Marketing Mix Essay Example for Free

Marketing Mix Essay1.1 Background to the Report strategical man jump onment refers to analysing the important initiatives which be taken by the top management of the alliance on behalf of the owners. It successfully extends a track of sidereal day- to- day activities which ar going into an organization to organise the resources and plan a outline which the organization should follow in score to get benefit in the business. It provides a direction to the organization and is closely related to the sphere of organizational structure. (Hambrick, 2007) In this report, strategic management of capital of capital of capital of capital of capital of Singapore halolines is critically evaluated on the basis of several strategies apply by them. This not only gartered the company in achieving the results precisely also enabled SIA to expand itself in the orbicular market as well as establish a refreshed base in the in the altogether expanding countries. 1.2 Aims of the research are To gravel a good to a lower placestanding close what involves in Strategic management. To develop knowledge about constituents of strategic management process. Critical assessment of strategies of a selected organization. To throw some wake on the ingrained and external surroundings of selected organization.Gap analytic thinking for Singapore Airlines 2. Analysis of internal exemplar of Singapore Airlines Capability to restore competency in order to attain similarity with the change in business environment are termed as dynamic capabilities. This is done by reconfiguring, mixing and adjusting external and internal resources, skills and abilities (Teece et al., 1997).2.1 Resources Connecting strategic resources and core strategies is defined as configuration by Hamel where core competencies and assets, process and assets are organised and combined in order to maintain strategies (Hamel, 2002). Resources are divided into two categories, tangible and intangible resources of Singapore Airlines. They are further divided into sub categories on the basis of which it can be assessed that core strategies and strategic resources were well connected.2.2 Capabilities On the basis of broad variety of competency and technological expertise in impudently invented planes, Singapore Airlines effectively fascinated more airlines clients to its take place management sedulousness, securing its place as major fleet management facility providers of the world. It also persists on expanding its potential by means of strategic joint ventures. For instance, a joint venture agreement is signed by SIA with Panasonic Avionic Corporation in order to effect a facility for livelihood, repair and operation of communication and in- evasion entertainment. Facility will be based in Singapore and components will be generated by Panasonic Avionics (Singapore Airlines, 2011).2.3 Core Competencies Core competencies of Singapore Airlines consist of the interpersonal talents of its flight assistants and ability of its top direct management in planning strategies for marketing. They endeavour to make flights as relaxing as possible (Singapore Airlines, 2011). 3. Analysis of external framework of Singapore Airlines PESTEL AnalysisFactorsSingapore AirlinesPoliticalUnpredictable, SIA reject Air India wisecrackEconomicSIA offer created trouble in Hong KongSocialSIA Airplane crash in TaiwanTechnologicalQuick technology implementationEnvironmentalLaunch of A380 Air careerLegalPassengers asylum4. Five forces of porter Porters five forces model deliver a well-liked external analysis framework for Singapore Airlines. After analysing the internal and external framework of Singapore Airlines, S.W.O.T analysis is performed in order to assess SIAs capabilities, followed by the critical analysis of corporate and business level strategies.5. S.W.O.T. Analysis Strengths Singapore Airlines has an expanded geographical reach. They operate in a make sense of reasons like US, due west Asia, Europe, Africa, South west Pacific and East Asia. They run flights to 63 cities globally, whereas its division Silk Air is offering flights in 12 countries with 39 cities. Considerable amount of revenue is generated by SIA gathering with its airline operations around the globe. Equally spread and diversified revenue base guarantees that group is not dependent on oneness geographic market for most of its profits, by which business risk decreases significantly. Though, SIA is basically a passenger airline, but the group is also offering various specialized services like engineering services, airline operations, freight rate operations, etc. which are providing them stability by diversifying business threats. Additionally, SIA group has a policy of maintaining young aircraft fleets, which take place lower carbon emissions and pee-pee less