Remain Competitive In The Airline Industry Marketing Essay

Published Date: 23 Mar 2015

This research has chosen the topic of how Singapore International Airlines (SIA) cans Remain Competitive in the Airline Industry. SIA is a World-known successful airline company in the industry. SIA has developed as one of the world's leading Airline in the last twenty years. SIA is more competitive because of its Strategic Management, each and every department of the SIA are specifically scheming to maintenance SIA's complete strategic plan which is "Compete on service". This research report describes the how Marketing Strategy and aim and objective of SIA help to uphold its long-range plan as well as successfully compete in the airline industry. The research mythology and survey will come from respondent on Singapore who had taken SIA and other major competitive airlines. This research report helps readers to understand how SIA successfully remain competitive in the Airline Industry and the researcher's finding and recommendation to the Singapore International Airlines.

Chapter 1: Introduction

Aim and Objective

The main purpose of the research presented in this assignment is to research on how Singapore International Airlines can Remain Competitive in the Airline Industry.

To analyse the Importance and Impacts of strategic management on SIA success

"The on-going process of formulating, implementing and controlling broad plans guide the organizational in achieving the strategic goods given its internal and external environment".

The importance and impact of strategic marketing of the SIA is to focus on passenger's needs and providing an excellent inflight service. To provide excellence service, SIA ensure flight attendants on board to be of excellent quality and it was continuously focuses on training and customer service of its employees. SIA target market is primarily in Australia, New Zealand, Indonesia, the Philippines and Singapore and SIA brand is very strong since the beginning of aviation. The impeccable service of SIA has become part of the corporate culture and image, by these elements, SIA turns into a powerful market-strategy and strategic valuable airline in the airlines industry.

To identify the Main business objectives of SIA in airline industry

The primary objective of SIA is to create a world-class airline and is able to compete with the best airline in the world without government support or interference. To create a positive extensive coverage SIA continues to encourage high passenger bookings after launch and deliver above and beyond customer expectations to ensure it expanding the internal marketing team. This international focus led to the creation of a company-wide commitment to the company's success. The biggest challenge for SIA is to maintain its position as the best airline in the world and the most profitable. And I this case most SIA objectives are reach its aim and customer expectations are exceeded significantly.

To Analyse the competitive position of SIA in airline industry

Competition: "The degree to which a nation can, under free and fair market conditions, produce good and services that will meet the test of international markets while simultaneously maintaining or expanding the real income of its citizens."

SIA has established an excellent reputation as a tough competition to commercial aviation businesses providing customers with high quality service and the dominant business travel segments. SIA's Strategy and Competitiveness are on top in present, especially in the area of service excellence, efficiency and innovation. As SIA no other airline has managed to "brand" and promote the cabin crew successfully, which is the key competitive advantage of SIA. It is a service company; its front-line staff is representing the company and the service from the client side of the business and front-line staff has the power to make the decisions for is there any necessary; they can modify the services and take immediate corrective action in relation to the recovery services. SIA a reputation for reliable service has proven to develop a positive image to customers, which can lead to more jobs. The airlines are able to control these elements is said to offer better customer service, and thus provide a more reliable service, by this SIA is remain competitive in the airline industry.

To identify the Major challenges in the market environment of airline industry

Airline industry is facing one of the greatest challenges from the global recession, global warming and the growing scarcity of raw materials. These factors and other challenges involved in analysing the marketing environment. The main trends in the aviation industry took place in the past, have continued growth, deregulation and liberalization of the sky. Ailine industys increased use of air travel from the tourists, passengers are go for low-cost airlines, and they demands for change and the need for efficiency due to the economic conditions in the ailine industry, and each of these trends have an impact on the environmental performance of the industry. Following categarised the main cahllanges in the market environment in the airline industry:

Competition

International Economy

Changing modern culture

Consumer protection and rights of passengers

Relations with staff and new employees

Navy Exchange and the price of new aircraft

Impact of technology on the release process

Higher costs of fuel, labour, maintenance and security.

To analyse the branding strategy used by SIA

SIA is one of the leading brands of world and it is a unique brand. SIA has consistently been one of the most profitable airlines in the world, and it has always had a reputation as an innovative competitor among the airline industry. There are many reasons for this, as it is directly related to the strong brand management is primarily driven by the boardroom of SIA and senior management, and a healthy brand equity as a result of private, professional brand across diverse, global brand organisation. Singapore Airlines brand is unique in the sense that the conference takes dedicated leadership, brand strategy, unlike many other Asian companies.

Contents of This Report

This research report consists of seven Chapters. In the following chapters, contents of the research report will be discussed as follows:

Chapter 1

Introduction describe the main purpose of the research, Aims and obejective of the research topic, to support this, repoet provide detais to analse the importance and impact of the strategic management on SIA. Also to identify the majet challenges od the market environment and competitive potions of SIA in airline industry.

Chapter 2

Backgrounds information's give details description of History of Ailine industry and the second part analyses the SIA whole, reviewing its historical development and services provide to the consumers. As the most successful aininr in the industy, SIA has the valuable milestones, here will provide the SIA competitors details and its market potiosn detals.

