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GROUP 15 : Nima Murlidharan,Kithu

Varghese,SwaroopMathew,Renjith Pushpan

1

Kithu vargheseSwaroop C.mathew

Renjith Pushpan

Nima Muraleedharan

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ABOUT THE COMPANY

Started as a Malayan Airways in 1947 byOcean Steamship Company of Liverpool, theStraits Steamship Company of Singapore &

Imperial AirwaysRenamed as Malaysian Airways in1963 &

Malaysia-Singapore Airlines (1967)

In 1972 spilt in to Malaysian Airlines &Singapore Airlines

The CEO of the company is Goh Choon Phong

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AT PRESENT

Singapore government majority

shareholder

Number of aircraft: 109

Number of employees: 14,066

2,174 Pilots & 6,914 Cabin Crews

Passengers per year: 18.96 millionNumber of destinations: 99

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A GREAT WAY TO

FLY

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DESTINATIONS

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VISION and MISSION

MISSION:

Dedication to the highest quality of CustomerService delivered with a sense of warmth,friendliness, individual pride, and Company Spirit.

VISION:Singapore Airlines has a responsibility not only tobe an excellent company, but also to be an excellentcitizen of the world by enhancing the lives of the

people we touch. With that aim in mind, we havemade many commitments to the arts and education,to our communities, and health and welfare of ourcountries citizens, and those in the countries we flyto. with this goal in mind we have also made a

strong commitment to preserving the environmentand our world for future generations.

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SWOT

STRENGHTS Brand name and the Singapore Girls

Cabin crews

Youngest fleet

Diversified in related industry and

joint ventures Technology

Ground Services

Innovation

In-flight facilities

Timing

WEAKNESSES

Independent business units

Pricing policy

Infrastructures

OPPURTUNITIES

Demand

Technology

New markets and destinations

Growing low cost airline

market

THREATS

Competition increasing

Fuel priceTerrorism

Increasing aircraft price

Accidents and Security threats

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PEST ANALYSIS

Degree of intervention in the economy

Stable political environment

Operations in international markets

Interest rates, taxation changes, economic growth etc..

Good reputation in Singapore and places of operations

Impact ofchanges in social trends

Should be sensitive to customers socio-cultural norms and values

Broad minded to accept mistakes increases trust and goodwill

POLITICAL

ECONOMIC

SOCIAL

TECHNOLOGICALImpact of new processes and new products concern about new upcoming technology

Technologically advanced ergonomic seats in the business and executive class.

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ExcellentServices

Cost effective

services

Effectiveexecution of

services

CoreCompetencies

Pursuit ofexcellence

Safety

Customer first

Concern for staff

Integrity

Teamwork

Core Values

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Human Resource Management

There are four categories of staff in SIA1. Senior staff

2. Technical crew

3. Cabin crew

4. Ground staff

SIA follows a highly aggressive recruiting process taking in only thebest

Rigorous training programs for the crew to ensure service excellence

Staff centric program

Cabin crew : effective appraisal programs

General staff : alternative employment opportunities

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Operations Management

Total number of aircrafts : 109

Flights:

International

Regional : Silk Air

Low Cost : Tiger Airways

39 countries and 99 destinationsSIA Cargo

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Aircrafts:

Routes :

North & South America

North & Southeast ASIA

West ASIA & Africa Route

Europe

Australia & New Zealand

Airbus A330-300 19

Airbus A340 500 5

Airbus A380 800 11

Boeing 747 400 7

Boeing 777 200ER 36

Boeing 777-300 12

Boeing 777- 300 ER 19

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Marketing

Differentiation: The Singapore Girl Personalization : Male and female cabin crew

French designer Pierre Balmaindesigned a special

version of Malaysian Sarongkebaya.

Encapsulates Asian values and hospitality.

Caring, warm, elegant, gentle and serene.

Became so iconic that Madame Tussauds

Museum in. 1994 as the first commercial

figure ever

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Financial Performance

As the aviation industry recovers from the

impact of the financial crisis, the Group

achieved a net profit attributable to owners

of the Parent of $1,092 million for the 2010-

11 financial year,

An increase of$876 million from the $216

million profit last year.

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Total revenue $14,525 million

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Operating profit $1,271 million

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ALLIANCES

Singapore Airways is a member of Star

Alliance. In order to become members , all

airlines must comply with the highest

industry standards of customer service,

security and technical infrastructure.

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COMPETITION

International competitors Competitors in Asia

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SUBSIDIARIES & JOINT VENTURES

Regional flight : Tiger Airways

Holiday Packages - Trade wind Tours and Travels

Expansion and Vertical Integration:

Singapore Engine Overhaul Centre

International Engine Component Overhaul Ltd

Singapore Aero Engine Services Private Limited

SembCorp Network Pte Ltd20

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CSR ACTIVITIES

1. Community welfare2. The Arts and Heritage

3. Education

4. Harapan Rainforest Initiative5. Flight Operation Procedures that Reduces

Fuel Burn

6. Participation in the Asia and Pacific Initiativeto Reduce Emissions (ASPIRE) Program

7. Commitment to Achieving Carbon-NeutralGrowth

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BUSINESS STRATEGY OF SIACore Strategy:

1. The business mission.

2. Product/ Market Scope.

3. Basis for Differentiation

Strategic Resources

1. Core Competencies

2. Strategic Assets

3. Core Processes

4. Configuration

Customer Interface:

1. Fulfillment and Support

2. Information and Insight

3. Relationship Dynamics

4. Pricing Structure

5. Customer Service

The value network

1. Suppliers

2. Partners

3. Coalitions

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STRATEGIES OF SIA

Achieved the outstanding performance by

implementing a dual strategy:

Differentiation through service excellence and

innovation.

