Threat of New Entrants: Threat of new entrants for Singapore Airlines is weak. Since Singapore Airlines is a government owned airlines, they have lots of advantage. Singapore Airlines has by far a huge amount of capital outlay, Besides that Singapore Airlines has received multi awards for almost everything, known worldwide, and provides great service to their passengers. Singapore Airlines has dominated the aircraft world for long haul passengers, making new entrants hard to compete with what Singapore Airlines has to offer. The Intensity of rivalry: The intensity of rivalry for Singapore Airlines is always fluctuating from low to high.
American Airlines has a few strengths that puts the company above their competitors. Good hubs, loyalty programs, strong brand image, the largest airline fleet, good maintenance and infrastructure standard, are just to name a few. The regions dominant U.S. carrier came along with the company’s innovative mind to buy routes that encourages spreading hubs in the most tourist attracted places. Hubs increase rewards become broader redeeming meaningful awards as you fly across the globe with American. American Airlines AAdvantage program awards miles and Elite Qualifying Dollars for every airline affiliated with the oneworld alliance.
Opening up of industry and availability of financial resources, reduces this barrier. Strong branding forces new comers to invest heavily on attracting customers from the present airlines. However, branding has not been very effective in keeping the customers in airline industry. Thus threat of new entrants in airline industry is high particularly in low-cost segments. Only very high efficient operations can keep the new entrants out of industry.
Even though the industry remains intensively competitive now, most the carriers have a route system well suited to their individual strengths, and fewer carriers have a route system well suited to their individual strengths, unlike fewer carriers are on the verge of bankruptcy or struggling to maintain the turnover. Most airlines pursue the total market strategy that is an attempt that is meant to provide services for significant parts of the business, leisure and freight segments. Whereas, the business segment requires a wide route network with good interconnections and a high flight frequency , and thus costly products. Flexibility is important in the unstable economy, Delta has long introduced a non-expiring policy for its miles, and Air France was the first European to adapt this changes as acquired by its alliance with Delta. For example, Delta has started a strategic alliance with Aeromexico, Air France and Korean Air.
Opportunities Premium Economy Finally The roll out of the much needed premium economy class in Singapore Airlines is expected in the second half of this year. Singapore Airlines has resisted introducing this class even though it is a matured product offered by many airlines for sometime. The premium economy class should boost competitiveness as Singapore Airlines main competition on some of its European and Australian routes are offering this product, which seems to have become a hit with corporate passengers. According to CAPA (2014, para. 45), the revenue which this class of travel could bring if introduced on the right routes will give Singapore Airlines yields a much need boost.
In airline business, airbus A380 is doing much better than Boeing 787-8 mainly because of the size of their airplane. The other reason is that Airbus has a strong hold in Asia than Boeing, which means they have captured a big chunk of market share from Asia because of the huge population. The main reasons for competition between the two companies are “ Hub and spoke system “ and “ Point to point traffic”. In Hub and spoke system, the passengers are being brought to a Hub by Feeder lights from various small airports. From Hub, they will be put into the big plane towards their journey for final destination.
Singapore government denied the plan and confronted Air Asia saying its not her national interest. The main reason for their denial was the government buses would loose their business if Air Asia provided such services. ¬ Increase in operating cost Air Asia had high altitude of competition with the existing aviation players both in domestic and international. To keep the business expanding and the brand name Air Asia provided many value added services to the customers like the internet check in where one can print the boarding pass online, attractive travel insurance packages, hotel and car rental services, Citibank Air Asia credit card. To maintain this type of customer services investment is high.
The union member called for the airline to the number of cabin crew to serve a higher number of passengers in economy class seating than first-class seating. However, looking at 10-abreast holdouts like Cathay and Singapore Airlines can be a disadvantage to Cathay. As there are not enough passengers willing to pay a high-class premium for Cathay. And passengers are willing to pay more for 9-abreast either than that they are not willing to pay enough or are not numerous enough. As Will Horton, a H.K.
University of Wollongong in Dubai Etihad Airways Marketing Strategy Oji Emuejerhi Deri Student ID: 4224036 TBS 904 Marketing Management Date: 30.06.2015 Table of Content Contents Executive summary 3 Introduction of Etihad Airways 4 Etihad Competitors 4 Etihad Marketing Strategy 5 SWOT Analysis. 9 PESTEL Analysis 11 Porter’s Five Forces 14 Conclusion 18 Recommendation 18 Implementation 19 References 20 Executive summary Etihad airway is one of the growing airline in the Middle-East and within a record time of it operation its has become the youngest airline operator globally. Etihad airway success is backed by the government of Abu Dhabi which has a share ownership of the business. Middle-East has been know by the world as a record
Recommended International Strategies to Improve/Maintain SIA’s Market Position 1. Introduction Despite the airline industry being an undesirable and unattractive industry according to Michael Porter, Singapore Airlines (SIA) have consistently been profitable and have achieved much success with many of their current and even past strategies. The history of SIA, their past and present marketing strategies and their successes will be analysed. Subsequently, this essay will further recommend more strategies for SIA’s future international business. 2.