Chapter 3

Litreture review is to describe the definiation and importance os Applying Marketing Strategy on SIA. And second part is to describe the Marketing strategy of the SIA and furthermore third part describes the external and internal Analyse of the SIA with support of PEST and SWOT analysis tools, final part describe the industrial analysis of SIA with support of Porter's Five Forces tools.

Chapter 4

A methodology is the chapter that the researcher adopted the overall research. This is describe, how to choose the proper methods to survey used to conduct this research and it will clearly explain how the researcher collect all data and information related to the reach topic, with use of following tools; Primary Research and Secondary Research.

Chapter 5

this result chapter will discuss about the survey results and provide the findings which the researcher collect from the survey details.

Chapter 6

Recommendation chapter will be provide by the researcher the SIA to improve and stay successful competitive ailine in the industry, by using the collected data from the survery and their marketing strategy.

Chapter 7

Conclusion of the report reminds the reader of the main aim and obejectives of this research report.

Chapter 2: Backgrounds

History of Airline Industry

The airline industry has always remained divided, mainly to reduce the impact on the national and international regulations. In the form of forced termination and related restrictions on competition, even though the major airlines had only been able to develop their own self-determination of regional markets, at best. However, the competitive dynamics in the sector had begun to change dramatically over the last year. Liberalization, privatization, and new technologies have begun to modify the industry worldwide. Airline industry has been affected by various factors, such as excess capacity, product sales promotions, cut-throat competition exacerbated by the entry of low cost airlines and periodically catastrophically low. Aviation came of age during the 1960s, mainly to the introduction of jet-liner, and the gradual removal and replacement of propeller aircraft. (Anon., 2009) Airline stocks grown from 1960 through 1967, when the great bull market ended, and a replacement of propeller aircraft with jets, reduce unit costs and increased productivity, air transport became affordable to the masses and found the airlines compete on price. This growth in passenger traffic generated significant growth in the development of industry, which, unfortunately, the extrapolation of the time, which turned out to be an incredibly optimistic. Recession of the 1970s, high oil prices, contraction in demand was hit just as the airlines brought a huge amount of new capacity, which is based on rosy forecasts a compound growth planned. The stock market has found that the air was a growing industry, but it was a very cyclical industry. 1978 the de-regulation took place. First, the airlines were given free entry and exit for all domestic flights. Second, the airlines were able to create their own pricing. This was great airline managers who were generally inept at competitive prices: prior to the regulated prices can raise prices by raising the cost of all the regions, and the entry into your market was highly regulated, increasing the price will not cost you market share. In the last century, air traffic has grown an experimental means of transport for a large part of the transport system in the world, carrying some 1.5 billion passengers a year. With the rapid growth years of the Second World War, the U.S. airline has changed dramatically with the publication in 1978. During the next 30 years, the major airlines have merged into a failed and went out of business, while smaller airlines become strong competitors on the inner journey. At the same time, many airlines have purchased larger aircraft can accommodate flow of passengers.

History of Singapore Airlines

Singapore airlines were originated from Malayan Airway Limited, where the company began operations in 1947. Due to political reasons, Singapore Airlines is maintained by Temasek Holding, a state-owned investment house. Without domestic routes available after the separation, the airline Singapore has come into effect only rely on the international market, which is subject to intense competition. Created the first hard drive to compete with the spirit and dedication to the brand. Airlines have launched the brand strategy, the inflight service, the company dealing with French haute couture designer Pierre Balmainin in 1972 to design a special edition of the Malay sarong kebaya uniform as hostess and then you have the trademark "Girls Singapore "is an excellent inflight entertainment. This later becomes one of the most famous signatures airlines. (Airbus, 2007)

Marketing Strategy accompanied by background information to talk about lobbying effort by providing access to the airport and the dedication of its workforce, investing in a training facility 20 million. What made since 1973 when the company was ranked third in Far East Asia. Since then, the company has the power to make a cost reduction program to combat the surge in oil prices in 1973 ~ 1977. Surviving this, in 1977, a joint venture with airlines British Airways offers a Concord jet service between Singapore and London, the service was discontinued in 1980. This, however, consider the marketing success of Singapore Airline was to make known all over the world in this achievement. At the same time the new airport changing built, which is a higher level of service offered to the airline of Singapore. This has paid off, and Singapore Airlines was the first priority in the Asia-Pacific region in 1981. (Pan, 2009)

airline continuously monitors the internal growth strategy for 1980, to expand the size of the fleet renewal and the addition of a path. Co privatized in 1985, including the Stock Exchange of Singapore Temasek Holding owns 63% initially and gradually decreased to 54% in 2008. In 1990, the company follows its aggressive growth pattern was in the form of two subsidiaries in 1992, Silk Air to close the gap between the network path and the lower end of the food market, the SIA Engineering is a form to increase productivity and performance of the best business opportunities. The globalization of the 1990s, also calls the airline to expand abroad, invest in another airline will form a new subsidiary in another country is a better support to airlines. The Asian financial crisis in late 1990 to call the airline to check the operating costs, while pruning is not a profitable way. [St James Press, 1999]. Against conventional wisdom, the company has taken advantage of the strong financial resources during the financial crisis, venture capital investment, expenditure of 300million renovating homes in the air. This was useful for the airline during the crisis are low and airlines have greater bargaining power in relation to the supplier. (Calingo., 1997)

