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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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