Expansion of Tiger Scoot in London: Value Chain Analysis and Competencies Evaluation

Business Management
and
Strategic Management

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Contents
INTRODUCTION.................................................................................................................................2
Value chain of Scoot.............................................................................................................................2
Competencies of Scoot..........................................................................................................................4
Macro environment analysis of London................................................................................................6
Strengths of top three budget airlines in UK..........................................................................................7
Mode of Entry.......................................................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................10

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INTRODUCTION
All across the globe, there are many multinational firms that are expanding their business in
various parts of the world. There are many factors that need to be considered by the company
in the process of change. In aviation industry there are many companies expanding their
business into new routes. These expansions have greater impact on the business operations
and functions. Finding new routes that could be valuable for the company needs to be found
out by evaluating various operational factors (Lawton, 2017). The expansion should only be
made after analysing the environment as well as the competencies it has. Tiger scoot is one
such company that is expanding its business in European region. It is a low budget Airlines.
London is the city having large numbers of people from Asia and other parts of the world.
Scoot is going to expand in London market by starting a direct flight services from Singapore
to London. This plane will fly from Singapore to Gatwick airport in London. They might also
select the alternative route that is elaborated in the later part of the report. This provides an
excellent opportunity for Tiger Scoot to expand its business in London.
This report evaluates the external environment of London as well as its competencies for
grabbing the opportunities in this market. It also analyse the value chain of Scoot as well as
the competencies that its competitors have. The competencies that will be required by Scoot
to tackle the competencies of their competitors as well as that of new incumbents have also
been showcased. Report also analyses the impact of Scoot’s expansion on its parent company
Singapore Airlines. At last the recommendation for the entry strategy has been provided.
Value chain of Scoot
Value chain analysis is an effective model for understanding the impact of the company’s
operations. This model provides details about internal activities and processes of an
organisation (Holloway, 2017). The value chain analysis of scoot is as follows:
Primary
activities
Analysis Strength/Weakness
Inbound
logistics
The inbound logistics operations are complex that
also includes timely delivery of fleets. This
company is known for its fast passenger services.
Strength
Outbound
logistics
Outbound logistics of the company is also complex
but the company derives its value in the primary
Strength

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operations through effective handling of the
customer’s luggage, facilities planning, passenger
service system, flight scheduling, yield
management system etc.
Operations The scope of operation can be vast as company
currently operates in 18 destinations. Its
competitive advantage in operations is by providing
enhanced security for customers, fast ticket booking
system, online booking as well as other services.
Strength
Services Scoot provides its customers with loyalty cards that
add values to their services. This helps in attracting
new customers and at the same time retains the old
consumers. There provide services for particular
class in the society hence may lag to attract the
larger part in the market. Their service quality is
also relatively poor than its rivals.
Weakness
Marketing and
sales
Scoot takes use of various types of marketing
communication mediums so as to have direct
interaction with their customers. They utilises
marketing mix like TV advertisements, Social
media, public relations, events and experiences,
direct marketing as well as sales promotions.
Strength
Support
activities
Analysis Strength/Weakness
Procurement The whole procurement process of scoot is
followed with strict compliances of rules and
regulations. Most of them are automated. These
standards have ensured that they keep themselves
apart from various fraudulent activities that might
keep them away from any kinds of uncertainties
that might have negative effect on the Scoot.
Strength
Technology
management
In-flight systems, baggage tracking system,
computer reservation system, yield management
system, flight scheduling system etc. are used
Strength