Singapore Airlines SWOT, STEEP Analysis
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Singapore Airlines has several strengths including its strong global brand, premium service reputation, and government backing. However, it also faces weaknesses such as declining margins and market share due to low-cost carrier competition. Opportunities exist in leveraging its brand image to expand destinations and form partnerships with other travel companies. Threats include increasing fuel costs, economic instability, and competition from carriers like China Southern Airlines. A STEEP analysis found that technological innovation helps Singapore Airlines stand out, while social trends and a stable political environment in Singapore are beneficial.
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Singapore Airlines SWOT, STEEP Analysis
- 1. Name: Nida Barros ID: 6019088 Section: 11 SWOT & STEEP of Singapore Airlines Strengths A strong global airline brand with a strong backing from its government Known for its premium and excellent service and unparalleled customer service and hospitality High brand visibility of Singapore Airlines through sponsorship of events One of the top airline brands in terms of market capitalization and number of passengers carried Weaknesses Poor margins and market share decreased because of the growth of low-cost airlines and competition Low capacity comparing to competitors like China Southern Airlines, China Eastern Airlines, Air China, Emirates Airline, Qatar Airways and Etihad Airways Rely heavily on international traffic because domestic market in Singapore is limited Ticket price is too expensive if passenger travel as a family in order to save cost unless they are travelling alone or travelling to longer destinations and willing to pay more for better service Opportunities Leverage on its high value brand image and expand their list of destinations. Many people would fly with Singapore Airlines since it has a good reputation and SIA would be able to expand its market share Build more partnerships with other airlines, world top hotels, cruises, telecommunications, car rentals and credit card companies. For booking all the necessities with SIA for the trip to helps to save troubles for passengers. At the same time, these companies will get regular customers. SIA will earn profits and giving quality services to its passengers. Threats Price of ticket/fee increased because of the price increasing in oil and fuel Unstable economy will affect SIA eg. war, disaster or protest going on in a country. The pricing of the flights will not be fixed and passengers will not be satisfied. They will have to bear any loss. Competition from brands such as China Southern Airlines, China Eastern Airlines, Air China, Emirates Airline, Qatar Airways, and Etihad Airways
- 2. STEEP Social Change in Customer perspective over low cost airline People who is less wealthy tends to use low cost airline because it is affordable and could save cost. Customer preferences Different generations, demographic and sociological attributes tend to have different habits so SIA needs review the social attributes as it may present future opportunities. Technological Famous for technologies investment. They introduce many technologies into its services. They were the first to fly Airbus-380, the first to offer in-flight entertainment system for customers, the first to provide global satellite in flight telephone service. With that, they attracted huge global publicity, boost its brand image and differentiate itself further from its competitors Adopting new innovations such as headsets, reclining seats and seatback entertainment systems Environmental Integrating Green issue into the corporate social responsibility (CSR) policies and marketing plans in order to carry out sustainable operations. Eg.reduction of the carbon footprints Economic The growth in fuel costs Interest rates Taxation changes Economic Growth Exchange rates Inflation Political A stable political environment which strongly backing Singapore Airline by government Allow freedom in corporate governance and have set little restriction to the industry. The company are able to make over 90% of the decision on its own. The government only influence the company by appointing director over the company, and supported the company for retrenchment practice during economy crisis