has maintained good
relations with Airbus and Boeing, which supplied the aircrafts and other materials
 The power of other stakeholders is low because SIA has managed intervention of
policies properly and managed the policies, principles and agreements for successful
business functioning.

Long PESTEL and identify key trends
 The economic factors are fall in the fuel prices of aviation turbine while the
currency fluctuations have also contributed to the growth in economy
 The Chinese economic growth ahs favoured SIA’s ability to acquire labour
from foreign nations and established a cooperative culture
 SIA prioritised on advanced technologies’ implementation and facilitated
innovation to deliver a great experience to the passengers
 The implementation of lawsuits and management of legal obligations have
enabled SIA to focus on protection of environment as well as overcome the
pricing strategies
 The key trends include sustainable value creation and aligning with the
interests of shareholders
 The issues include the rise in fuel prices and fluctuations in currency value