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Singapore Airline Case

Autor:   •  April 5, 2013  •  Essay  •  327 Words (2 Pages)  •  930 Views

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Executive Summary

Strategic management is of substantial significance to an organisation’s business plot and the successive effects on the operations, performance and future growth.

Travellers these days are selective, demanding and well informed. With lack of information, satisfaction or guarantee, they leave a user even if they have been loyal for the longest period. This resulted organisations these days to face constant challenges in retaining these customers due to changing demands, expectations and even other alternatives. The team will touch on how Singapore Airlines (SIA) progressed from a fledging player into a market leader in the travel and airline business, and how it is now challenged to uphold its position and preserve its brand value.

In the early days, when bilateral air service pacts negotiated amid individual countries; limited the routes of an airline, henceforth the airline’s advancement. The global airline industry has countered to this challenge with a fusion of acquisition, strategic alliance, for instance, the STAR Alliance and correlated divergence approaches.

Then, in early 2004, the advent of low cost carriers in Asia posed a threat to SIA’s upheld and successful business model, established on premium airfares for premium services. To maintain the airlines ’shareholders anticipated returns, while enduring with its well-built and highly efficient work systems and processes, SIA had to develop different cost cutting measures in its operations. The challenge for SIA was how to balance a healthy profit range for the shareholders and at the same time, effectively manage the constraints of the immense changes happening in the airline industry.

Hereby, the report will begin with an introduction of the organization; an in-depth analysis of the organization will be done, where a thorough exploration of the internal and external environment will be included, together with the


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