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Transcript of Singapore Airlines
ALl Nippon Airways
Good Political Ties
Bilateral air agreements of an "Open Skies"
Wide network via code-sharing with Star Alliance
Selling tickets on one another's flights
Comprises of 6 factors:
Shift towards budget airlines
Number of budget airlines increase
Decrease in number of SIA travellers
Other types of competition such as bullet trains, coach, private car rental
Oil Price Hike
Affected financial status
Forced to mark up price of flight tickets
Demand vs Supply
Demand: 2.412 million bpd
Supply: 2.491 million bpd
Invest in long-haul products
Strong financial status; ability to buy new aircrafts
Design aircrafts with hi-tech features
Excess Employee Capacity
Intense Emergence of Low-cost Competitors
To analyse the macroeconomic environment
1. Increase profit margin by 25% within 2 years.
2. Maximize aircraft usage and reduce operational cost.
3. Acquire new strategic partnerships and strengthen existing ones within 5 years.
4. Enhance customer loyalty program.
1. Maintain strong brand image of iconic 'Singapore Girl'.
2. Maintain top service and customer satisfactiion against competitors.
3. Ensuring sustainable growth in airline industry.
4. Achieve top ranking and sustain achievements against competitors.
Laws & Regulations
Compliance to rules, laws and regulations
Confusions & threats concerning compliance
Singapore Tax Law offers low corporate tax rate at 1%
Reduction in carbon footprints
Increase in global warming & noise pollution
Corporate Social Responsibility
Triple bottom-line of sustainability
Using technological advancements to:
- Reduce carbon footprints
- Reduce carbon neutrality
- Carbon offsets
Adopted EMD technology
A must have
price wars to kill off competitors
Accurately and timely executed strategies
Able to achieve company's short term objectives by 2019 and long term objectives throughout the years in the industry
Porter's Five Forces
Budget & Implementation
Short Term Objectives
Long Term Objectives
1. firm infrastructure
2. human resource management
Employees are well-trained and provide excellent services to customers