burning of provoke per kilometres. This is also strength of SIA group as this factor helps in keeping maintenance follows le ss, along with reducing performance related gage concerns (Heracleous, 2006).Weaknesses SIA faced extremely competitive market in its initial phases. Many countries restricted air-route access to cherish national airlines from other competitions. SIA worked hard to get access rights for many important airports (eg. Heathrow, Manchester) (Reddy, 2004). Various competitive regimen keep on investigating about Singapore airlines and its subsidiaries. For example, South Korea, Canada, Australia, South Africa and European Union investigated about SIA group in order to determine whether the rates, surcharges, and other characteristics of cargo service were determined lawfully or not. In financial year 2012, SIA paid administrative penalty to South African competition relegation (2.8millionUSD) as settlement. Legal expenses connected with the inquiry and court case and time spent on this relinquish left an impact on SIAs business and operations.Opportunities Singapore Airlines with its well-built base of operations and proficiency, is well displace to reap advantages from the worldwide boom in tourism industry. This would help SIA Group to produce extra profits. Also, group is focusing on joint ventures and strategic operational alliances to add opportunities for senesceth and sales. SIA entered into partnerships (jetblue Airways) and code-sharing agreements (Virgin Australia/ Virgin America) in order to increase growth opportunities. For instance, SIA signed code share agreement with Virgin America in celestial latitude 2012 (SIA, Virgin America reach code-sharing agreement, 2012). SIA will add its SQ airline code to flights of virgin which are America-operated do Washington DC, Las Vegas, Seattle, Chicago, etc Furthermore, SIA group has launched Scoot which is a low cost carrier in order to grow its existence in low cost flight market. This step will enable SIA group to pull more groups of customers which will increase its growth and revenues.Threats Competi tion is very high in the airline industry. Reputation, safety records, customers service, flight schedules, fares, code-sharing relations are few parameters of competitions. SIA faces straight competition with other carriers on its route. Cathay Pacific, japan airlines, United Continental,AMR are few of its competitors. Extreme competition on the basis of price matching, promotions, discounting, capacity, etc. affects operational margins of SIA. Also, Natural disasters can have affect on SIAs operations effecting the cash flows and financial state. Moreover, encouragement in the prices of jet fuel can increase operating costs, which can affect the profitability (Heracleous, 2006).6. Strategies use by Singapore Airlines 6.1 Corporate level Strategies Diversification Companies tend to grow their full potential in economies which are developing, with the help of strategic diversification. Strategy of diversification is followed by SIA at the corporate level. SIA group has number of p rimary companies with key companies being SIA Cargo, SIA Engineering Company and Silk AIR. They also have number of associated companies. Its Airlines divisions which consist of 49% ownership of Virgin Atlantic, 32 % of Tiger Airways and entire ownership of local carrier Silk Air gallop basic segments of customer in the industry. This was a long-term strategy (Singapore Airlines, 2008).Benefits of using diversification by Singapore Airlines is to enable passing of learning and control quality and side by side reaping cost synergies. Subsidiaries shell out as sources of learning and also as progress arena for skills of management and corporate rather than divisional viewpoint with job rotation. Profit margins are better in related operations (like aircraft maintenance and catering) on comparison with airline business itself as structure of industry in those sectors is more favourable. (Singapore Airlines, 2008).Strategic Alliances In April 2000, SIA joined Star Alliance as a step of its internationalization strategy. In the trio main airline alliances, Star alliance hold its placewith Oneworld and Skyteam. Also, In India and China, SIA Group were investing through planned deals during this time. Deals were done with local services like engineering services, cargo85 divisions, catering and airport services. SIA is also under a code share contract with Malaysian Airlines. These airlines are offering up to 14 flights in a day between Kuala Lumpur and Singapore (Doganis, 2006).For the expansion of the company, strategic alliances are becoming more plebeian tool. SIA used strategic alliances for increasing competitiveness in the global and domestic markets. This helped SIA in developing new business opportunities with the