Opportunity Analysis of Tiger Air

ASSESSMENT 2
OPPORTUNITY ANALYSIS OF TIGER AIR
1. INTRODUCTION-
Tiger air is a Singapore based firm, which offers several travelling alternatives at very
affordable price to people. The firm claims full satisfaction of buyers as they feel
themselves excellent within the industry. The firm initiated its operations in 2004. The
firm offers flights to some 37 destinations. This study aims to analyze the situation for the
firm within the industry ("TIGERAIR.COM.AU", 2018). The research undertakes
initiatives to know the firm’s weaknesses, strengths, threats existing and also
opportunities available. It will even evaluate the competitors for the firm and their
actions, which the firm needs to look unto in order to attain better market share and
become a market leader.
2. PESTLE ANALYSIS-
a) Political: As per several studies undertaken and the data collected the actual
political ecology of Singapore is very stable, which ultimately ensures growth and
development of any industry within the nation. There exist extraordinary political
stability and no government disturbance can be seen. Here the airlines fix prices
as per their production and marketing costs. Thus, politically Tigerair has a very
good advantage in this nation.
b) Social: Singapore being able to carry a very sound as well as intellectually literate
and mature crowd with more than 92 % rate of literacy provides a good base for
airline firms to work in. This refers to fact that the nation carries very
knowledgeable public. But, this fact has both advantages as well as disadvantages
for an airline industry. Positive factor is that people are very well aware and can
easily compare firms with one other and if they see Tigerair providing an
excellent service within lesser cost they would definitely opt for the service.

Nonetheless it must be noted that people will also always have look out for
another option supplying better service or products in the industry.
c) Economic: Since past several years’ economy of this nation “Singapore” has been
seen in a very good position. A decent as well as healthy economy truly permits
its players in the market to play with the prices. If rate of inflation in any nation is
constant, then firms are able to maintain very cost effective prices. Nevertheless
in situations of economic crises such effectiveness of cost might also harm the
firms and it then becomes hard to survive for longer time. Tigerair is again lucky
to be a part of nation with economic stability.
d) Legal: Effectiveness of cost of any firm results in lesser wages for its staffs. This
is because lower cost prices of goods means good manufacturing cost for the
specific goods or service is significantly lower. The firm Tigerair apparently faces
a risk or challenge in this area, good wages and salary is actually a very good
display for staff retention. Thus, Tigerair requires concentrating on this part.
e) Environment: As per data and collected information from several sources
provided by the firm it actually appears that Tigerair is undertaking satisfactory
steps to manage and properly control its carbon print on earth and thereby works
in an environment friendly way. Nevertheless there forever exist a space for
growth and improvement.
f) Technological: Scholastics study says that constant growth and improvement is
supreme for survival of any firm. Whether firm is presently doing well or not, it is
of major importance that they search for better venues as well as services to
maintain retention of customers. Technologically Tigerair still needs to enhance
them and upgrade to a good extent (Dominici, 2009).
3. COMPANY, CONSUMER AND COMPETITOR ANALYSIS-
Porter's 5 Forces Model
a) Supplier’s bargaining power- airline industry seems to be very concentrated by
its suppliers. This makes it hard for the rivals to workout leverage on their

suppliers and then attains lesser costs or even works one supplier in contradiction
of another. The danger of forward integration in this industry is very low. Power
of suppliers additionally reduces the capability of rivals to attain higher profits.
b) Customers bargaining power- Buyer’s bargaining power are the 2nd most
important fact to be realized. If a vital buyer power exists, in form of lesser prices
they can accumulate all through the industry returns. Also switching cost is
recognized by several factors like the power of buyers, accurate volume of
purchase, standardization of the good, elasticity of demand, band’s identity, and
also the quality of service provided. When customers choose any specific airline
they are accessible to several alternatives. Currently, information of pricing is
easily accessible and simpler to equate because of extensive use of Internet.
However, Tigerair can try to drop or even increase its prices to uphold
competition with some other service provides in the industry (Gordon, 2012).
c) Threat of New Entrants - If any new competitor arrives within industry as well
as even if some reduce the industry returns with an aim to pass along the value to
purchasers by commencing inferior prices to upsurge competition cost and like to
attempt for a new possibility in the business it is called danger of a novel Entrants.
Economies of scale, Capital needs, value of a brand and also switching costs are
some vital elements through which a firm can recognize the amount of threat from
a newfangled entry. It actually is very easy to have access to capital within airline
sector. Several banks that obligate airlines make even credit extensions, and in
return they attain additional facilities as well as substitute chances within the debt
plus equity sector for levitation of funds or capital.
As it's comparatively easy for all the airlines that are weaker to attain the credit,
this sector has actually now become saturated. Within this industry it seems to be
very important to carry a good and everlasting brand identity. In airline sector a
type of hub scheme heightens the barriers towards entry (Woodall, 2007).
d) Threat from Substitute goods- Accessibility to substitutes seems to be a major
element that impacts the level of competition in airline sector. Most thought-
provoking thing being the fact that in this industry price of substitute and also the
propensity of purchaser towards the substitute affects the level of competition.