Singapore Airline’s Response To The Economic Crisis †Free Samples

Question: Discuss about the Singapore Airlines Response To The Economic Crisis. Answer: Introduction Singapore Airline got recognition as being one of the worlds premiere airlines. It has been voted as the best Airline in the world and in the year 1995, Singapore Airlines was regarded as the most admired firm by the magazine of Asian Business. However, the Economic Crisis of Asia affected most of the Airlines in Asia (singaporeair.com, 2017) Singapore International Airlines was also affected by this crisis. However, the airlines, decided to take up acted as a response to this crisis. The airlines adopted strategic management forces in order to comply with the economic crisis when the airlines decided to launch its biggest product. This lead the airlines to a biggest dilemma about that its competitors are facing harsh crisis. Against this background, it is important to note about the mission and vision of the company along with its core competencies. The way the Air Asia has responded to the crisis as well comes under the strength, weakness opportunities and threats of the company. B y taking into account these perspectives, it is important rather to determine the policies of the organization and how it has tackled the problem of the Asian crisis when the other Asia Airlines suffered tremendous loss (singaporeair.com, 2017). Vision of the Singapore International Airlines Singapore Airlines has a responsibility not only to be an excellent Singapore Airlines has a responsibility not only to be an excellent company, but also to be an excellent citizen of the world by enhancing the lives of the people we touch. With that aim in mind, we have made many commitments to the arts and education, to our communities, and the health and welfare of our countrys citizens, and those in countries we fly to. With this goal in mind, weve also made a strong commitment to preserving the environment and our world for future generations. Having the aim in mind, the airlines have built commitments to the education and arts, to the communities and welfare and health of the society and the citizens of the countries where the airlines fly. Having these improvements in mind as well as the goals, the airlines of Singapore has also made stronger commitments in order to preserve the environment and the world for the future generations. The organization has also strived for the sa fety goals (singaporeair.com, 2017). The safety vision is easily available to the public so that they can understand about these important safety goals. The vision therefore, of the airlines industry of Singapore is to become the competitive and foremost aviation group. It looks forward to become passenger focused, flight catering in a best way in the competitive field. Mission of the airlines The mission of the airlines are Offer superior service in every area, at competitive price, yielding a surplus to finance expansion and modernization, and provide a satisfactory return to shareholders. All this, while keeping employees satisfied, happy, and motivated.The airlines of Singapore are an international company, which is dedicated to provide transportation services by air having the highest quality and to enhance the returns for the benefits of its employees and shareholders. Its mission is to become the leading aviation group in Asia by rendering reliable and safe passengers the good services (singaporeair.com, 2017). Core competencies of Singapore International Airlines Having stronger capabilities and the core competencies, the airlines is becoming strongly competent. Firstly, the airlines are providing service which is based on the excellence of being cost effective. During the economic crisis, the airlines of Singapore has reduced 2.5% of its cost and increased its service to the other countries (singaporeair.com, 2017; Drucker, 2017). This important core competency is being supported by the excellent management though the means of communication and motivating the employees in order to build the reputation of the Singapore Airlines Industry. Airlines have made itself stronger along with the mission of the industry. The Airlines through providing excellent services have a built a long- term relationships. The beautiful designs of the services, total innovation of the airport, the employees and the staff development are the important resources of the Singapore Airline Industry are slowly building up the core competencies of the airlines industry (D ermol, 2012; Om Yu 2012). Other than the resources, the brand name of the airline industry has made them famous and a core competent due to the availability of its resources. The employees who are considered as the most important resources and the employees who give helpful assistance to the company during the crisis made the airline industry to gain its core competency (Drucker, 2017). Strength of the of SIA Singapore airlines are bearing strength that it is having the second largest strongest fleets of aircraft in the industry of airlines. The airlines are having a strong support from the government of Singapore. The major strong points of the company is the brand image, size and its positioning strategy. The company for the sake of its brand image earned the annual profit of 340 million in the dollars of Singapore. The international airlines of Singapore took risk during the Asian economic crisis which stated, the airlines in a different position was attracting the wealthy Europeans and the Americans who are willing to pay their services and seating at the premium upgrade or else the airlines feared that it would suffer loss. Despite the crisis, the flight was known for its excellent and top services of hospitality. It has provided a satisfactory base to the customer and the desired passengers airline. The strength lies in the fact that, it has pioneered in the conveniences of the customers and it is being the first flight, which has delivered hot meals to the customers (singaporeair.com, 2017). The strength is not measured in the context of capitalization. The brand of Singapore Airlines is described as the most popular brand in the industry of airlines. The company has secured its position as the leading brand of Airline industry through the utilization of the business model as a first mover. For example, it is being the foremost airlines that it offers refreshments in free and again it is being the first airline to give the delivery of the new A380 passengers plan and the airline industry has always made sure that it is one step ahead of the competitors. Weaknesses The weaknesses of the Singapore Airlines are