To date, Singapore Airlines Group provides passenger and cargo air transport, airport terminal and aerospace technical services, training of pilots, air charters and tour wholesaling and related activities. Since March 2009, the group has 31,834 employees, posted net sales of SGD 15996000000. Airlines operating on the route in 36 countries and 66 destinations and 726 weekly flights. Performance Singapore Airlines in early 2009 and was severely depressed before buying fuel hedging prices high before the economic crisis. Internal factors were the main value of SMP made in the late 90 s, and apart from SIA focused on cost containment. Developed a strong cultural brand through the "image of Singapore Girl", which is associated with a stewardess on the plane. They also increase the frequency of route network with the development and acquisition of new aircraft, and was innovative in relation to new products. External factors that led to the increase of technical and strategic location of Singapore in the middle of Southeast Asia. External competition was one of the factors that brought the new product development Co., to overcome competition from outside the state aid from abroad the matter, which contributes to the increase of SMP. favor of sustainable development, the basic values ​​of CO takes place, which was the foundation of excellent service to the values ​​and guidelines for getting things into consideration. The organizational structure was that each worker knew what the company called its own initiative and creativity of workers. satisfaction of customers and Co. will make every effort to satisfy the customer, what happened to meet specific needs customers. Customer feedback has been very important to improve the company, and the company focused on new trends. addition, the company paid attention to the education of their employees. To maintain key personnel to maintain key personnel, SIA could receive an increase in salary, a higher position on key personnel, as well as participation in new projects and goals. addition, key personnel could receive awards for performance and get some discount flights, or even a discount on hotels, especially in cities. (Warnstam., 2007)

Product and Market

The main product is SIA is travel. Because there is no monopolize domestic routes, SIA was to target the global market and compete with the more experienced players. In 1973, SIA set up a subsidiary company in Singapore Airport Terminal Services Ltd, to provide ground handling services. In 1977, along with British Airways, SIA introduced the supersonic Concorde London-Bahrain-Singapore route. The service was discontinued in 1980. Geographical area of ​​operation includes SIA East Asia, Europe and the Western Pacific region.

Chapter 3: Literature Review

Definition and Importance of Applying Marketing Strategy

Marketing strategy is a long term approach to optimize the allocation of limited resources used to produce excellent customer service experience of the company and customers to promote the interests of other stakeholders. It is close to strategic planning, creating company strategy. Marketing strategy associated with the corporate mission and values.

Benefits of Marketing Strategy

Best sales

The smart future shape of the company

Improve productivity and profitability

To increase awareness of external threats

Understanding of competitors' strategies

Less resistance to change

All businesses need marketing strategy. Time and money are important factors for the success of the primary air industry. Marketing Strategy helps owners determine the brand, so you do not spend a lot of productivity, time to market your products to offer false humans. The marketing plan a blue print for entrepreneurs to pursue their hopes to bring in more profit than they earn and research shows that organizations use strategic management concepts are more profitable and successful than those who do not. Companies use strategic management concepts show a significant improvement in services, productivity and profitability compared to firms without systematic planning activities. Effective enterprises tend to do systematic planning to prepare for future changes in the external and internal environment and the companies who with a design that resembles the systems of strategic management theory generally excellent long-term economic performance in the airline industry.

Marketing Strategy

Marketing strategies on the fundamental rights of marketing plans designed to meet the market needs and achieve your marketing goals. Plans and objectives are generally tested for specific results. In general, marketing strategies are developed multi-annual plans with the tactical plan in detail the specific actions to be carried out later this year. Horizons of the marketing plan vary by company, industry and the nation. They have designed and partially unplanned. Marketing strategy involves careful scanning of internal and external environments. Internal environmental factors are the marketing mix, as well as performance analysis and strategic controls. External environmental components hold consumer analysis, competitor analysis, target market analysis and evaluation of all parts of the technical, economic, social and political background possible to impact on success. A key part of the marketing strategy is often to be marketed in accordance with the dominant company in the idea. After a critical analyse is complete, a strategic plan can assembled to categorize business alternatives, create high goals, and decide the ideal marketing mix to reach these objectives, the development of a marketing strategy, market selection types, public, market segmentation, planning and co-competitive behaviour and application details. The last stage in increasing a marketing strategy is to build a plan for monitoring progress and various costs if problems arise during the implementation of the program. (Chan, 2000)

SIA used mainly diversification strategy at the Group level, extends its business aviation catering, aircraft maintenance, airport. SIA used two strategies of differentiation and cost leadership, to achieve efficient service excellence in a very business performance. The company had achieved a high corporate profitability through five organizational systems in place. There is a structured design and development services, has a special section in product design and run through a myriad of tests, in order to perfect the quality of the product in the final meeting last customer expectations. Another common innovation uses a special section of consumers' development in the next five years, focusing on a small improvement, but the wide reach, when cost-effective, highly productive innovation. SIA offers its successor weak point of copying other consecutive development, to reduce the risks and costs of re-innovation. Third, cultivate cultural awareness non-profit, educational workers of the importance of profitability and balance trying to satisfy the customer and providing the products have gone through the analysis of the profit before. The company also set up a system to reward employees based on peer pressure, which causes the profitability of waste and encourage the team aims to increase productivity. Also SIA achieved cost synergies by diversifying and infrastructure subsidiary. Vertical integration enables the company to have better quality control, to increase knowledge and reduce costs at the same time. The company also manages the subsidiaries clear expectations and allows the subsidiary subject to market discipline. Finally, the company is developing a comprehensive human resources rigorous interview and training, to promote themselves directly to continuous learning to improve self-esteem. This was responsible for the company's ability to achieve a diversified offer good performance. (Scott, 2008)

A strategic marketing model has 3 main stages, those are following:

 

Analysis

By analysing the organization, customers, competitors and the business environment

Planning

Match the business environment and the mission and values. The focus of phase two phases: the development of products and services for sustainable competitive advantage, and design an attractive brand.

