Analysis Of Tiger Air Within The Industry: SWOT Analysis And Competitor Evaluation

Introduction to Tiger air

Discuss about the Opportunity Analysis Of Tiger Air.

Tiger air is a Singapore based firm, which offers several travelling alternatives at very affordable price to people. The firm claims full satisfaction of buyers as they feel themselves excellent within the industry. The firm initiated its operations in 2004. The firm offers flights to some 37 destinations. This study aims to analyze the situation for the firm within the industry ("TIGERAIR.COM.AU", 2018). The research undertakes initiatives to know the firm’s weaknesses, strengths, threats existing and also opportunities available. It will even evaluate the competitors for the firm and their actions, which the firm needs to look unto in order to attain better market share and become a market leader.

1. Political: As per several studies undertaken and the data collected the actual political ecology of Singapore is very stable, which ultimately ensures growth and development of any industry within the nation. There exist extraordinary political stability and no government disturbance can be seen. Here the airlines fix prices as per their production and marketing costs. Thus, politically Tigerair has a very good advantage in this nation.
2. Social: Singapore being able to carry a very sound as well as intellectually literate and mature crowd with more than 92 % rate of literacy provides a good base for airline firms to work in. This refers to fact that the nation carries very knowledgeable public. But, this fact has both advantages as well as disadvantages for an airline industry. Positive factor is that people are very well aware and can easily compare firms with one other and if they see Tigerair providing an excellent service within lesser cost they would definitely opt for the service. Nonetheless it must be noted that people will also always have look out for another option supplying better service or products in the industry.
3. Economic: Since past several years’ economy of this nation “Singapore” has been seen in a very good position. A decent as well as healthy economy truly permits its players in the market to play with the prices. If rate of inflation in any nation is constant, then firms are able to maintain very cost effective prices. Nevertheless in situations of economic crises such effectiveness of cost might also harm the firms and it then becomes hard to survive for longer time. Tigerair is again lucky to be a part of nation with economic stability.
4. Legal: Effectiveness of cost of any firm results in lesser wages for its staffs. This is because lower cost prices of goods means good manufacturing cost for the specific goods or service is significantly lower. The firm Tigerair apparently faces a risk or challenge in this area, good wages and salary is actually a very good display for staff retention. Thus, Tigerair requires concentrating on this part.
5. Environment: As per data and collected information from several sources provided by the firm it actually appears that Tigerair is undertaking satisfactory steps to manage and properly control its carbon print on earth and thereby works in an environment friendly way. Nevertheless there forever exist a space for growth and improvement.
6. Technological: Scholastics study says that constant growth and improvement is supreme for survival of any firm. Whether firm is presently doing well or not, it is of major importance that they search for better venues as well as services to maintain retention of customers. Technologically Tigerair still needs to enhance them and upgrade to a good extent (Dominici, 2009).

