University Assignment: Comprehensive Analysis of Singapore Airlines

This report provides a comprehensive analysis of Singapore Airlines, examining its business operations through the lens of various management tools. It begins with an introduction to the airline, including its history, mission, vision, and core values. The core of the report applies analytical frameworks such as PESTLE and SWOT to assess the macro-environmental factors impacting the airline and its internal strengths, weaknesses, opportunities, and threats. Furthermore, the report utilizes Porter's Five Forces to evaluate the competitive landscape of the airline industry. The analysis identifies key challenges such as domestic market share growth and emerging competitors, as well as opportunities stemming from strategic alliances and market expansion. Finally, the report concludes with management recommendations to address identified weaknesses and threats, offering strategic insights for the airline's future development and sustained success in the global market.

Running head: COMPANY ANALYSIS
INTRODUCTION TO MANAGEMENT
Name of the Student
Name of the University
Author note

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Introduction
Singapore airlines is the national airlines of Singapore. It is mainly owned by the
government of Singapore with Temasek holding company, which holds 56 percent of the
company shares. This airline has international presence and provides services in nine different
countries. However, the prime focus is being Australia and other Asiatic countries. The service
was founded in 1972, and after so many years of struggles and success, the organization has
consolidated its position as one of the most successful and biggest airline services in the world
(Singapore Limited, 2018). The vision and mission statement of the organization also focuses on
its target of global domination. According to the vision statement of the organization, it not only
want to become an excellent airline in Singapore or in world but also want to become a
responsible world citizen by touching every lives. They have several other commitments such as
arts, education health, and welfare of each country they fly to. On the other hand, their mission to
continue the high quality service and provide maximum returns to their shareholders and to their
hardworking employees. The company believes in sticking to its core values and follows all of
them while providing quality service to the world population (Singaporeair, 2018). Pursuit of
excellence, safety, concern about their staff, customer, integrity and teamwork are few of those
core values that this organization follow to achieve ultimate success.
The prime purpose of this assignment to apply different company analysis tools to find
out the degree to which, this company follow its mission, vision, and the core values. The
assignment will be discussing the Opportunities and threats of this company has, with a detailed
analysis of PESTEL and porter’s five forces to analyze the company status and developmental

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goals. Further, the assignment will discuss the four management related recommendations to
overcome the weaknesses or threats in near future.
PESTLE analysis
PESTLE analysis one of the marketing framework that is used to analyze and monitor the
macro-environment or the external marketing environment. These factors have major impact on
the organizational market reputation. The result of this analysis is used to identify the threats and
weaknesses of the organization. In the term PESTLE, P stands for political, E stands for
economical, S stands for social, E stands for environmental and L stands for legal factors. The
combined result of these micro-environmental factors determines the success of any
organization. As political stability, favorable economic condition, top technological support,
favorable weather or environment to work and legal or governmental policies and actions have
significant effect on the company’s positive image in the market (Srdjevic, Bajcetic & Srdjevic,
2012).
PESTLE analysis of Singapore airlines in presented below.
Political
Political support has a major impact in any airline services success or failure as the
national flag carrier airlines has responsibilities more than any other private airline company.
The national airline company gets the opportunity to utilize the capital headquarter of the
company and further is given all the profits and benefits of any national airlines in the country or
outside the country. However, loss of this national status can shatter the organization within few
months as it occurred with the Italian airlines company Alitalia in 2000s, when the national

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status was withdrawn from the company (Baum, 2012). The Singapore airlines is currently the
national flag carrier airlines and was given all the benefits of a national airlines.
Economic
Airlines operates in national and international boundaries and therefore the economic
boundaries are decided by the economy of those countries. The Singapore airlines economic
status is defined by the countries it provides service and the level of resource intensity is the
prime factor that affects the economic stability of this organization. Price hike of crude oil,
political unrest in Middle East and the concept of ‘Arab- spring’ has increased the price of fuel
oil for airlines. However, most of the airlines are managing these extra amount by increasing the
prices of tickets, the Singapore airlines has not increased the ticket price. This because of their
premium ticketing service and values (Ancell, 2016).
Social
The Singapore airlines is serious about its social responsibility and affects a large
population worldwide by providing cheap flights to regions where it is difficult to travel. By
doing so, the airlines has increased the frequency of arrival of tourist and therefore, the economy
of those places has improved. Creating different travel consumer preferences has increased the
flow of travelers of this airline, as there are maximum amount of middle class travelers, who uses
this airlines to travel to different portions of the world. Hence, this premium airline is bearing
minimal profit to provide cheap service to these middle class customers.
Technological