Execution

To better communicate our value proposition, consistent communication of public relations, advertising, sales promotion, direct marketing, guerrilla marketing, e-marketing, and others are used.

Marketing competence

Distribution channel is traveling Co. mainly produces and reservation. Carrier Internet moving towards e-ticketing, and is the first fully interline e-ticketing system allows full ticketless passengers boarding even if the connecting flight for partners scheduled flights (SIA, 2012). It's also a good investment for the search engines when searching for the keywords Airline Singapore and Singapore airline tickets, SIA was visible at the top of the list, but the address field www.sia.com www.sia.com . sg and lacks the SIA has drawbacks, attempt website marketing social network, the company without the presence of a limited presence on Twitter and Facebook. All this shows that the company was not very good at established Internet, even though the company has been promoting their business online. The company is using a smaller amount of marketing effort; Figure 3 shows a downward trend in sales costs. In 2009, the sale price is 5% of total expenses. This is still a high percentage when you compare Qantas rate was 4.4%, while Cathay Pacific had little marketing costs. SIA characters was 19% less than the previous year, but still have the top brand in Singapore. Standing around SGD 4billion, this value indicates that the company is still well recognized around the world. (Hamel, 2002)

External and Internal Analyse

Internal Environment Analyse

SWOT Analysis [S-W: Internal Analyse]

The term is derived from the SWOT analysis of the use of SOFT Albert Humphrey original goal was to examine the company's design. The strength and the weakness factor is the internal organization; this is often done by analysing the financial situation of the organization's ability to position products, marketing, research and development capabilities, organizational structure, personnel, facilities, and the objective and strategy of the past. (Datamonitor, 2008)

Strengths

Well-known world brand

A strong and well-established R & D capabilities

Highly reliable in the field of numerous awards.

Strong financial position of high reserve

Significant new fleet of aircraft cabin design overcapacity.

The company promotes autonomy is therefore able to quickly response to climate change

Strong human resources personnel are highly motivated, service oriented and effectively.

Weakness

No domestic market

Low level of Internet presence

Separating the high costs of marketing

Revenues depend largely on major long-distance skiing and the class fee.

External Environment Analyse

SWOT Analysis [O-T: External Analyse]

Opportunity

Low product offered substitution

Many countries emerge from the economic crisis.

Singapore has a good relationship with other countries

High bargaining power over the aircraft manufacturer

Singapore Tourism Board to promote good opportunity mice traveling for business premium.

Threats

High fuel prices

impact of terrorism on the aviation industry

High bargaining power of travellers and travel agents

Conferencing is gaining popularity as a substitute for business travel.

Low-cost carrier to create and the potential business market premium.

PEST Analysis [External Analysis]

PEST analysis is widely used to organize the scan results to the environment. PEST refers to the political, economic, social and technology. It is important to recognise the key drivers of transformation of these factors and their impact on the external factors of SIA and the drivers are specific areas of interest. [Morrison, 2009]

Political

Singapore is a stable political environment, the ruling party is People's Action Party held by the Government of independences. Singapore government gave freedom of corporate governance and have set some restrictions on the industry. The company is able to make more than 90% of the decision on their own. The Board of Directors will only affect the company's director nomination for the company. The Board of Directors is also authorized emphasizes SIA. Over profits, compared to the public or social responsibility, the government supports the company's practice of cuts during the economic crisis [Sikorski, 1995].

Singapore's foreign policy is to maintain the good relations that have established diplomatic relations with 175 countries and has a particularly good relationship with a great economy in the country, such as France, Germany and the United Kingdom, Europe. The country has close to a free trade agreement with Australia, India, Japan, Korea, New Zealand, United States and more recently China in October 2008. The country has seen hard to build a strong bond with the country of the Middle East-intensive high-level visits between the two countries in 2008 and the signing of the GCC-Singapore Free Trade Agreement, 15 December, 2008. The Asia-Pacific region has increased during the unrest last year, particularly in developing countries. Thailand is a chronic disease in 2008, continuing the protest, and greatly affected the tourism industry. Terrorism is also affected by some of the country of India in 2008 and Pakistan in 2009 most recently caused hundreds of lives lost. Other includes North Korea missile crisis that forces change SIA. (Board., 2009)

