StridesJet Airline Marketing Strategy and SWOT Analysis Report

This report provides a comprehensive market analysis of StridesJet, a Singapore-based low-cost airline. It begins with an abstract and table of contents, followed by an introduction outlining the assignment's focus on market analysis strategies, including SWOT analysis and marketing mix, to achieve a 10% market share in Hong Kong and Shenzhen within 12 months. The discussion section delves into StridesJet's strengths (strategy, spending rules, and frequent flier program), weaknesses (capacity issues, poor margins, and perception), opportunities (preference for comfortable air travel), and threats (high competition and initial growth issues) based on a SWOT analysis. The report then details the marketing mix, including product, place, price, and promotion strategies. It also outlines regulatory and training requirements for maintenance staff and recruitment/selection processes for engineers. The report concludes by addressing challenges in the airline industry, such as recession, skilled labor shortages, and security concerns, proposing solutions like cost reduction and enhanced training. References are provided at the end of the report.

Running head: AEROSPACE MANAGEMENT
Name of the Student:
Name of the University:
Author note:

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ABSTRACT
The current paper is a critical overview of marketing strategy of Stridesjet, the paper
demonstrates SWOT analysis and marketing mix of StridesJet in order to create market position
in airline industry. The airline industry management team aims at achieving its goal within in 12
months and therefore, effective management and marketing strategy is applied. The assignment
highlights the regulatory and training requirements in order to build its own maintenance
capability of StridessJet, the company is also looking for the regulatory and non-regulatory
requirements in order to set up a maintenance capability in Singapore. The paper also depicts the
various problems of airline industry and recommended solutions have been provided.

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Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................5
Marketing Strategy......................................................................................................................5
SWOT Analysis...........................................................................................................................5
The regulatory and training requirements for the maintenance certifying staff..........................9
Recruitment and Selection.........................................................................................................10
Challenges in Airline Industry...................................................................................................11
The Ratio Analysis....................................................................................................................12
Circumstance and Relevant Solution.........................................................................................15
Conclusion.....................................................................................................................................17
Reference.......................................................................................................................................18

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Introduction
The current assignment focuses on providing a market analysis of a low-cost airline
which is based in Singapore. The market analysis strategy is generally used by the marketers in
order to derive the qualitative and quantitative assessment of the market. It enables the market to
take a closer look into the size of the market based on value and its volume. There are various
market analysis strategies which involve the business environment, SWOT, PESTLE and many
more strategies. For the following assignment SWOT analysis is demonstrated in order to
achieve the target of StridesJet, the assignment also focuses on the marketing mix of the two
destinations, Hong Kong and Shenzhen. The business target is to acquire 10% of Singapore low
cost carrier market share of Hong Kong and Shenzhen within 12 months. Effective recruitment
procedure is carried out and proper training assessment is done to retain good engineers. There
are legal implications that are abided on StridesJet in order to maintain the statutory laws. At last
the paper summarizes the problems the airlines faced and recommendation and suggestions are
provided.

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Discussion
StridesJet is a new regional low-cost airline which is based in Singapore which plans to
start its operation from 15 October 2019. The company has competent and efficient management
team; the management tries to adapt new strategies and technological advancement in order to
leverage the company productivity. These factors will lead the company to tackle with its
competitors and gain the trust of the customer; in order to satisfy their needs (Shaw 2016). A
SWOT analysis is demonstrated so as to identify the company strength, weakness, opportunities
and threat and determine the feasibility of achieving their target.
Marketing Strategy
SWOT Analysis
Strength in SWOT Analysis:
The strength is defined as what the company is best at providing which can provide as a
helping hand to get competitive advantage. The following are the strengths of the company:
Strategy: The StridesJet has always focused on planning and implementing the right kind
of strategy in the business. The right kinds of strategies include service quality, cost control and
the operational efficiency. The service quality helps the company to attain customer loyalty and
attain more number of customers of Singapore (Bitzan and Peoples 2016). There are all type of
classes provided, but the business class in a cheap rate is made more appealing as its target
customers are high income status people (Shaw 2016). The luxury suite is designed by the
French Designer Jean Coste, the luxury bed is designed in such a way that the seats can be
converted into bed.

