Discuss about the Strategic Management for Singapore International Airlines.
In this paper, the ultimate aim is to key out the way SIA respond to the economic crisis was appropriate or not. Singapore International Airlines holds great name and fame in the Aviation Industry. It started its journey as a wholly owned subsidiary. The Airlines make use of the effective and promising strategies to gain a favorable response from their clientele. This particular airline puts in best efforts to satisfy and please the audiences by means of top-notch level of services. After going through the performance records of the Airlines, it can be understood that it has contributed well enough to make the customers accessible with the superior level of services and comfort (Sadler, 2003).
Owing to this fact only, the SIA is the world’s best airlines and an icon of the Singapore nation. All these altogether adds on great growth and progress to the company and make it feel pride as well. After going through the way SIA respond to the economic crisis, the company’s part seem to be very much hopeful and expectant. It supports the airlines to maintain its presence even at harsh conditions. The Executive Board and the Management of Singapore International Airlines take up a wise and active step to get over with the economic crisis time. Moreover, the organization has a wide-ranging approach towards the betterment of the community, customers, and preserving the ecological balance. SIA also acts as a responsible citizen that plays its part well and make the country grow and progress with its unending efforts (Jeffs, 2008).
SIA’s vision is to mark a robust position and realize incessant growth in a globalized arena. At the same time, the airlines wish to maintain the productive and profitable levels. With this vision in mind, the company fly high and reach to its destined goal. It comes out to be the only way that allows an organization stand still even at such critical points. The way to deal with the unfavorable situation is highly admirable.
Mission statement state that it is committed to rendering air transportation services that too of supreme quality. Along with this, maximizing returns for the sake of benefitting its shareholders as well as employees.
The company marked grip on the aviation industry and knows well to meet expectations of its audiences. This takes place by an effective use of the strategies and that leads to maintaining a competitive edge. For this, it unveiled such strategies that make it a pioneer in the industry. The perfect blend of digital and advertising platform for promotional campaigns leads to success. Along with this, it is well-versed in capturing attention from the part of the audiences by means of offering the unique combination of services that comprises of the entertainment packages together with the food and alcohol (Hitt, Ireland & Koskisson, 2009).
It receives support from the part of the government as the airlines are really well in its area. Subsidies back up the firm to raise the augmentation levels. Employee’s wide level support turn up as the biggest advantage for their company. After facing such an economic crisis, the company’s members do not take a step back and even participate in the battle against it. It serves to be the biggest support and allow the company sustain its presence for a long-run (Haberberg & Rieple, 2007).
These core competencies are the assets for an organization to discharge its liabilities. SIA’s response is really commendable and cannot be overlooked in any manner. This respective crisis gives the immense level of threat to the airlines operating in the Asian Region. But, then also, the initiatives taken at the part of the Singapore International Airlines is above all expectations. They announced a 2.5% reduction in flights capacity to the Southeast Asian Region. On the other hand, it raises the number of flights to the regions of Europe, US, and Australia.
The promotional step also turns up as a boon for the company to gain trust at the part of the customers. Management and its forego for their increments is the most important area to face the crisis with unity and harmony. It shows their synchronization and the way they stand at such crisis time. With this, it can be understood that the company and its members put in best possible efforts to maintain its growth levels (Cole, 2003).
This clearly communicates the way the organization and its team make perfect use of the strategic moves and flaunt its core competencies. In front of the contenders, the company maintain its positive image and standing and also taken as an inspiring instance for the other companies. The role played by the members of the company is up to the mark and reveal their sincere efforts.
Strengths point out the areas that are powerful at the company’s part. In a case of Singapore International Airlines, the company receives backup from the Government of Singapore. This aids the company to its business activities to meet customer’s needs and expectations. The Customer base is the satisfied one and develops trust and conviction in the company. Actually, from the long list of airlines, the passengers have an inclination towards SIA. It is the positive point for the airlines and that makes them the most preferred airlines company (Hill & Jones, 2012).
The good combination of premium and supreme services make the customer feel respectable for the company. Strong branding and effective ways considered to promoting its services for the valuable clientele. The company is one of the top airline brands as far as market capitalization and passengers carried are concerned. These are the possible strong points that allow an organization to grow and progress in the most successful manner (Saloner, Shepard & Podolny, 2008).
The best part of SIA is its caring employees and management team. These are the supporting pillars and contributed successfully at thins and thicks. Awards and recognition are also received for being an effective host to its customers. All around the globe, SIA has the leading presence and puts in regular attempts to make it ongoing. It becomes important enough to maintain growth and excellence levels to enjoy success and reputation in the respective industry.
The weaknesses of SIA are a low scale of operations, an increase in a level of competition, and strong reliance on the international traffic. These serve to be the weak points and can cause trouble to the incessant level of performance of the airline’s company. Low scale of operations state as to how the company is not able to maintain its operations to the higher level. This cause significant impact to its working and functioning. It becomes very much requisite to maintain the level of operations at such a scale that are highly competent and effective enough (Combe, 2006).
An increase in a level of competition creates trouble in front of the company leading to financial issues. Market share growth is low and that indicate competition is high enough at the industry level. The Aviation Industry is vast enough and comprises of a good number of Airlines company. At this juncture, it is important enough to take in the most vital step to face the opposition and to make a move ahead.