it costs lot of money from its customers traveling from the Singapore Airlines. The new product launch and services would cost more money from its customers as these have been considered as expensive services. The Ticket price from Kolkata to Singapore is 48,780 in Indian currency for each person. It is evident from the comment of the Chia Cheow Ming of Tal Lee Securities in Singapore. He commented that if Singapore Airlines could attract wealthy Europeans and Americans who are willing to pay for the premium services then the company would get chance not to face the loss. After the Asian economic crisis, the turnover ratio has been dropped down in the Singapore Airlines. The company was compelled to give unpaid leave to its cabin crew for managing the economic crisis in a cost-cutting measure. The company though did not say how many employees have accepted the offer of unpaid leave. However, the Airlines have performed well in last few years. The other weakness has been created due to growing competition in the airlines market (Adl, 2013). As the competition is increasing, the market share of the Singapore Airlines is less. The current market share of the Singapore Airlines is 11.07 million dollars. There are other Asian Airlines companies in the Asia-Europe market, like, Thia Airways, Cathay Pacific, Air China, Korean Air, Malaysian Air, Air India and All Nippon Airways. However, the overcapacity in the markets, the SIA had to make some adjustment. The company could bring more new resources as like other companies would be unable to imitate the resources. Opportunities Singapore Airline has huge opportunities to expand its market into Middle East, China and India and it is providing services across the Asian region (Serpen, 2013). By the end of 2014, the SIA had made a joint venture with Tata group that has aimed to build full service airlines. India is the strategic market that the SIA group wanted to enter. However, the A380 is servicing across Paris, Frankfurt and Zurich. Singapore Airlines could have opportunity to create much deeper partnership. This is the area, which could be improved and it was traditionally a weakness. However, under Mr. Goh, the CEO of the Singapore Airlines, new partnership was being made apart from enlarging various existing partnerships. However, the problem was most of its partnerships were not at all comprehensive. The data has shown that out of 24 partners, only 11 are serving for Singapore Airlines. The other opportunities are that it could create an excellence by building airports, maintaining airports and planes, transporting cargos and operating kitchen. The company could create marketing strategies in these areas to attract more customers. In the growing competitive market, the company needs to provide its customers more opportunities to retain its excellent impression in the market. The company has to provide new services that would impress the domestic and international customers. However, if the company provides new opportunities, the domestic as well as international customers would be attracted towards its services. Threats The threats of the Singapore Airlines are competition and price hike. As there are other airline companies in the airline market beside Singapore Airlines, like, Cathay Pacific, Thai Airline, China Southern Airline, Qantas, the competition rate is much higher in the market particularly for this company. However, the SIAs has continuously introduced new products like A380 and 777-200ER. Although, other airline companies have also developed new products including premium products, that could create a threat for the Singapore Airlines (Laudon Traver, 2013). The growing competition in the market is one of the crucial threats as well as weakness for the company. As the cost of the fuel has been increased, that ticket price has increased in massive way, which could affect the business in negative way. However, the company is helpless in this situation. The company has increase its flight charge in order to gain profit. However, the Singapore Airlines Company could opt for the low cost flights in addition, the company should offer some low cost flight to its customers in order to retain in the competitive market. This offer could minimize the negative effect of the price hike. Appropriateness of SIAs Strategic Response The Singapore Airline has announced to launch its biggest product. This is appropriate decision though the company has faced severe loss (Bisbe Malagueo, 2012). Due to increasing rate of competition in the market, the decision to launch new product is perfect for facing the other competitors and drawing new customers. However, the loss happened due to Economic Crisis in the Asian region and that could be the reason for companys loss. It is expected that the company could overcome the loss after the time of the Asian economic crisis. Analyzing the weaknesses, threats and opportunities it could be said that the new product launch is necessary in the growing competitive market. However, new product launch will eventually help to retain the company in the market. Conclusion It can be concluded by stating that the mission and vision of the Singapore Airlines has been discussed along with its core competencies and it is having a great competitive advantages in the market. The company is one of the largest companies in the market and it shares excellent vision and mission that aims to provide excellent services to all its customers. The strength, weakness, opportunities and threats of the Singapore Airlines has been discussed to determine the appropriateness of the companys strategic response. The way the company has handled the Economic crisis in the Asian region, launching new product in the market would affect in minimal. However, the positive effect of the new product launch would create a long-term policy for the company. By taking into account these perspectives, the assignment has determined the policies of the organization and how it has tackled the problem of the Asian crisis when the other Asia Airlines suffered tremendous loss. References Adl, A., Ashouri, M., Jamalpour, G. and Sandoosi, S.M., (2013). Overview SWOT analysis method and its application in organizations. Singaporean Journal of Business, Economics and Management Studies, 1(12), pp.69-74. Bisbe, J. and Malagueo, R.,( 2012). Using strategic performance measurement systems for strategy formulation: Does it work in dynamic environments?. Management Accounting Research, 23(4), pp.296-311. Coleman, J., (2013). Six components of a great corporate culture.Harvard Business Review,5(6), p.2013. 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