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The spending rule: The Straides aims at following the 4-3-3- spending rule. The airline
focuses on spending around 40% on proving effective training of the employees. The 30% is
spend on the re-engineering and process management of the airline and the other 30% is on the
NPD, new product development process. This is how effective cost management is attained by
the budget distribution.
Effective Frequent Flier Program: The target market or target customers are the
customers who generally travel in business class and economic class. The management team of
Strides has always focused on maintaining customer engagement. Therefore, many effective
frequent flier programs are planned.
Weakness in SWOT Analysis:
The weaknesses are the operational areas where the business needs to improve:
Capacity Issues: When it is compared with the other competitors like China Eastern Airlines,
Southern Airlines, Qatar Airways, Emirates Airlines and Etihad Airways, the StridesJet faces the
issue with low capacity and there are demand fluctuations.
Poor margins: Since, the airline is focusing on the business class most people prefer expensive
airlines for travelling, as it is of low cost the management is trying to improve their margin.
Perception of low-cost airlines: The StridesJet Airlines is a low-cost airline and hence, it is
perceived by the most of the customers that it would provide a low-cost service to the customers
and people might not get attracted towards StridesJet. Therefore, it is the StridesJet who need to
serve quality service to the customers’ even if the low-cost offering in order to attract the
potential customers.

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Opportunities of the SWOT Analysis
The opportunities are referred to those avenues present in the market, which can assess the
business in order to capitalize its return and increase revenue:
Preference for comfortable air travel: According to a study the frequency of air travelling has
increased and many people are travelling across the country with an affordable price. There the
scope of low-cost airline is more in the recent days.
Threats in the SWOT Analysis:
Threats are those factors which can be cautious or detrimental to the buniess and growth of the
business.
High Completion: Competition is the major factor in Singapore, as Singapore Airlines
holds the major airline fleets consists of wide-body aircraft from five aircraft families: the
Airbus A330, Airbus A350, Airbus A380, Boeing 777 and Boeing 787. The airline also operates
Boeing 747-400 cargo aircraft. The Singapore airline is the main competitor for StridesJet,
though their target market is different.
Initial growth opportunity is less: Since, the business is new in the market, it will take
time to rise and to’ achieve target. The initial approach of the business must be effective in order
to attract the potential customers. The management team is required to pay attention on the
promotional activities so that the people of Singapore will be aware of the new airline and will
seek their service (Bains et al. 2016).
Initial Expenditure of the organization: The initial expenditure is an internal threat
which must be planned properly before starting the business in order to avoid loss.

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The marketing mix for StridesJet would the help the business to analyze and make a strategic
plan to incorporate its functions. The marketing mix is comprised of product, price, people and
promotion. The marketing mix strategy of StridesJet can be explained in the following ways:
Product: The products which will be offered by the company is the highest quality of
service with low-cost; it aims to offer comfortable flights and their related services to their
customers. Some of the classes which will be offered by the Airlines are:
Suites: It is only available only in Airbus A456-900. It consists of different separate
compartments for the customers.
First Class: The first class compartments provide T.V with touch controls for the passengers;
there are wide seats with convertible beds and luxury beds with rich ambience.
Business class- Since, the airline is focusing on the low-cost carrier there are more compartments
in business class then the first class and suites. It is highly comfortable for the business people
they have for using their laptops and power sockets for their electronic gadgets.
Economy class: The economy class has slimmer seats with adjustable headsets with 11 inch
touch screen television. The other facilities like power sockets, USB ports, cup holders
Place: The airline aims at providing service to two destinations, Hong Kong and
Shenzhen. Therefore, the team has already sought and obtained regulatory clearance for these
two destinations.
Price: Since, the airline is focusing on the low-cost the price of the different class is
different. The pricing strategy is penetration pricing.

