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Sample Student Presentation Slides -

Strategic Management Case Analysis
Dr. Paul N. Friga
2005
Dr. Paul N. Friga, 2005 2
Overview of Document
This slide deck exemplifies a student presentation
of the analysis of a case study for a general
management or strategic management course
The case used in this study is: Singapore
International Airlines: Strategy with a Smile
(Thunderbird, 2001)
There are multiple ways to present a case story
this is only one example
The storyline is presented first, followed by the
supporting data for the high-level conclusions
Dr. Paul N. Friga, 2005 3
Singapore Airlines is in a tough situation
but opportunities for global leadership exist
Singapore International Airlines (SIA) is facing
dramatic environmental shifts, increasing
competition, and changing customer demand
Several strategic options exist related to how SIA
can improve its competitive positioning for the long
term
I recommend that SIA pursue a high-end
differentiation strategy based upon unique
positioning as the premier long-distance airline
Dr. Paul N. Friga, 2005 4
Singapore Airlines is in a tough situation
but opportunities for global leadership exist
Singapore International Airlines (SIA) is facing
dramatic environmental shifts, increasing
competition, and changing customer demand
Several strategic options exist related to how SIA
can improve its competitive positioning for the long
term
I recommend that SIA pursue a high-end
differentiation strategy based upon unique
positioning as the premier long-distance airline
Dr. Paul N. Friga, 2005 5
The environmental analysis
suggests some important issues
What is really
important?
External
Internal
General Environment:
Globalization is increasing demand for international air travel (esp. to Asia)
Political changes include the increase of free trade markets (like Singapore)
Economic conditions are important as recessions cause price sensitivity
Industry:
Consolidation in the airline industry is increasing to enhance scale and scope
Alliances are the hottest strategy tool as companies seek global connections
Customers are increasingly price sensitive but business segments are loyal
There are little to no substitutes for international air travel
Competition:
Key domestic competitors are Japan Airlines, Thai Airways, and Cathay
Key international competitors are United, KLM, and British Airways
SIA has the best cost structure for premium level service but losing ground
Strengths:
Reputation and brand image of the Singapore Girl
Young fleet and excellent training facilities and programs
Extensive regional and international route network
Weaknesses:
Increasing difficulty supplying high quality labor at low costs (esp. Singapore)
Buttoned Down image may not be attractive to younger demographic
High cost structure needed for high quality service is difficult to change
Dr. Paul N. Friga, 2005 6
SIA is the largest Asia-Pacific
airline
0
5000
10000
15000
20000
1999
Capacity (Available Ton Kilometers)
SIA Cathay Qantas Thai Malaysia
Source: Singapore International Airlines Case
pp. 208-209
Dr. Paul N. Friga, 2005 7
Singapore Airlines is in a tough situation
but opportunities for global leadership exist
Singapore International Airlines (SIA) is facing
dramatic environmental shifts, increasing
competition, and changing customer demand
Several strategic options exist related to how SIA
can improve its competitive positioning for the long
term
I recommend that SIA pursue a high-end
differentiation strategy based upon unique
positioning as the premier long-distance airline
Dr. Paul N. Friga, 2005 8
There are three key questions
that should be addressed
Question Option /
Hypothesis
Decision
Criteria
Pros Cons
Invest in VA? Yes Return on Investment Enables a lower cost
product offering
Access to younger
demographic
Complimentary routes
Competes with Star
Alliance
Limited resources/
opportunity cost
May affect reputation
Overall Strategy? Low Cost (rather than
Differentiation)
Long Term Profitability Head to head with
new competitors
Seems to be the trend
in the U.S.
Fuel costs are rising
Lose reputation as
high quality provider
Goes against
infrastructure
Differentiation may be
the only way to win
Stay in Star Alliance? Yes Market Share Growth Cross-selling
opportunities to new
customers
Access to additional
routes quickly
Lose control of
scheduling
May compromise the
consistent quality of
service
Dr. Paul N. Friga, 2005 9
While SIA has a higher OM,
competitors are not far behind
0
10
20
30
1999
Operating Margin - Percentage
SIA Cathay Qantas
Thai Malaysia BA
KLM United American
Source: Singapore International Airlines Case
pp. 208-209
Dr. Paul N. Friga, 2005 10
Asia is projected to be a key
market moving forward
0
500
1000
1500
2001
Projected Passenger Kilometers -
billions
Africa Middle East L.A. Asia Europe N.A.
Source: Singapore International Airlines Case
p. 210
Dr. Paul N. Friga, 2005 11
Singapore Airlines is in a tough situation
but opportunities for global leadership exist
Singapore International Airlines (SIA) is facing
dramatic environmental shifts, increasing
competition, and changing customer demand
Several strategic options exist related to how SIA
can improve its competitive positioning for the long
term
I recommend that SIA pursue a high-end
differentiation strategy based upon unique
positioning as the premier long-distance airline
Dr. Paul N. Friga, 2005 12
Singapore Airlines should
strive for unique positioning
This is a critical time as technology and global reach
require a high-end international access airline
SIAs best strengths are high end service and global routes
Going low-cost will damage long-term profit potential
SIA should set a strategic
vision to be the leading global
premier service airline
Risks
Implement-
ation
Alliances dont deliver
Costs get too high
Other airlines act first
Invest in VA (but go high end)
Stay in Alliance
Expand high quality labor pool
Dr. Paul N. Friga, 2005 13
The growth rate through 2007
is estimated to be high
6
6.5
7
7.5
8
8.5
Growth
Regional Route Growth - %
NE Asia-SW Asia Eur - NE Asia NA - SE Asia
Source: Singapore International Airlines Case
p. 211