High level of dependency on the international traffic also poses threat in front of the company. It calls for an effective action to maintain the growth and productivity levels. There rests great necessity to make sure that the company has to think different in order to lower down its dependency on the international traffic (Ahlstrom & Bruton, 2009).
The hand full of opportunities could allow the company to perk up its performance levels. At the same time, it would be able to take an advantage of the unfavorable aspects. SIA can control the first-rate Hub which it has produced in Singapore. This can turn out to be the biggest opportunity for the company to make other realize its strong presence. Moreover, it concentrates more on to grab highest possible attention from the part of the key audiences.
Another important aspect would be to brand a fresh Fleet so as to improve customer confidence. For doing the same, it would consider such a team that is well-versed to communicate well with the customers. There rests great necessity to make sure that the customer’s expectations are met with utmost effectiveness (Hitt, Ireland & Koskisson, 2006).
By adding international destinations, it would be able to pull on its brand image. This would be a valuable step to mark presence at the industry level. Relationships with the suppliers should also be positive enough to extend and progress. The global level of tourism can also support the company to raise its number of flights and to lift up the revenues level. All these are the best possible ways to better up the working area and to gain highest possible returns at the part of the company (Grundy & Brown, 2002).
The threats are intense competition, foreign currency fluctuation, and rising fuel costs. In Aviation Industry, the threat of heavy competition is very much experienced. This is the reason that the company has to be very much careful and conscious about the moves considered by it. Foreign currency fluctuations and the rising fuel costs are equally daunting at the part of the company (Thompson & Martin, 2005).
This mainly looks forward to understanding the way an organization can put off these threats to enjoy an incessant level of performance. It becomes equally important to have all the necessary preparations to downsize the level of threats. Moreover, the way organization responds to the economic crisis show the way it handles the dilemma with all hope and optimism. SIA has to consider all these threats and to plan out better ways to get over these level of threats (Heracleous, 2003).
Appropriateness of SIA’s Strategic Response
After listing out the strengths, weaknesses, opportunities, and threats of the company, it can be very clear about potential carried by it. SIA’s strategic response is the most admirable one to show the way balancing of the situation takes place effectively. The Economic crisis was really a pathetic situation and to gain control over is highly obligatory. It becomes equally important to make sure that the results drawn are hopeful for the company’s future (Gottschalk, 2005).
The reduction in the number of flights to the Southeast Asian region is really a hard step to follow. This is because the company incepted from the same region. The step put forward is the wisest one and shows the potential and caliber of its management team. All their assessments and calculations turn up right enough to deal with such a panic issue. The ultimate aim to stand still at this tough time and to maintain the presence in the industry is the crucial step (Drejer, 2002).
SIA’s strategic response is the best one to come out of this vicious circle. There is no doubt that it carries high risk and can cause damage to its profit levels. Then also, the Management and its team dare to go with this step and it come up as a huge success. Other than this, the company can also go with environmental scanning to figure out the competitor’s moves. It is the most requisite step just to deal with such inauspicious areas that could create a problem at the smooth functioning levels. SIA’s response said to be the most effective one and make it possess noticeable presence amongst its stakeholders (Kenny, 2012).
Singapore International Airlines do not compromise with the situation rather faced it with courage and audacity. Behind this, the team of the company and the Executive Board are held liable. Their strategic moves allow the company to face such an economic crisis and to maintain the name and fame. From this, one can very well perceive that the management and strategy are perfectly aligned to realize such hopeful outcomes. In addition to this, the company is also able to share its presence in the industry and make customers feel happy and pleased enough. The strategic response seems to the vital one for SIA and allows it to gain back its revenues.
Ahlstrom, D. & Bruton, G.D. (2009). International Management: Strategy and Culture in the Emerging World. Cengage Learning.
Cole, A.G. (2003). Strategic Management. (2nd ed.). Cengage Learning EMEA.
Combe, C. (2006). Introduction to E-business: Management and Strategy. Routledge.
Drejer, A. (2002). Strategic Management and Core Competencies: Theory and Application. Greenwood Publishing Group.
Gottschalk, P. (2005). Strategic Knowledge Management Technology. Idea Group Inc (IGI).
Grundy, T. & Brown, L. (2002). Strategic Project Management: Creating Organizational Breakthroughs. Cengage Learning EMEA.
Haberberg, A. & Rieple, A. (2007). Strategic Management: Theory and Application. Oxford University Press.
Heracleous, L. (2003). Strategy and Organization: Realizing Strategic Management. Cambridge University Press.
Hill, L.W.C. & Jones, R.G. (2012). Strategic Management: An Integrated Approach. (10th ed.). Cengage Learning.
Hitt, A.M., Ireland, D.R. & Koskisson, E.R. (2009). Strategic Management: Competitiveness and Globalization: Cases. (8th ed.). Cengage Learning.
Hitt, A.M., Ireland, D.R. & Koskisson, E.R. (2006). Strategic Management: Concepts and Cases. (7th ed.). Cengage Learning.
Jeffs, C. (2008). Strategic Management. SAGE.
Kenny, G. (2012). Strategic Planning and Performance Management. Routledge.
Sadler, P. (2003). Strategic Management. (2nd ed.). Kogan Page Publishers.
Saloner, G., Shepard, A. & Podolny, J. (2008). Strategic Management. John Wiley & Sons.
Thompson, J.L. & Martin, F. (2005). Strategic Management: Awareness and Change. Cengage Learning EMEA.