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Swot Analysis for Sia

ASIA is founded since 1972 and has became the most respected travel brands around the globe. The youngest aircraft fleets in the world to destinations spanning over 6 continents, with high standards of care and service. They made a habit of leading the way, alone the way developed a reputation for being an industry trendsetter. * Their ever-growing list of industry-leading innovations includes the following firsts: * First to offer free headsets, a choice of meals and free drinks in Economy Class, in the asses * First to introduce satellite-based infilling telephones in 991 .

First to involve a comprehensive panel of world-renowned chefs, the International Culinary Panel, in developing infilling meals in 1998 * First to offer audio and video on demand (AVOID) capabilities on Griswold in all classes in October 2001 * First to operate the world’s longest non-stop commercial flight between Singapore and Los Angles in February 2004 on the AWAY-500, and then surpassing the record (in terms of distance) later that year with the non-stop service to New York (Newark), in June 2004 * First to fly the AWAY from Singapore to Sydney on 25

October 2007 * The airline is a subsidiary of Singapore government investment and

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holding company Tamales Holdings which holds 54. 5% of voting stock. Singapore Airlines is headquartered at Airline House, by Changing Airport in the Changing area of Singapore. * Has a strong presence in the SEA region, with it’s subsidiary Silkier, connect Singapore with more international destination than other SEA airline. * It flew 1 1. 0% of all international traffic into and out of Australia in the month ended March 2008. ASIA has taken advantage of liberal bilateral aviation agreements teen Singapore and Thailand, and with the United Arab Emirates, to offer more onward connections from Bangkok and Dublin respectively. * Their strength invited protectionist. It did not gain access on transpacific routes from Australia to US. They deferred decisions and ASIA wants to dramatically expand service to Canada and establish a North America hub in Vancouver however deterred by Canada’s policies. STRENGTH ANALYSIS * Singapore international airline culture is a corporate culture, their corporate culture encourage the labors to improve cabin services.

Company culture gives hem the competitive advantage and it is competing in the marketing lead front. * The Singapore airline’s image and reputation are shown high impact on the people in Singapore due to their commendable service. * Structure of the ASIA is strong enough. They are having subsidiaries’ this wills to give more profits and they formed subsidiaries in Singapore out of Singapore. They are providing not only passengers Soot Analysis for Asia By alliance countries. ASIA has fully owned no frill airline services. These structures are holding the Sis’s market share in high level. Employees are the asset of their strategic. Their employees are from global labor market and specialized in their fields getting high effective and efficient work. * They have established hubs and subsidiaries in many countries it is strength of managing their resources effective and efficiency. It will increase the profit of ASIA. * ASIA has the strong experience of more than fifty years from the beginning of the MASS. Experience is also strength of ASIA. Because it is widely known its services in time based. It will have good experience management and managers.

Experience came up with new ideas to satisfy their customers. * Online ticket booking reduce operational cost and reduce hassle. * ASIA has a big operational capacity it is strength of the company. It gets fuel in from subsidiaries located in other countries to reduce petrol cost. * ASIA market share report in 2002 December is 18. 47 per cent. Recent report is around 25 per cent. The growth of the market share is strength. * ASIA has good customer service and builds market share. * ASIA won many awards * Scoot offers PAD to long haul travelers.

Weaknesses – Singapore Airline(Kenneth) It is too expensive to travel that middle class people can Just dream of traveling via Singapore airlines. ASIA is too dependent on premium travel. ASIA has excess capacity in its cargo fleet, not efficiently in using resources. ASIA is considered small scale in the global market. US airlines with fleet size of at least 300 and Delta Airline with 706, compared to ASIA with 106. Customers naturally develop a very high expectation level and therefore very minor fault could blemish its repute easily. ASIA have a low asset turnover. ASIA have an unbalanced business portfolio.

Threats The fuel price has risen by over 50% in the past five years. The consistently increasing of fuel prices resulting in increasing of the transportation cost. The increasing of flying cost hence increases the ticket fee for each flight. If Singapore Airlines wants to remain competitive, it may not set the ticket price too high. Therefore the profit gain from each flight will decrease. If the cost and the gain are unable to balance, the company may face a difficulty in capital turnover. Singapore Airlines is a high class airline which the ticket price is higher than the industry average.

The increasing in numbers of low-cost airlines may increase the intention in the airline industry. Most customers may turn to low-cost airlines as they are much cheaper compared to Singapore Airlines. This causes lost in customers and sales. New affordable luxury airlines entrant to the market may increase the competition as well. Customers have more choices and their preferences may affect competitiveness of Singapore Airlines. Singapore Airlines may lose some customers to those luxury Opportunities Singapore Airlines won many awards such as the World’s Best Business Class Award 2012 for its good services.

It urges many Journalists to write about ASIA. Media felicities help ASIA to attract more customers and to build goodwill to attract more shareholders or investors. As a result, the company is able to enlarge its business. Globalization causes more business travels though out the world. Businessmen who have sponsors or are rich may choose higher class airline such as Singapore Airlines. This is a very huge potential market for ASIA as the globalization is growing and the number of rich people is increasing. Singapore Airlines saw the potential market on the short distance travelers.

These travelers usually choose budget airlines which the tickets are very cheap in price. Therefore ASIA introduced its own budget airline, SCOOT last year. This enlarges the market from the more affordable ticket price. For the goodwill of ASIA, people may choose Scoot compare to other budget airlines. Singapore Airlines flies to 62 international destinations in 35 countries. ASIA can enlarge its business by having more destinations in more countries. There may be a very large potential market in those developing countries as more and more businesses are setting up and more and more business travels are required.

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