Economic

The financial crisis, 2007 was severely hit countries around the world, which will bring the recession in most countries. The latest crisis, until 2008 and made a very careful financial institution money lending companies have gone through a difficult measures to reduce costs to survive. Combining recovery is shown in 2009, and the IMF has predicted that most countries are recession in late 2009. The price of oil was high dollar $ 140.00 a barrel in June 2008, has seen a sharp drop of about USD 40.00 in December 2008. Price then rose steadily to about USD 80.00, hitting the high end of the peak of October 2009. The price of oil has led to the promotion of the combination; some expect the price of oil would drop to a comfortable level USD 70.00 because most countries are still in recession and other speculation that it will continue to accelerate due. (Hooi, 2009)

Singapore Tourism Board, has no place in an extremely aims to promote Singapore's target Meeting, incentives, conferences and exhibitions. In February 2009, SGD 90 million Building opportunities to increase tourism, the program is started, follow the October 2009 announcement of a new Tourism Compass 2020 roadmap for strengthening tourism in Singapore in 2015 as the lead mice. Two integrated resort project costs SGD 18 million, Marina Bay Sand and Resort World Sentosa is also going to the end of 2010, which is expected to top 17 million drawn quality of tourism in the next 5 years. Singapore will remain to congregation the Formula One night race. Everything of is certainly a positive impact on their business trips to Singapore and to strengthen the tourism sector. (MFA, 2012)

Social

Singapore is a country of immigrants and a very diverse culture for nearly 35% of the population is living in the country. Although a high proportion of non-citizen nationals of that country continues to promote foreign talent and believe in the shortage of labour, if the migrant policy was to stop. The population consists of more than 75% in China, Malaysia and India to follow. Major religion is Buddhism, Islam, Christian, Taoism and Hinduism. Regardless of the rich Asian culture in the country is, Singapore is also one of westernizes Asian countries. Recent growing economy of China and the open-door policy in Singapore has landed major foreign workers arriving in mainland China, has created a cultural conflict for many Singapore. Singapore is known for its hard work and competitive mind-set of the work. Chinese traditional values ​​have a major impact on work culture, it is a high power distance culture, and the lowest level of the employee accepts a lower level and infrequent treatment decisions. They also highlighted the work of the team and maintain group harmonies. This has led to a very cooperative relationship to the employer. Unions in Greece are usually a good service for businesses and open the last labour strike of more than 20 years ago in 1986.

Technology

Inventions in the computer, and then you have a direct Internet endless expansion of electronic and telecommunications innovations in recent decades. Recent developments in the high videos provide a sharper image, coupled with high-speed computer processing power to compress and decompress these pictures and quicker data transfer rate, resulting in high-quality real-time video conferencing without a delay and clear sound and picture. This has become a very attractive video conferencing companies as a proxy for business travellers. With the advancement of technology, the definition of entertainment is also developing. Electronic devices are becoming more portable better performance. These devices are also becoming cheaper and more and more people consider it a necessity. Almost every household in Greece is a portable laptop, hand phone and digital cameras are full personalization of music, games, photos and videos. These items are usually performed together traveling. Widespread use of the Internet around the world was quick to modify the network address, to suit different languages ​​are used all over the world. Recently announced that the website is to provide a non-Latin characters, such as addresses, this means in the future, the Chinese character form the web address is very likely. Although the effect is still uncertain, but the company is the target market using non-Latin characters, such as language, such as China and Japan are forced to adapt to this change.

Industrial Analysis

Porter's Five Forces

Porter's five forces developed by Michael E. Porter in 1979, to the industry analysis and business strategy, Five forces are the threat of new entrants, competition among existing firms, the threat of substitute products or services, the bargaining power of buyers and bargaining power of suppliers. Freeman recommends the sixth power: the relative power of other stakeholders is added to the original Porter's five forces. This analysis often used to assess the SIA competitive position in the industry. (Hax, 2001)

The threat of new entries

The aviation industry requires huge investments; at least millions of capital is needed before the business process, which is an estimate that the company will need about $ 1 of capital to produce $ 1 of income. Many of the projects will require logistics; highly trained staff, including pilots, aircraft technicians and administrative staffs are often limited to specialized resources sector. Limited access to the airport and the road is also another station participating in trouble. Navigating the Asia-Pacific free trade and deregulation of airspace, more opportunities will be created. Since the introduction of the American Southwest Airlines in 1973, the low-cost carrier has gained popularity, and it has proven to be profitable. Many new companies are formed to provide this service in Asia around 1990, today more than 60 of them in Asia low-cost carrier provides mainly short flight from the same country. Some airlines have begun to offer long-distance low-cost carriers such as Air Asia in 2007, which offers flights to London from Malaysia, Australia and India. Despite the fact that these low-cost carriers is not even considered to be direct competition with SIA that the target market for these companies to cost-conscious traveller, it is probable that future N 'is not so far they dare low-cost carrier to buy insurance with a company in a specific business experience. This trend is particularly strong and should not be ignored by the PSC in the long term. It would be reasonable to assume that the treatment of new entrants is low at this time. (Calingo. 1997)

