MN2206K Strategic Management Group Report: SIA Analysis

This report presents a strategic analysis of Singapore Airlines (SIA), covering multiple aspects of its business. It begins with an analysis of the competitive landscape using the SIX forces framework, identifying key issues like the threat of low-cost carriers and the bargaining power of suppliers and customers. A LoNGPESTEL analysis reveals economic factors like fuel prices and currency fluctuations, alongside key trends such as sustainable value creation. The evaluation of SIA's resources and capabilities highlights human resources, innovation through KrisLab, and customer feedback as key strengths, while also acknowledging the imitation potential of some capabilities. The report then examines SIA's sustainability agenda, emphasizing the role of the Board of Directors and the sustainability organizational structure. Recommendations are provided for the top management team, including introducing services for the middle class, prioritizing social media marketing, and expanding globally. The report draws on various academic sources to support its analysis and recommendations.

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

Evaluation of key resources and core capabilities
 The human resources are considered as vital assets of the organisation, supported by staff innovation
programs
 KrisLab has enabled innovation of ideas and concepts, which also inspired the employees and supported
the organisation through proper funding, investments and mentoring
 The feedbacks of customers are obtained to improve the services offered to customers and thus the after
sales services has been considered as a major capability of SIA that is valuable
 The inbound and outbound logistics are major resources and capabilities too, though these are not rare and
can be imitated
 The personalisation of e-commerce has allowed SIA to go beyond the traditional channels of distribution
and deliver airlines services effectively too
 The core capabilities of the organisation represent sustainable practices managed by working with the
Management Committee to promote sustainability

Key components to Singapore Airlines sustainability
 The Board of Directors have worked collaboratively with the Management
Committee of SIA to follow the strategic direction and remain aligned with
business policies and principles
 The sustainability organisational structure helped in delivering the
sustainability related performance with focus on preventing negative impact
on the environment too
 The sustainability management aspects have also enabled SIA to maintain
high level of safety along with the engagement o stakeholders for delivering
a great overall business performance too
 SIA has remained committed to maintenance of corporate governance
standards for enhancing level of professionalism
 The suppliers are treated with respect, fairness and thus greater emphasis is
put to strengthen the relationships with them

Recommendations for the top management team
 The company, being mostly targeted at the premium market segment, must
also introduce new services that could cater the needs of the middle class
segments of market too
 It is recommended to prioritise on the social media marketing for enhancing
the customer base
 The research and development activities must be done for facilitating
innovation and enhance the quality of services, thereby provide better
comfort and convenience to the customers to improve their overall
experience
 The global business expansion is recommended as well for higher revenue
generation
 Singapore Airlines is recommended to provide training and developmental
sessions for enhancing their skills, knowledge and expertise of the employees

References
 Ashrafi, R. and Mueller, J., 2015. Delineating IT resources and capabilities to obtain
competitive advantage and improve firm performance. Information Systems
Management, 32(1), pp.15-38.
 Chang, Y.T., Park, H.S., Jeong, J.B. and Lee, J.W., 2014. Evaluating economic and
environmental efficiency of global airlines: A SBM-DEA approach. Transportation
Research Part D: Transport and Environment, 27, pp.46-50.
 Colin, M., Galindo, R. and Hernández, O., 2015. Information and communication
technology as a key strategy for efficient supply chain management in
manufacturing SMEs. Procedia Computer Science, 55, pp.833-842.
 Dälken, F., 2014. Are Porter’s five competitive forces still applicable? A critical
examination concerning the relevance for today’s business (Bachelor's thesis,
University of Twente).
 Diaconu, L., 2013. THE IMPACT OF THE ECONOMIC CRISES FROM THE XXIST
CENTURY ON THE EUROPEAN LOW-COST AIRLINES’MARKET. The USV Annals of
Economics and Public Administration, 12(1 (15)), pp.91-98.
 Singaporeair.com. (2019). [online] Available at: https://www.singaporeair.com
[Accessed 7 Sep. 2019].

Thank you