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Technological changes has been one of the major strengths of the Singapore airlines as
they are the pioneers in creating young fleets and luxurious cabinets. Therefore, the Research and
development or R & D department of this airline are keen to produce different innovative ideas
that can boost their sales and evoke a sense of security in passengers (Ancell, 2016).
Legal
There are different aspects of political or legal frameworks as different government
utilizes the national carrier aviation organization depending on different aspects. Therefore, the
benefits or loss of the aviation company depends on the policy of the government. After the
terrorist attack on the Singapore airlines on 11 September 2001, there are different changes in
passenger screening has been made that is beneficial for the entire organization (Nandha, Brooks
& Robert, 2013).
Environmental
The passengers as well as the organization, both are concerned about the environment
and therefore, being environment friendly is one of the prime mission of this organization. The
Singapore airlines is already started the green issue in the organization to utilize nature friendly
products in research and development and other departments.
Opportunities and threats of SWOT
SWOT analysis is framework that is used to analyze the external as well the internal
strengths, opportunities, threats and opportunities of any organization. These helps by making
the organization inevitable in the market competition. Depending on the PESTLE analysis of the
organization, the Opportunities and threats are going to be discussed in the following section

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Threats
 The prime threat of the Singapore airlines is the inability to grow its domestic market
share in recent years. The company is failed to recruit additional passengers in past ten
years as the percentage of the passenger load factor has been increased by only 1.2
percent in august 2017 and the maximum demand was in India 75.8 percent. On the other
hand the home market has increased only by 2 percent as the market is already matured
and the longer route flights have seen no improvement in last two or three years
(Singaporeair, 2018).
 The organization is struggling to keep its reputation alive in its home country as there are
several other private airlines providing bit improved services and people are diverting to
these airlines for their better service. The organization is focusing on short halt carriers
that has minimized the profitability of the organization. However, the south Asian market
is not responding according to the expectation of the company.
 The third threat for the organization is the inability to understand the market, which is
profitable for the overall business of the organization. Analysis has been shown that the
North American market is helpful for the organization and has several opportunities that
can increase the total business by 20 percent. The company used to serve for hubs such as
Los Angeles, Las Vegas, San Francisco, Vancouver, Chicago and New York, however
currently it serves in four of these American hubs. This has hampered the organizations
reputation in those regions. There are generation of different Middle Eastern airlines that
are emerging as bigger threats such as Etihad and Emirates and several other airlines that
has adopted similar business models and market positioning strategies as Singapore
airlines (Fickling, 2018).

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Opportunities
 Several shining opportunities can help the organization to achieve success in near
future. The Singapore airlines is the member of the star alliance group, which is the
world’s largest and most successful airline strategic group. The benefit of this is
alliance is that the Singapore airline can get access to resources form 24 other partner
nations. On the other hand, these partner companies deal in regions, which is far from
the region of Singapore airlines. Thus, the Singapore airlines can become partners
with those airlines to increase their reach in market (Riwo-Abudho, Njanja &
Ochieng, 2013).
 Although the organization is struggling in regions such as North America and South
East Asia, several other regions can be utilized as the new growth opportunities, such
as Indian market. There are several other Indian companies that has entered in
alliance with the Singapore airlines and these organization alliance will be start
operating from October 2014 (Riwo-Abudho, Njanja & Ochieng, 2013).
Porter’s Five Forces analysis
The porter’s five forces framework is a marketing tool that is used to analyze the market
competitor of any organization in the market. The concept of five forces is being drawn from the
Industrial Organization o IO economics to determine the market competition intensity and
therefore decides the attractiveness of any industry according to its profitability. In the year
1985, Michael Porter identified five factors that affected the performance of different companies
within boundaries of market, the threats to newer companies, the threat of substitute companies
and products and the bargaining power of buyers and suppliers (E. Dobbs, 2014). To predict the