Rivalry among existing firms

Products in the aviation sector have several small shelf lives, the service is considered a loss when the plane takes off, and bear all the costs are not recoverable. The seats are usually about 75% of capacity. Singapore Airlines to manage and search for a direct competitor of SIA is very small; it is a Malaysia Airlines System, Japan Airlines, Cathay Pacific and British Airways. While there are a number of airlines to compete Co., airlines are very similar in size and market share in 2008 to study international passenger-kilometres flown to 83,000, and € 113 billion euros before the. While there is still growth potential in the aviation industry in Asia-Pacific region, the recent financial crisis has utilities worldwide to participate in the measurement of cost-cutting, striking "the aviation industry hard, estimated loss of EUR 11 billion in 2009 and $ 4 billion loss in 2010. Asia-Pacific region has made a positive growth of 2.1 % compared to the rest of the world, who are still in the red. Most of these operators work with the differentiation strategy approach, which focuses mainly on booking and hotel deals. Loyalty program is also imported from airline customers and maintain loyalty. In terms of marketing, most of these companies are members of the Star Alliance strategic alliance, as Skytrex, and code-sharing with other partner countries airlines to improve air connectivity and expansion of the road network. However, SIA has so far tried to provide reliable and provide excellent service and innovative in-flight entertainment system. All of this happened Co. face less stress on the competition, but the industry is still very competitive specifies the circumstances and Co. will lose if they do not reach the high-quality services. Competition is above average. (Chowdhury, 2009)

Threat of a substitute products or services

SIA is designed for business travellers, which focus on convenience and time traveling and less price-conscious, this is another means of transport has made a poor substitute for PSC especially in medium-haul flights and long term. But the technology has become a new treatment. With the advance technology, high-quality video conferencing can be a small investment to USD 18,500 and the cost of maintaining low. A new feature is the introduction of file sharing, computer monitor, record, while the conference call a conference call should be about the same meeting in person. Although video conferencing is a good substitute for a meeting, that one reason for business travellers, another function, such as inspection reports, the debate is a sensitive issue, grant agreement, or hand service personnel are still present. SIA is usually low in the medium replacement therapy.

Bargaining power of buyers

Air transport is commoditise all these years to get from place to place, does not make much difference to the airline of their choice, which is especially true for an airplane trip medium and large. Since the deregulation of the airspace, the recent release of the route Singapore-Malaysia asked for power with other organizations, such as the Firefly and Air Asia, markets and SIA. Malaysia Airlines System is a monopoly. Passengers of the industry consist of business travellers and tourists inconspicuous. Discreet passengers have flexible timing and frequency of flights, the price is the biggest concern. Business travellers are less sensitive to price, rather than short-term travel and travel comfort is a priority for them. All of these do not hesitate to use the airline if the price and schedule tailored to their interests. Kris position, position to earn free air miles with other incentives, such as the introduction of a luxury airport lounge and the flight was promoted to maintain the trust of our customers. Most of these approach traveller travel agencies to purchase tickets, some business travellers, even appoint a designated travel agency. Travel agents often a lot of ticket sales, with some of the power of travel agents and airlines usually gives a percentage commission on ticket sales. The Commission's policy of zero PSC boycotts September SIA Ticket agents, who represent 80% of total sales in India, forcing the company to reduce and lower flight to India. The buyer bargaining power is very high. (SIA Ltd, 2012)

Bargaining power of suppliers

SIA has a subsidiary in Singapore Airport Terminal Services ground handling services such as baggage handling and in-flight food and a bar. Another subsidiary, SIA Engineering Co. has been involved in the maintenance and servicing. SIA is also economically viable, therefore, highly dependent on the financial business processes. This leaves the main suppliers of the manufacturer's EPA air crafts. Jet Fuel, even if they are up to 40% of airline costs, is a commodity, which ranges from the crude oil price. SIA mainly for the purchase of Boeing and Airbus planes, there is no clear replacement, recycling and logistics costs will be charged for changing supplier, demand is relatively low for these providers in recent years about 10% of the world fleet inventory. SIA was continually updating its fleet, even the height of the crisis, which requires the sale of the manufacturer can shoot through financial difficulties. The average age of the equipment is 6 years and 2 months in 2008, Mark large aircraft market at the expense of planed SGD 11.800 million over the next five years the air. It is the largest customer for the Boeing 777-series and the first customers for the Airbus 380 This makes the SIA important customer and have a strong negotiating position with the manufacturer. (Reuter, 2008)

Chapter 4: Methodologies

The system is known as the collection of research methods. About can be collected either theoretical or practical, for example, on the management of strategic research can be conceptualized with operational planning and change management. Some important factors research methods research skills, ethics and reliability of the work done when you stop to analyse your data. Formulate research questions and sampling the weather may or may not likely, followed by measurement, which includes studies and scaling. After this, the study design, which can be either experimentally or quasi-experimental. Two the final stage of the analysis of data, and finally writing a research paper, which is arranged in graphs and tables carefully so that only significant relevant information is displayed.

Types of Research Methods

Primary Research

Secondary Research

Survey Method

Introduction of Primary Research

Primary research involves collecting new data through market surveys, telephone interviews, questionnaires and focus group interviews. This information is collected in direct contact with customers. This study is tailored to the needs of the research enterprise. The main survey data would be collected through surveys, interviews, focus groups, and direct observation of existing and potential customers, and the like. This information can provide insights into the needs and perceptions of the interests of clients of a product or service, the need for information or package delivery options or another. Primary sources enable the researcher to get as close as possible to what actually took place or event period. primary source reflects the perspective of the individual participant or observer. Many of the primary sources are unique and not found in the library or collection of manuscripts in the world. In this report the primary research sources are the major research methodlegy for analysing the scussell full strategis of SIA competive potion. Most of the data is colleted from quetinari survey and jornals.

