September 18 2006
Contents
Introduction 3
Most important trends in the airline industry 3
The position of Singapore Airlines and reasons for prior success 4
Current strategy according to Rust, Norman and Dickson 6
The major issues Singapore Airlines is facing 7
Is Singapore Airlines current strategy sustainable for the future? 7
SWOT analysis 8
Future strategy for Singapore Airlines 9
References 10
Introduction
The purpose of this paper is to advice the management of Singapore Airline (SIA) which strategy they should follow. By doing so we start with discussing what the most important trends in the airline industry are. Subsequently we look at the current position of SIA and explain there prior success. After discussing the major issues that SIA is facing we give a SWOT-analysis to recommend a strategy for SIA.
Most important trends in the airline industry
In our assignment we differentiate different trends that are mentioned in the case study. We use these trends to develop a strategy for Singapore Airlines (SIA). There are trends mentioned in the case that we think are not relevant trends anymore at the moment. This can be for example because all airline companies have already jumped in this trend or because they happened a long time ago. Some trends are more difficult to decipher. We will give argument if we think one of these ?difficult' trends is not a relevant trend at the moment.
The first trend that can be observed is the improving level of service offered by some airlines. Airlines that want to provide a superior customer service compete fiercely for premium passengers by introducing more and more sophisticated and consequently extremely expensive prod ...