Cost leadership in its peer group

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Corporate Level Strategy:

SIA follows a strategy of related diversification. The

Singapore Airlines Group has 36 direct subsidiaries

and associated companies. SIA Group subsidiaries

include Singapore Airport Terminal Services,

Singapore Engineering Company, and SingaporeAirlines Cargo.

As part of its international strategy, in April 2000 SIA

joined the Star Alliance, one of the three major airline

alliances

Use of information technology is an essential feature of

SIAs strategy both in enhancing customer service as

well as increasing efficiency

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Business Level Strategy:

Deliver premium service to very demandingcustomers at a level of costs that approach

those of a budget carrier

Excellent Services : pre flight , in flight and

post flight

Advanced technology and innovation

capabilities

Human Resource Management

Effective Communication

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Differentiation and Cost Leadership Strategies

Differentiation Cost Leadership

Positioning of service excellence &

superior quality, brand equity

Young fleet

Developing the Singapore Girl Labor costs compared to major

competitors (16.6% vs. 30%); continuous

drive for productivity, cost reductionprograms

In-flight experience Related diversification through efficient

subsidiaries that contribute to bottom

line

Cultural values and practice of constantinnovation and learning Cultural values: cost consciousness,obsession with reducing wastage

Changi Airport- one of the worlds best [ related

infra structure]

Innovation not only increase differentiation but

also efficiency

Premium pricing in Singapore and in business/

first class as differentiation indicators.

Changi Airport- one of the most efficient

[related infrastructure]

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Branding Strategy:

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ORGANIZATIONAL ACTIVITY SYSTEM

The five pillars of SIAs organizational

activity system

1. Rigorous service design and development,

2. Total innovation

3. Profit consciousness ingrained in all

employees

4. Achieving strategic synergies

5. Developing staff holistically.

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MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

PEOPLE

PROCESS

PHYSICAL EVIDENCE

On - time Smooth Flying Experience

Cheaper when compared to competitors

with better service.

Available in all 5 continents99 destinations, 39 countries

Customized travel packages

Avalon waterways

Brand Icon : Singapore Girl

Sponsor of 2009 Youth Olympic Games

SIA holidays

Employees, Management & Consumers are the key

people

Efficiency in operations to ticketing to in-

flight services

From the ticketing service to the time the flight

lands the attitude of the crew is crucial

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MARKET SEGMENTATION Geographic:

Located globally with varying

needs and wants

99 destinations, 39 countries, 5

continents

Strong presence in south Asian

region- SilkAir

Captured major markets in

Kangaroo Route

Demographic:

Based on income and social class

Psychographic:

Values, personalities, attitudes and

lifestyle aspirations of each segment First, Business and Executive

economy

For customers who do not like to pay

the extras Tiger Airways

Provide status preferences to

consumers.

Behavioral:

Frequency of consumption, buyer

readiness and commitment. Kris Flyer and PPS Club

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MARKET POSITIONING

Uses the Singapore Girl-Communicates a sensory / emotional experience withcommitment to service and quality excellence.

Tiger Airwaysa pure low cost carrier

Connects to over 5 continents through itsmodern fleet, distinctive in flight experience

and customer and service excellence

Dual Strategy - Differentiation and CostLeadership.

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MARKET SHARE

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ACCIDENTS

March 1991

Flight 117 hijacked by 4 Pakistani men

Oct 2000

Boeing 747-400 crashed in Taiwan after take off killing 83

and injuring 71

March 2003

Boeing 747-400 suffered tail strike on take off for New

Zealand

Oct 2010

Oil stains on three Rolls-Royce engines of A380 causing

engine failure in Qantas. 33

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SUCCESS FACTORS OF SIA

Relentless commitment to serve customers.

Professionalism

A strong vision and mission.

Personalized services - treating all customers

alike

Continuous appraisal and reward system for

the employees

Effective communication and promotional

strategies

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Youngest fleet

Continuous innovation and investments

SIA mobile

Booking, Kris Flyer services

Choice of seat

Mobile check-in

In-flight entertainment

First to use new aircrafts like Boeing 747, Boeing 777

In-flight e-mail services , e-mail check-ins

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Different cuisine programs: Book the cookfor business and executive class International cuisine

Well trained cabin crew

Gives a personal touch to regional

customersin flight announcements in the

regional language.

Small acts ensuring customer happiness Hot towels with a unique and patented scent

Personal entertainment systems

Video-on-demand in all cabin

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And last but not the least

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