Main advantages of Market Research

When it's come to the targeted treatment company requesting the inspection is complete control of the process and streamlines research regarding its objectives and scope is concerned. Examine the company may seek to focus their efforts to find information on a particular market, rather than focusing on the mass market. The data can be examined and interpreted by the operators according to their needs, rather than relying on the interpretation of secondary data collection. Collecting information on the principal owner of the information, and should not be shared with other companies and competitors. This gives an advantage over its competitors in the secondary response data. conducting their own market research enables companies to answer questions specific to their situation. The first survey is to collect information about marketing wants to know, and to report to benefit from commercialization. gathered from a dealer in the primary research themselves and are not usually share with others. Thus, the data can be considered hidden competition and promise to provide "informational advantage" is the company that conducted the primary research. Unlike other studies, in which a trader can use data that are not needed, the primary data collection, "focuses on specific issues related to the researcher increases likelihood that research funds are spent effectively.

Disadvantages of primary market research

Data collection using primary research is expensive proposition to engage marketing as a whole, is to plan everything. Given the nature of time necessary for the exercise exhaustive research by the precision is very high compared with the secondary data that can be collected and even less time duration. The cost and time, other resources such as labor and materials also make a greater number of surveys and data collections. Basic information can be very expensive, because there are many dealer participation and fees for the preparation and conduct of research may be high. If the research involves taking feedback from the audience, there is a high probability that the feedback given is not correct. Remarks by its very nature, most often unilateral, or given only for itself. Some research programs, but can provide information that could be very valuable, it reaches the dealer. Many are simply too large to perform all but the largest companies and some are not feasible at all. task of collecting primary data correctly requires the development and implementation of the research project. Go to Start decide to conduct the research project, the end point where the results are often much more than what is necessary for secondary data.

Introduction of Secondary Research

Secondary research involves the processing of data collected by earlier researchers. Is a result of the consultation and previous studies, such as reports, articles in newspapers and old projects, market research to get completed, this type of research is based on data collected from studies conducted by government agencies, professional associations and other organizations. Such research is less expensive as compared to basic research because they do not require new research approaches. However, the biggest drawback is that the data collected can be old and out of date and the results of the analysis may be inaccurate. It is also necessary that the previous studies were carried out the same objectives as required in this situation. SIA is set to perform a differentiation strategy is based on offering passengers a level of service rarely has exceeded the level of prices available in SMP. In fact, the company's commitment to customer service is legendary peak. He built a network wholly owned subsidiaries and joint ventures to provide operational support such as catering, management and maintenance of the terminals. SIA has outperformed its competitors and the quality of the products. SIA said the fleet of choice, because the signaling value chain, which indirectly indicates potential client can expect top-of-the-line, comfortable seating and a good journey. Malaysian airline began a very specific target market segment for limited services. However, over the years, the company has grown to offer a wide range of products and services on the market, but is the lead actor. The secret to the success of the company's business strategy, which includes high-quality services at competitive prices, allow for substantial investment in equipment and staff training.

Nature of secondary sources of information:

Secondary data, there are data that have been created by the hand of different problem. Secondary data are data that are already somewhere, collected for other purposes. Secondary data can usually be obtained more quickly and at a lower cost than the raw data. In addition, secondary sources can sometimes provide the information and the professional can understand - information that is not readily available or are too expensive to collect. Secondary data can also cause problems. The required information may be there - scientists are rarely possible to get all the information they need from secondary sources. Even when data are available, they can be very useful.

Advantages of using secondary data

Secondary research can be completed quickly, usually in 2-3 weeks. Substantial useful secondary data can be collected within a few days an experienced analyst, when the secondary data are available, the researcher simply to locate the source of information, and to complete the necessary information. Secondary research is usually cheaper than primary research. Large secondary research data does not require expensive, specialized and highly professional staff.

Disadvantages of using secondary data

Secondary research information is not available or available in sufficient quantities. Some secondary nutrients may be questionable accuracy and reliability. Even government publications and journals in statistics can be misleading. Many of the secondary data is several years old, and must reflect current market conditions. Magazines and other publications often accept articles six months before appearing in print. The study may be months or even years in advance. Information may be in a different format than required by the researcher.

Internal sources of secondary data

Each department has its own record of the organization, which represent potential important information. For example, a record of previous campaigns, the marketing department can be compared with copies of invoices of sales department in order to assess their effectiveness and to identify ideas for future campaigns. Past sales can also be used to identify trends and forecast future numbers. Increase the availability and use of credit cards has given retailers the opportunity to gather valuable information about different buying patterns of customers, so that they can target their marketing campaigns more effective. Internal sources of information should always be considered the first line of investigation for each query, because it is usually faster, cheaper and practical source of information available. Internal details of the exclusive organization, so that competitors do not have access to.

