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Cerbolles, Regine L.

BSA - 4A
Guillen, Gemima A.
Lambayon, John Glenn L.
Mariano, Francis Cedrick T.
Mayormita, Gerryck R.
Pascual, Jedda D.
SWOT Analysis
Singapore Airlines (SIA)

Strengths Weaknesses
1. Automated ticketing or reservation 1. Aggressive expansion of its own
system , handled by their most budget carrier Tiger Airways that
advanced and user-friendly websites, could cut into the profits of the
alongside check-in facilities and company
baggage handling operations that are 2. Shorter shelf life of innovations like
also automated the discontinuation of FAST (Fully
2. Reputable position among award- Automated Seamless Travel) and
giving bodies and airline review other programs just recently
authorities (e.g. Best International implemented
Airline award for the 12th year) 3. Sky-high reputation that attracts
3. Youngest fleet among major customers with higher expectations
international carriers with an average and demands for the best air travel
aircraft age of 6 years and 5 months service
compared to 13 years of other 4. Aggressive investment actions by
airlines management like acquisitions of
4. First-mover advantage in terms of other international airlines that later
latest technology and innovation in on result to write-offs and
aircraft facilities and customer service discontinuation (95% write off in
(e.g. Oustanding Service on the Virgin Atlantic and write-off of 25%
Ground program, Transforming stake in Air New Zealand)
Customer Service, Service 5. Unattractive pricing scheme to leisure
Development, etc.) travellers who comprise a large
5. Self-sufficient training methods of percentage of air travellers in the
pilots and cabin crew (e.g. B747-400 world
flight simulator for training pilots and 6. Large dependence on international
extensive courses for existing and flights
newly-hired staff)
6. Cost-and-profit consciousness and
total involvement among employees
in all the hierarchical levels enabling
them to deal well with conflicting
excellence and profit goals
7. Strong financial position with no
annual loss since inception as an
independent airline
8. Solid commitment to cost-effective
service excellence making it as their
competitive advantage against all of
its competitors
9. Employment of broad benchmarking,
not just against its main competitors
but against the best-in-class service
10. Premium service dictates premium
prices which differentiates them from
other carriers, be it full-service or low-
cost airlines
Opportunities Threats
1. Positive attention of the airline 1. Instability of fuel prices coupled with
industry from government and dollar exchange rate risk and risk of
wealthy businessmen on a global global financial crisis
scale (e.g. Aristotle Onassis from 2. Fierce competition to cover fixed
Greece, among others) costs (84% of total cost) resulting into
2. Demand for air travel expected to lowered quality and predictability
have a 4-5% growth rate in the long 3. High government intervention: SIA
run despite economic turmoil flights to Bangkok restricted from
3. Availability of technologically- other destinations within Thailand,
advanced (fuel-efficient and long- fares dictated by government and
range) high-capacity aircraft like the heavily regulated flights to and from
A-380 plane and next generation the airports of many Asian countries
555-seat megaplane of Airbus in the 4. Emergence of budget airlines such
market as Air Asia, among others which
4. Singapore government’s help in fair occupied regulated routes previously
market access for SIA and dominated by SIA
infrastructure development like the 5. Rapid changes in customer demands
ultramodern Changi Airport for amenities and in-flight experience
5. Major cooperative alliances and 6. Easy access to major Asian
ventures with other airlines from destinations by competitors (e.g.
different parts of the world (e.g. Star opening of new airports in Hong
Alliance, partnership with Lufthansa Kong and Kuala Lumpur, including
and other airlines) new cargo hubs in Manila)
6. Political uncertainty among regional 7. Rising terrorism concerns and spread
competitors (e.g. political unrest in of communicable and epidemic
Thailand) diseases in the global environment
7. Economic prosperity of Singapore (e.g. SARS, bird flu)
affecting SIA as its flag carrier 8. Presence of long-range aircraft
8. Falling regulatory barriers among (17,500 kilometres capability of
countries with the open skies Boeing 777-200 LR) that can bypass
agreement of US and European Singapore hubs and fly directly to
countries dismantling flight Asia-Pacific countries like Australia
frequencies restrictions 9. Presence of higher paying jobs that
9. Availability of in-flight entertainment can potentially encourage turnover
technology and other facilities in the among employees
market (e.g. Dolby Headphone 10. Alternative modes of transportation
Surround, air pressure and humidity that attracts more price-sensitive
simulator, etc.) leisure travellers (e.g. use of cars)
10. Singapore Girl advertisement’s recall
rate of 50% in the Asia-Pacific
11. Favorable relationship with airline
manufacturers like Airbus and Boeing
12. Industrial relations climate in
Singapore is deemed to be less
adversarial in the airline industry
compared to other industries