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success of the company, there are several factors, which is important for any company to apply
these factors for ultimate success.
The threat of new entrants
The threat of new entrants in the airlines industry is weak and is centered only in the
domestic airways. The Long haul airlines are quite saturated and only two or three national
carriers operate in this industry. These two or three national carriers also enjoys all the national
government support and represents the economy. Therefore, it is evident that the air traffic is
generated due to the competition in the national airways. However, there are evidences of failure
of new airlines in different regions as they are not been provided with proper regional hubs or
they are lagging behind the congestion of Singapore skies. Therefore, it is evident that the new
airlines are weak threats to the established airline companies (Fu & Oum, 2014).
The rivalry intensity
Rivalry within an organization is determined by the competition in business, market
share, and development of newer and better idea, providing quality service to the customers and
contributing to the national economy. According to the Porter, in the business with high rivalry,
the organizations should keep their concentration on the changes of market to understand the
market demand and respond according to that need. In the business of airlines, the biggest rivalry
occurs due to operation sin routes, which are famous, and occupies higher level of market
dominance. For example, the route, London to Paris to New York to Frankfurt is the best route to
operate in and therefore this route contains the major rivalry. Any new airline service cannot
enter this route, as existing airlines cannot afford to delay their flight due to air traffic. Every

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airline flying from this route tries to earn more passengers by reducing their ticket price, elevate
the level of service or by flying punctually (Kieskamp, 2015). The Singapore airlines is destines
to provide all these factors in every route they fly from and therefore, they are dominating the
kangaroo route (Southeast Asia, Australia and New Zealand) in recent years.
Threat of substitute service
According to the five forces of Porter, in a competitive market, there is always a risk of
market loss by market substitutions. These market substitutes of products or services are
responsible for market loss, decrease in the company revenue and risk of further growth. In the
case of Singapore airlines, there is also a threat of market substitute in its shorter haul route. The
longer haul route is saturated and the organization is a reputed name in that route. However, due
to increasing competition in the short haul route, there is threat of market loss in the national
airways.
The bargaining power of suppliers
In any successful business, there is a major role of suppliers as they are the one, who
provide the organization with necessary raw materials for their product or provide them with
working labors to achieve or meet their target. In case of Singapore airlines, there as a major
group of suppliers in which, Rolls Royce, general electric and Pratt and Whitney provide
engines, Boeing and Airbus provide the organization fleet. However, as the organization has
minimal number of suppliers, the supply of materials depend on the convenience of the supplier
(Ahern, 2012).
The bargaining power of customers

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According to the porter’s five forces law, the bargaining power of customers is much
more powerful than that of the suppliers as the image of suppliers to the customers is at stake
while serving to powerful customers. In case of Singapore airlines, the power of customers are
greater than that of suppliers as every airline has their own booking websites. Minimal lack in
punctuality, quality service and other aspects can make the organization loss few of the quality
customers. Therefore, the Singapore airlines should focus on customer reviews and feedbacks to
understand the customer demand and trend (Wang, 2014).
Recommendations
The Singapore airlines is a string name in the airlines industry and the brand name holds
a strong position in the market. Therefore, there are few recommendations that should be
implemented by the organization to become more successful.
 The organization should utilize the airbus technology to start longer haul services prior to
their rivals. Airbus is quite famous in the passengers and therefore, utilizing that
technology in the modern aircrafts is useful for the organization.
 It should compete in the shorter haul market to establish the younger wing of the
company.
 The quality of the service and the brand name should be maintained.
 Should take inspirations from other airways in providing quality service and earning
revenues at the same time.
These recommendations are made based on the status of the company. The reputation of
Singapore airlines is much higher in the southeast Asiatic region. However, the market
situation can be changed as the organization is facing tough competition form the newcomer

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companies in the national airways. Hence, the management should focus on these
recommendations to earn market attraction and increase its market reputation and brand
name. Teaming up with newer competitors for the expansion of the company in shorter haul
market will be helpful to diminish the national challenges.
Conclusion
The Singapore airlines is serving the nation and the entire Southeast Asian region from
more than 20 years and the market reputation of the company is the biggest positive point for
customer attraction. This assignment was to analyze the company business policies and market
position of the company. The analysis frameworks, used in this assignment to understand the
market profile of the company was PESTLE analysis, in which political, economic, social,
technological, legal and environmental factors are taken into consideration. Further based on the
PESTLE analysis, opportunities and threats of SWOT analysis was performed. At the end, the
porter’s five-force analysis was carried out.

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References
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Ancell, D. (2016). Clipped wings: corporate social and environmental responsibility in the
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Riwo-Abudho, M., Njanja, L. W., & Ochieng, I. (2013). Key success factors in airlines:
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decision?. Journal of Air Transport Management, 37, 53-59.

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