Company, Consumer And Competitor Analysis-

1. Supplier’s bargaining power- airline industry seems to be very concentrated by its suppliers. This makes it hard for the rivals to workout leverage on their suppliers and then attains lesser costs or even works one supplier in contradiction of another. The danger of forward integration in this industry is very low. Power of suppliers additionally reduces the capability of rivals to attain higher profits.
2. Customers bargaining power- Buyer’s bargaining power are the 2^nd most important fact to be realized. If a vital buyer power exists, in form of lesser prices they can accumulate all through the industry returns. Also switching cost is recognized by several factors like the power of buyers, accurate volume of purchase, standardization of the good, elasticity of demand, band’s identity, and also the quality of service provided. When customers choose any specific airline they are accessible to several alternatives. Currently, information of pricing is easily accessible and simpler to equate because of extensive use of Internet. However, Tigerair can try to drop or even increase its prices to uphold competition with some other service provides in the industry (Gordon, 2012).
3. Threat of New Entrants - If any new competitor arrives within industry as well as even if some reduce the industry returns with an aim to pass along the value to purchasers by commencing inferior prices to upsurge competition cost and like to attempt for a new possibility in the business it is called danger of a novel Entrants. Economies of scale, Capital needs, value of a brand and also switching costs are some vital elements through which a firm can recognize the amount of threat from a newfangled entry. It actually is very easy to have access to capital within airline sector. Several banks that obligate airlines make even credit extensions, and in return they attain additional facilities as well as substitute chances within the debt plus equity sector for levitation of funds or capital.
   As it's comparatively easy for all the airlines that are weaker to attain the credit, this sector has actually now become saturated. Within this industry it seems to be very important to carry a good and everlasting brand identity. In airline sector a type of hub scheme heightens the barriers towards entry (Woodall, 2007).
4. Threat from Substitute goods- Accessibility to substitutes seems to be a major element that impacts the level of competition in airline sector. Most thought-provoking thing being the fact that in this industry price of substitute and also the propensity of purchaser towards the substitute affects the level of competition. Some of major alternatives available for airlines can be trains and automobiles. Cheaper solutions of transportation like local cabs, car services, buses affect the sale of airlines. Travelers moving to some neighboring nations of Singapore such as Malaysia might even opt for coach as the way of transportation. Nevertheless, one could effortlessly save money as well as time if he/she travels through airline. Within airline sector money, comfort, personal choice and time are some major factors to attain the intensity of threat from substitute goods.
5. Competitive rivalry in the industry- It is considered as the last element within any sector. Cost of competition within this sector is so elevated or can say that purchasers here like to receive additional benefits that too in lesser prices. Because of which entire competitive sector forcefully earns lower returns. Significant elements such as growth of the industry, identity of the brand, fixed costs, obstacles to exit etc. frequently impacts the level of competitive rivalry. Like several other industries it has been seen that airline sector is additionally competitive. Growth and development within this sector is average, and currently players in this area are actually struggling to attain each other’s share. Obstacles towards exit in this industry are very extensive (LaPlaca, 2007).

a) Strengths- The firm Tigerair actually holds a very dominant post within the regional airline sector because of its lesser-cost services. This makes targeting lower earning segment easier for them thereby building a huge consumer base. The firm carries a vast network within entire Asia. Thus, rate of growth for the firm seems to be extremely high.

b) Threat- As per few studies when any big firm expands at very exponential rate, it results in bad hit by economical crises. Thus Tigerair could be in a susceptible situation if any kind of financial crises occurs in future. Aslo presently the firm carries a very cost effective benefit but in future if another rival arrives with similar or lesser-cost scheme providing similar quality and quantity it could posture a stiff struggle for the firm airline (Wilson, 1984).

c) Opportunities- currently the firm is offering several flights for almost 12 destinations within Asia, moreover Asia comprises of some 48 states. Thus if Tigerair thinks and attempts to expand its functions it would be attain better profits and market share. This can come as a very vast opportunity for the firm as being an Aisan resident; they understand and know this sector as well as its functional quandaries.

d) Weaknesses- Few reviews say that interior part and area of Tigerair’s flights are not at all comfortable. Also some claim that the firm allows limited baggage volume, which makes difficult for travellers to travel. The firm has been seen with very lethargic processing time for attainment of tickets and also not offering any additional food or drinks (Sandhusen, 2000).

Conclusion

As per the analysis as well as plan for marketing communication, it is evidently noticeable that success of the firm Tigerair could actually build a novel hype within the airline sector in Singapore. Furthermore, well-organized marketing plans and strategies as well as good performance within operational actions could be main root of the firm’s accomplishment. The firm itself is very successful plus they have already attained respectable brand recognition throughout the globe within past times. Strategies as well as tactics proposed for the firm in this study could help them in improving their scheme and structure as well as could ensure a better gain for the firm

References

Dominici, G. (2009). From Marketing Mix to e-Marketing Mix: a literature overview and classification. International Journal Of Business And Management, 4(9). doi: 10.5539/ijbm.v4n9p17

Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), 122-126. doi: 10.1016/j.ausmj.2011.10.005

LaPlaca, P. (2007). Industrial Marketing Management. Industrial Marketing Management, 36(7), 843. doi: 10.1016/j.indmarman.2007.06.002

Sandhusen, R. (2000). Marketing. Hauppauge, N.Y.: Barron's.

TIGERAIR.COM.AU. (2018). Retrieved from https://tigerair.com.au

Wilson, T. (1984). Industrial marketing management—Cases and readings. Industrial Marketing Management, 13(4), 269-270. doi: 10.1016/0019-8501(84)90022-1

Woodall, T. (2007). New marketing, improved marketing, apocryphal marketing. European Journal Of Marketing, 41(11/12), 1284-1296. doi: 10.1108/03090560710821170