External sources of secondary data

There are several existing information sources outside the body may be beneficial. These include market research such as Mintel, Keynote, and Euro monitor. In addition, there are now several government sites. The company reports and websites that are readily available and contains a limited amount of information about the commercial versions, the media in general food stores, files of newspapers such as the Financial Times and the Guardian, and magazines such as the Economist is now available online, which makes it a useful starting point for research

Survey Method Used to Conduct This Project

Survey research is the systematic collection of information on respondent's the purpose of understanding and predicts the behaviour of some of the interest the population. As the term is commonly used, this means that a specific version of information has collected by questionnaire. A questionnaire management of a person or group of persons will be invited for interview. As noted above, the degree of structure refers to the extent to which the researcher is limited by the following composition and instructions for the investigator using a questionnaire "tends to be less than the interview. To utilize is also possible for less trained to Researchers format because structured functions are mostly just by reading the questions and advantages recording answers. These structured interviews can be purchased at the expense of a richer and more complete information about qualified researchers could produce if the freedom allowed. Relatively structured interviews with the growing importance of marketing surveys less is known about the variables of the research. Unstructured techniques Thus, for exploratory research and explore topics or unstructured, such as personal values ​​and motivations for buying. (Johnson, 2007)

Types of Inquiry report research

Studies have generally classified method of communication used in the interviews: personal, phone, mail, or computer. In this report, researcher has chosen personal interviews for the research survey, as Personal interviews are widely used in marketing research. In a personal interview, the interviewer asks the respondent questions about the status of the face-to-face. The interview can take place in the house of the accused or a central location, a shopping centre or office as a study. The popularity of this kind of personal interview is the result of the cost advantage of door-to-door for an interview, the opportunity to make products or equipment that can be transported easily, most researchers control and less elapsed time required.

The criteria for selecting research methodology

Criteria needed to assess the type of survey used in a given situation. Those criteria are

Complication of the data

A chosen accuracy

The control model

Requirements of time

an acceptable level of non-response,

Budget

Research timeline

This survey is Conduct on 100 people in Singapore. 50 Male and 50 Female. In order to analyse the report the researcher set timeline for primary research questionnaire. Since the development of research purposes is usually the main data collection at the same time, researcher often overlooks the equally important for the design, data analysis, and writing. To help manage time, researcher creates a researcher's timeline is presented here:

A timeline for research survey

Chapter 5: Results

The purpose of this questionnaires survey is to have a better understanding that how people feels about Singapore airlines and their comment. The results of survey were written in a standardized format. The researcher examines each report and gives summary of the results of survey. This analysis was to determine the extent to which the hierarchy of methods and analysis tools can be identified that provides a gradually increasing capacity. Each of viewpoints discussed in following:

The general conclusions

Responses to the survey show that in many cases, there are many tips given to those responsible for safety system. Strong links with management, there are many airlines, but some of the respondents indicated that the Office of the SIA not hear it could be operational issues, such as the creation of a new position. However, some respondents suggested that these elements are not particularly useful, because people tend to believe that it cannot happen at SIA. Lots of time spent on routine tasks reports, phone calls, briefings data entry, administrative tasks. Many respondents said that too much time is spent in the short term, or reactive work, and want to do more analysis and prevention services.

Specific answers to questions

In the second analysis grouped responses to each interview question and summarized as conclusions for each question. This allowed researcher to find common ground in a variety of responses, and the obvious differences between the airlines. In addition to the previously mentioned other major conclusions of this analysis are as follows, SIA industry is highly variable, and gives little attention to detailed procedures. Most respondents seemed very satisfied with the services of SIA, even if they differ greatly between airlines.

Chapter 6: Recommendation

According to the survey, Singapore Airlines has done very well in the market. Still, continuous improvements and changes are needed to handle with SIA in the rapidly changing and challenging world. By using the link to the Singapore Government and trademarks and fame, to explore new markets in countries where potential demand and can control the way the poor profitability of their land, which is out of the economic crisis. With a strong Research & Development resources to a marketing campaign using the Internet, which can reduce the marketing, it is a good service focused on culture and well-qualified front-line staff before it is possible to promote relations between the passengers' personal service, weakens the lower commoditising times, and differentiation. The company can maintain its position, to avoid even the fierce price war, since they need to rapidly expand their market share. Prices became a sensitive issue in this Airline industry, more and more customers turn to price-conscious, even if the product you want is high quality and good service. Since this is a SIA charge higher prices than its competitors by improving the tickets that are innovative and creative development services. This can reduce or flyers to passengers Singapore Airlines, but customers can choose their economic competitors journey. Ads play an important role in the SIA growth, ads will reduce the sales force; develop a willingness to accept the product, as well as SIA create a demand for the product. An innovative and creative advertising service to SIA always surprises consumer's attentions.

Chapter 7: Conclusion

SIA has constantly beaten its competitors. SIA never posted a loss every year, has achieved a high yield and high relative to its industry and has received hundreds of awards for the quality of service. To remain competitive, the SIA will maintain the right strategy. Operating strategies false seek to influence the aircraft and long-term business strategy. Therefore, SIA management must always ensure that the decisions that they use must support the business strategy of the company. Despite this, people have to choose when they were hired; the correct behaviour is rewarded appropriately. SIA has a clear focus on what they want to offer their customers high quality services. Management can communicate with their employees and treat them as assets of the company, who are committed to providing excellent service.

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