Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Recommendation of options that are available for Singapore Airlines for their future strategy direction - Essay Example

Comments (0) Cite this document
During the recent years, SIA have diversified into hotel chains as well as other travel and tourism sectors. It further implements geographic diversification…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Recommendation of options that are available for Singapore Airlines for their future strategy direction
Read TextPreview

Extract of sample "Recommendation of options that are available for Singapore Airlines for their future strategy direction"

Recommendation of Options That Are Available For Singapore Airlines for Their Future Strategy Direction Singapore Airlines (SIA) has been noticed to implement diversification strategies in its various business activities. During the recent years, SIA have diversified into hotel chains as well as other travel and tourism sectors. It further implements geographic diversification which has resulted in reducing the economic risk to a significant extent. Hence, from an overall perspective, it can be stated that the company has been focusing on its diversification strategies by a large extent in its traditional as well as contemporary performances. Besides, SIA possesses more than 20 subsidiaries which cover a wide array of services related to the airlines industry. These services include variety of services ranging from cargo facilities to engine repairing packages as well. In this context, it can be stated that SIA has been implementing product development strategy with utmost concern towards its long run competency and sustainability. The major subsidiaries of SIA in this regards are the SIA Cargo, SilkAir as well as Tradewinds Tours and Travels among others. In addition, SIA has also been implementing the market penetration strategy by developing the products along with the offered services on a continuous basis. In this regards, SIA allows discounts of almost 50% on the “Exceptional Value Deals” during the holiday seasons focusing mainly upon the seasonal travellers (Kenny, 2009: 153-196; Kumar & Phrommathed, 2005: 50-97).
However, in comparison to all the aforementioned strategies, SIA have been extensively concentrated on the diversification approach as its future strategic direction which is quite likely to influence a few noteworthy risk factors in relation to its operations. For instance, if a business organisation diversifies on a continuous basis and in an extensive way, it may result in increasing complexity at the operational level and likewise creating a negative impact over the productivity level of the company. Therefore, it can be advised that SIA should render equal importance to the product development strategies as well with the intention to fortify the product life cycle and simultaneously boost its profitability in the national as well as international market. This would facilitate SIA to develop its existing products and also aid the group to introduce new products for the current market. It is worth mentioning in this context that the company can also opt for market penetration and market development strategies. However, each of these strategic options is noted to possess certain limitations towards SIA.
For instance, market penetration strategy is not likely to be quite effective or necessary for SIA. It is fundamentally owing to the reason that SIA might have to witness fierce competition from the international players and thereby expose the company towards larger market risks. From a similar perspective, the company had been focusing on its market development strategies in the international forefront being allied with various international airlines service providers such as Air Canada, Air India, South African Airways and EGYPTAIR among others (Hirschey, 2008: 567-570).
Considering the aforementioned various facts regarding the market growth of airlines industry, it can be stated that the product development strategy would facilitate SIA in retaining its already huge customer base. Hence, it can be recommended that product development would be quite effective for the future growth of the airline service provider. The strategies of market development or market penetration as well as diversification would probably lead the organisation towards greater exposure to risks engaging huge amount of investments. Evaluating the currently applied strategy of diversification by SIA and the degree of risk exposure likely to be witnessed by the company owing to its massive diversity, it can be stated that the product development in its future strategic direction would prove as more secured and beneficial.
Kumar, S., & Phrommathed, P. (2005). New product development: an empirical study of the effects of innovation strategy, organization learning, and market conditions. New York: Springer.
Kenny, G. (2009). Diversification strategy: how to grow a business by diversifying successfully. United States of America: Kogan Page Publishers.
Hirschey, M. (2008). Managerial economics. United States: Cengage Learning. Read More
Cite this document
  • APA
  • MLA
(“Recommendation of options that are available for Singapore Airlines Essay”, n.d.)
Retrieved from
(Recommendation of Options That Are Available for Singapore Airlines Essay)
“Recommendation of Options That Are Available for Singapore Airlines Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Recommendation of options that are available for Singapore Airlines for their future strategy direction

Juwan howard case study

4 Pages(1000 words)Essay

Singapore Airlines External Factor Analysis

...leadership which is the main contributor of it getting the competitive edge it has over its rivals (Conger, 2007). Planning Singapore Airlines has a comprehensive strategic management system whereby the management sets out short term and long term goals and strategies to achieve those goals. Strategic Planning enables the firm to seek prospectus directions and adapt the appropriate strategy in relation to the competitive market positioning and external factors (Hill, 2008). For example, the decision to sell air line tickets online consisted of extensive market research, strategy analysis and strategy selection process....
8 Pages(2000 words)Essay