help of new services and products. This resulted in the expansion and growth of company globally. An alliance is a business-to-business relationship (Jeffrey, 2004).6.2 Business level strategies Differentiation strategy Premium services were s uccessfully delivered by Singapore Airlines to those customers who are very demanding and this can be termed as achieving speciality strategy. This helped Singapore Airlines in identifying that different customers are broadly scattered, with varied needs and sufficient spending power. If an organization is unique in something which is valuable to its customers at the same time, it differentiates itself in the marketplace (Chamberline Robinson, 1996). If an offer is valuable for the customers, they tend to be less sensitive to characteristics of competing suggestions where cost may not be one among these characteristics.This accomplishment of SIA challenges viewpoint of Porter that cost leadership and differentiation strategies are equally exclusive strategies (Porter, 1985). Differentiation strategy allowed Singapore Airlines to insulate itself partially from rivalry competitors of same industry. Customers of differentiated services were less sensitive to prices and they started preferring SIA over other airlines, that is, SIA succeeded in gaining customer loyalty (Hitt et al., 2007). SIA conservatively applied this strategy and played safe by delivering premium services appropriately without over-proliferating them.leadership strategy Singapore Airlines has considerably greater effectiveness than its peer group, which is a crucial aspect of an effective leadership strategy. They have young fleets which have lower maintenance costs they are fuel efficient and have effective hedging of fuel. Labor cost of SIA is comparatively low (16.6%) than average of all prime airlines (20.1%) (Singapore Airlines, 2008). Singapore Airlines have youngest fleets in the airline industry, which is worth considering. Their fleets have average age of 75 months, and average age of half of airline industry fleets is 163 months. SIAs fleets are much efficient. Younger planes are quiet, comfortable and fuel efficient. They have low repair, service and maintenance costs which are all part of its leadership strategy. 7. Recommendations charge in mind the weaknesses discussed above, some recommendations for Singapore Airlines come into light like keeping company cultivation confidential. SIA paid huge fine as various companies successfully investigated about SIAs internal facts and figures. Also, they need to keep a close eye on its competitors who try to gain lead in the competition on the basis of price matching, promotions, discounting and capacity.8. Conclusion A variety of strategies were executed by Singapore Airlines by which the company is successful for a considerable time. By keeping a track on industrial environment and the macro environment, Singapore Airlines can uplift its capabilities to secure future success. However, as there are uncertainties in the environment and market keeps on altering quickly, it is crucial to monitor and carefully consider all the strategies forrader implementation. Singapore Airlines potential to become accustomed t o change will positively help the company..to..strive..on..with..competitors..in..the..future.9. References Chamberline. E, Robinson, J. (1996). surmisal of Monopolistic Competition, What is Perfect Competition ? Quarterly Journal of Economics, Vol. II, no.4, 431- 433Doganis, R. (2006). Outlook, The Airline business ed. 2, Routledge, Abingdon.Hambrick, D. C., (2007). What is strategic management really? Hamel, G. (2002). Leading the Revolution How to Thrive in Turbulent Times by qualification Innovation a Way of Life. New York Plume Books.Heracleous, L. (2006). Flying high in competitive industry Cost effective service at SIA. Mc Graw hill.Hitt, M., Hoskisson, R., Ireland, R. (2007) Management of Strategy Concepts and Cases.7th ed., Thomson South-Western, USAJeffrey, R., (2004). Strategic alliances Theory and evidence, Oxford university press, US, 2004.Porter, M.E.(1985). Competitive Advantage. New York Free Press, 6-22.Reddy, A. (1994). Total quality marketing the key to regain ing market shares. Westport, CT Quorum Books.SIA, Virgin America reach code-sharing agreement (2012, celestial latitude 15, Saturday). Business pg30..Retrieved..from http//imcmsimages.mediacorp.sg/CMSFileserver/documents/006/PDF/20121215/1512BZC032.pdfSIA (2012). Virgin America reaches code-sharing agreement, December 15, 2012.Singapore Airlines, (2008). Annual Report, Singapore.Singapore Airlines, (2011). Annual Report, Singapore.Teece, D., Pisano, G., and Shuen, A.(1997). Dynamic capabilities and strategic management, Strategic Management Journal , 18, 509-533. reachescode-sharing agreement (2012, December 15, Saturday)