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Singapore International Airlines Case Analysis

Autor:   •  September 14, 2011  •  Case Study  •  552 Words (3 Pages)  •  1,776 Views

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MEMORANDUM

DATE: October 16, 2006

RE: Singapore International Airlines

This memo will address the global business strategy of Singapore International Airlines, the environmental forces facing the company and recommend the equity investment in Virgin Atlantic to overcome the challenges facing the airline.

The Affects of Environmental Forces on Global Strategy

The current global business strategy of the Singapore International Airlines (SIA) is a global product/ market approach to growth. SIA differentiates themselves by providing quality customer service and marketing that service in the same fashion throughout the world. Socio-cultural, technological, economic, and political forces had various affects on SIA's strategy. Deregulation, privatization, and new technologies reshaped the airline industry on a global level. Factors affecting SIA’s task environment included: the imitations of SIA’s service innovations, alliances with increasing geographic reach, decreasing regulatory barriers via between countries, excess capacity, and competitive pricing.

The SIA’s business strategy is the generic competitive strategy of differentiation. Differentiation creates value through uniqueness, superior quality and services. This business strategy of differentiation did correlate with SIA’s global business strategy to pursue a global/product market approach to growth through their core competency of superior customer service. The company was at the forefront of service and their quality employees provided them with a competitive advantage over other airlines in regards to service using an oriental mystique that was prevalent in the Western world were the company sought to grow.

An Opportunity for Investment in Virgin Atlantic

Advances in transportation, communication,

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