Strategic Management in Singapore Airlines

...for the service aspect of the company. She is also a member of Board Nominating Committee (Asia Travel Tips, n.d). “Helmut Gunter Wilhelm Panke” holds the position of nonexecutive independent director of the company since September 01, 2009. He is a PhD in Physics and he is trained as a nuclear engineer (Singapore Airline Annual Report, 2011). Lastly, “Lucien Wong Yuen Kuai” was appointed as a non-executive independent director of the company on September 01, 2007 (Singapore Airline Annual Report, 2011). Marketing Strategy The main marketing strategy of Singapore Airline like any other service providing...
5 Pages(1250 words)Research Paper

Ethics of Singapore Airlines

...; the airline expects to expand the same to almost all flights (Singaporean Airlines, 2012b). Singapore Airlines also understands that its fleet is somewhat contributing to the overall carbon emissions in the world and in order to control the same, plans have already been put into place. Abiding by the guidelines set by the International Air Transport Association, the airline has placed three set of goals for future. First, during the period of 2009-2020, the airline would aim at achieving 1.5 percent average annual fuel efficiency so that a cap could be placed on the carbon emissions. Second, considering the fact that...
7 Pages(1750 words)Research Paper

Operations & Quality Management (Singapore Airlines)

...24 years back; a track record almost extraordinary in the viciously cyclical airline business. Singapore Airlines is quite an absurdity. It is the state-run airline for a country that is basically just a city; a nation that has residents of no more than 3 million; and a country that is just 250 kms across with no domestic routes to take over. Regardless of this it has managed to regularly post profits in one of the globe's mainly returning industries. According to higher executives, SIA evidently understands the high directive placed on it by discriminating and increasingly challenging customers. This causes a severe challenge internally in terms of...
6 Pages(1500 words)Essay

Financial Management: Singapore Airlines Western Asia; Singapore Airlines also took the initiative to offer free of charge headsets, options of food in conjunction with free drinks in the economy category. It was also the first airlines to come up with satellite-supported in-flight communication system in 1991. The company is also credited with the idea of developing an International Culinary Panel comprising of worldwide prominent chefs, in addition to, the commencement of audio and video on choice facilities. Meanwhile, female air travel attendants, known as the Singapore Girls, have carried on the tradition of dressing in sarong kebaya outfit. Today, Singapore...
7 Pages(1750 words)Assignment

Singapore Airlines Limited (SIA)

...leadership. SIA Leadership’s Style: a Reflection on the Company’s Strategy and Success SIA has enjoyed huge success in implementing its functional and operational strategy. The company has achieved all this because of valuing change and transformation. SIA aims to conquer the airline market by optimizing on the company’s core strategies, that is: excellence in service delivery and cost effectiveness. In order to realize these strategies, the company needs a high performance workforce (Pawar & Eastman 1997, p. 83). Excellent service in terms of customer care can only be achieved by highly motivated or inspired staff (Bass & Avolio 1993, p. 115). There...
18 Pages(4500 words)Assignment

Strategy Recommendation

...Strategy Recommendation Introduction The internet provides organizations with an effective platform to communicate with consumers. Various organizations use the internet to market and sell their products. Producers can establish the performance of their competition through the internet. Companies use various avenues on the internet such as social media, company websites, blogs and online retail sites to market and sell their products. Social media platforms and blogs facilitate companies’ communication and marketing activities. On the other hand, organizations use their websites to inform consumers about various updates on their products. In addition, businesses sell their products through various online...
4 Pages(1000 words)Research Paper

Singapore Airlines Case

...Singapore Airlines Case Introduction The success of any organization depends on the quality of services it offers to its customers. Those organizations which are more successful than others have competitive strategies that offer quality services to the market niche. It is therefore very important for organizational leaders to device ways of making their organization remain relevant in the market. In this case, we are going to look at how Singapore Airlines utilizes its management programs like training and performance measurement in order to remain competitive in the market. Elements of SIA’s workforce management program Young crew policy The...
4 Pages(1000 words)Essay

Scheme Evaluation & Future direction the DDE scheme were much higher, it was expected that the proposed GroupBased scheme could bring the values very low than were recorded in the study. Having said all these, it will be reiterated that the general scheme evaluation which focused on testing the hypothesis makes it possible to conclude that the study has fully tested the hypothesis and covered all the experimental aspects, particularly in terms of labelling time and label size. 8.7 Further Research Developments and Future Directions Although the GroupBased scheme outperforms similar existing schemes in many aspects, it is not concise in terms of size, which needs further investigation. The novel idea in this thesis is that the GroupBased...
7 Pages(1750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Recommendation of options that are available for Singapore Airlines for their future strategy direction for FREE!

Contact Us