The aim of this report is to analyze the five forces of the Singapore Airline compared to another low cost carrier. The development and innovations in the airline industries is the contributor to the economic development. So, innovation in the Singapore airline industry is becoming the important part to overcome from the economic recession and global terrorism. The objective of this report is to examine the competitive forces affecting the operations of Singapore Airlines. The five forces analysis of Singapore Airlines is given below:
According to the Michael Porter, there are five factors i.e. threats of new entrants, threats of substitute products or services, bargaining power of suppliers, bargaining power of buyer, and the rivalry in the market. The analysis of Singapore Airlines is as follows:
There is deregulation in the airline industry and the result is lower fares, and higher load factors. The flight service of Singapore Airlines has increased. Along with this, there are various new airlines which are improving their services continuously. They are trying hard because the older airlines have left strong impact on the customers with their services.
The major supplier of the airline is Malaysian Airlines which deal with other manufactures of various products such as Airbus, Fokker Boeing and supply the aircrafts and electrical parts to the airline industry. Because of being major suppliers, the supplier companies hold power more than the airlines. Singapore Airlines has two major suppliers of aircrafts i.e. Boeing and Air bus and by which the airline is able to maintain its position. The suppliers companies are supplying the airline products continuously. So, the supplier companies have great supplier power because they are the largest suppliers which are helping to improve the performance of Singapore airlines.
The fuel cost is expected to increase due to increment in the prices of oil to $100 per barrel. The demand of fuel and cost of operation is increasing because the supply of fuel has 15 to 20% in the operation costs. The Tiger Airways flew into different timings in 2004 and because of raising the oil prices; it had created the great competition for the other airlines. The Airways had minimized the supplier power by held off the fuel costs (Ministry of Foreign Affairs Singapore, 2016).
Having diverse plane services, the Singapore Airlines has left the strong impact on the customers. The Airlines has allowed the customers to differentiate the flights in terms of price and quality. The customers compare the airline companies in terms of provided services and the prices and are able to have great experience in the Airline industry. The Singapore Airlines is able to gain competitive advantage by providing great-in-flight services to the customers. There are so many competitors in the airline industry which are budget airlines but they are not able to compete with the ability of Singapore Airlines in terms of gaining competitive advantage (KAUR, 2015).
There is the strong bargaining power of consumers because there are lots of options for them and they can switch easily on the other options. There is low cost switching airline that can be adopted by the customers. Along with this, now customers are more smart and educated. They are aware of all the things such as price and quality in the market. They are price sensitive, and using online booking system rather than going physically for booking the tickets. As per the research, it can be said that more than 50% of the bookings will be made through mobile devices and apps. Through internet, mobiles apps and technology, customers are able to compare the prices of two airlines. Customers have more options in the airline industry. So, the buyer power is increased continuously.
There are many options for the customers in the transport system rather than flights such as bus, trains, cruise and cars etc. due to advancement in the technology, consumers are no longer dependent on one option of transportation. Teleconferencing is the best medium to talk with each other at long distance and it is the best medium to take decision. Along with this, technology has saved the cost and time so, consumers do not need to spend much on the travelling. The information can be communicated among the people through the technology rather than meeting physically. There is email that has also strong impact on the consumers as this the fast and inexpensive method of communication for the business. This method enables the people to talk around the world and prevent delays.
From the above discussion, it has been analyzed that the SINGAPORE AIRLINES has the strong competitive advantage by providing good services. But the airline is affected by the increased oil prices and the demand of the flights is decreasing among the consumers.
KAUR, K., (2015), Airfares set to rise next year despite lower oil prices, Accessed on 21st December 2016 from https://www.straitstimes.com/singapore/airfares-set-to-rise-next-yeardespite-lower-oil-prices
Ministry of Foreign Affairs Singapore, (2016), airline industry innovation report, Accessed on 21st December 2016 from https://www.mfa.gov.sg/content/mfa/index.html
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Five Forces Analysis Of Singapore Airlines. Retrieved from https://myassignmenthelp.com/free-samples/five-forces-analysis-of-singapore-airlines.
"Five Forces Analysis Of Singapore Airlines." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/five-forces-analysis-of-singapore-airlines.
My Assignment Help (2018) Five Forces Analysis Of Singapore Airlines [Online]. Available from: https://myassignmenthelp.com/free-samples/five-forces-analysis-of-singapore-airlines
[Accessed 02 March 2021].
My Assignment Help. 'Five Forces Analysis Of Singapore Airlines' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/five-forces-analysis-of-singapore-airlines> accessed 02 March 2021.
My Assignment Help. Five Forces Analysis Of Singapore Airlines [Internet]. My Assignment Help. 2018 [cited 02 March 2021]. Available from: https://myassignmenthelp.com/free-samples/five-forces-analysis-of-singapore-airlines.
'do my coursework cheap' or 'write my coursework cheap' are the most searched term among the Singaporean students to get quality assistance at reasonable rates. Students need coursework help to develop a strong and informative paper. However, at MyAssignmenthelp.com, we always work hard and make sure that you pay for the best coursework assistance in Singapore. Our team of in-house coursework writers possesses exceptional writing skill. They hail from Singapore and are well-acquainted with the university guidelines. To enjoy complete assistance from us, we welcome you to visit our website and place an order.
Answer: Introduction The Capital asset pricing model (CAPM) is a beneficial model, and it is used widely in the industry even though it is based on extreme assumptions. In line with this statement, this paper seeks to investigate on the issues surrounding CAPM as a financial/ investment concept heavily relied upon by the investors in the economic and investment markets. Specifically, the study seeks to address the specific issues surrounding CA...
Read MoreAnswer: Part A 1. The eleven components of valid routine subcutaneous insulin order for medication need to be determined and evaluated. Patient identification – It is done to by the set standards to identify the type of problem caused to the patient, it is the initial stage most important step to initiate the treatment. Cross-referencing of medication with the national standards is to be done. Hospital details should be notified du...
Read MoreAnswer: There are two methods of recording the transaction namely the cash method and the accrual method of accounting. The main difference between the two methods of accounting is time when the transactions are recorded. Nevertheless, upon aggregating the transaction over the time the result that is yielded approximately the identical time (Ball et al., 2016). The cash method of accounting records the revenue when it is received from the cus...
Read MoreAnswers: 1.Bench Marking To assess the financial strength of the different entities and industries norms benchmarks are used. There are different of ways of assessing the positions of company performances. ( Orlova and Afonin, 2015). Difference between types of benchmarks: In house benchmarkingis an assessment of a business course to a similar course inside the group. Competitive benchmarkingis a direct participant-to-participant comp...
Read MoreAnswer: Introduction In the recent times, the concern for the employability is seen to be growing day by day which is evident with the advancement in the educational sector along with introduction of the new reforms (Harvey et al., 2017). Some off the main concerning questions needs to eb followed with the various nature of the research which are seen to be based on the various types of the skills such as employment associated with the qualif...
Read MoreJust share requirement and get customized Solution.
Orders
Overall Rating
Experts
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
okay. i passed the assignment according to the rubric but the work is poorly and carelesslyI done
Australia
I got my assignment with all requirements what I want. I\'ll suggest to everyone that anyone can order and trust on their work. I\'ll highly recommended to everyone. Thank you
Australia
my strict professor really liked it and he was really satisfied. also it was rellay on time and it was really arranged and regulated.
Australia
This assignment was given at the last minute and my assignment help really did help!
Australia