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Promotion: The promotional activities are the most important approach for the airline in
order to make aware of the service to the customers. The 360 brand include print ads, TVCs,
online ads.
The regulatory and training requirements for the maintenance certifying staff
The regulatory amendments that must be obliged by the airlines are:
1. Section 145.A.30 (B)- The individual or group of people who are nominated responsible
for ensuring that the organization complies with the quality manger shall be able to
demonstrate the following:
Good and relevant knowledge about the aircraft and satisfactory experience or
components maintenance as applicable.
Working knowledge on Part-145
2. Section 145.A.30 (e) - The organization must control and establish the competence of
personnel involved in the maintenance areas.
The necessary expertise which is related to the competence and job function must include
an clear understanding of the human factor applications and human performance issues
which is appropriate to the individuals function in the particular organization.
The training needs include:
The certifying staff the support staff must have proper knowledge and understanding of the
relevant aircrafts and their components which needs to be maintained.
There must be at least 6 months experience on actual aircraft maintenance of the personnel.

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The organization needs to develop a program for continuation training; the training includes
practical hands on training and theoretical training as well.
Recruitment and Selection
Human Resource Management methods to recruit and retain good engineers for the
buildup of its maintenance capability
1. In order to recruit and retain good engineers for maintenance capability the first approach
is creating a job description which includes roles and responsibilities of the engineers.
The airline can outsource from SIA Engineering Company Limited which is a
Singaporean company, which is specialized for aircraft maintenance, overhaul and repair
(MRO) services in the Asia-Pacific (Belobaba et al. 2015).
2. After the creating a job description the potential candidate can be outsourced through job
portals and are called for interviews and various tests (Goetz and Sutton 2017). The test
includes psychometric test, written test with aptitude and reasoning tests, technical test
and at last with last round HR interviews.
3. After the selection, of the potential candidate there is induction process where the job
roles and responsibilities are explained and to understand the views of those candidates.
4. In order to retain good engineers, the salary and compensation structure is made attractive
and other benefits with safety measures are also measured.

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Challenges in Airline Industry
The problems that the airline may face and the recommended solution are:
It is evident that the airline industry has been seen into recession, there are number of negative
factors that affect the airline industry. This factor has resulted into poor performance and low
profits as well.
The one factor which is into concern is in global economic slowdown observed not only into
other commercial industries but also effect the airline industry. The sudden slowdown in the
global economy has resulted sudden slowdown in travel industry.
The second factor is the limited supply of skilled labor; this is due to the liberal responsibility in
staff training the human resources are less focused on the proper training of the staff.
The terrorist attacks have built fear in the passengers to travel in plane, the travellers have lost
confidence in in the airline industry, and they have fear of becoming the target of terrorist and for
low security.
The possible solutions for these challenges are:
In order to tackle these challenges, the first thing the company must focus on is dealing
with its losses and making the best use of its resources, and reducing their cost as much as
possible The training procedure must be enhanced ad effective training programs must be carried
out for the plots and staff. To tackle with the terrorist fear the company needs to build trust for
the airline in the minds of the passengers, by proper security.

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The Ratio Analysis
The Financial Statements of a company provide relevant information about a company
financial position which is currently being faced by the company. The profitability leverage and
Liquidity ratio of the Hong Kong Aircraft Engineering Limited.
Profitability Ratio
Return on Assets
Figure 1: Return on Assets
Source: By the author
Return on Assets of a company is the expected return a company is able to generate with its
investment in the assets of the company. The HAECO has a very poor ROA in 2016 at about
3.4624% which increased significantly to 7.68987% in 2017. This indicates a better management
of assets of the company by the management with an increase in the return on assets.
Return on Equity