Airlines Limited Service Excellence †Free Samples to Students

Question: Discuss about the Airlines Limited for Service Excellence. Answer: Introduction: One of the most reputed companies situated in Singapore is Singapore Airlines (SIA) who has gained significance for superior quality customer service and well built strategic management. By incorporating Malayan Airlines with Imperial Airways, Ocean Steamship Company in Liverpool and Straits Steamship Company, SIA was formed in the year 1937(Singapore Airlines, 2017). Since then SIA had been able to consider its available resources and gained competitive advantage over its competitors. With technical support of IATA and British Commonwealth Airlines, SIA was able to expand its business. Douglas DC-3s was introduced in companys fleet in the year 1957 after which the company became public and was given the name Malayan Airlines in year 1957. Singapore, Malaya, Sarawak and Sabah formed a federation in the year 1963 after that the company was renamed as Malaysian Airlines. Then in the year 1966, the company was finally given the name of Singapore Airlines after Singapore got detached fro m the federation(Sustainability Report FY2015/16, 2016). Then after, SIA made its headquarters in Singapore. The PESTLE analysis made of SIA will help in getting detailed information regarding companys external factors which are indirectly related to the firm. The threats and opportunities relating external factors will be analysed while evaluating opportunities behind it(Frue, 2017). Political: Politics factor has always been in favour of the company as the carrier of the company carries nations logo, governmental support is always with SIA. The threat here is instability in countries government may affect SIAs business as the flight takeoffs may have to undergo several legal verifications and suspiciousness of securities. The cost of operations has chances of increment with reduced number of passengers in politically affected areas(Pestel and Five Forces analysis of Singapore Airline, 2015). Economic: Economically Airline industries have to face barriers as their operations are related to many countries economies. The most important factor that affects the company is fuel prices i.e. if the economic conditions of countries leverages fuel prices, companys overall pricing strategy will be hampered. Also if economies goes down, it may directly hit the sales of the company as people then prefer not to make longer journeys for tourism purposes. Although SIA uses best pricing strategy, any steep change made in countries GDP are always a threat for the company. Social: Travel and tourism companies have to face many challenges socially as their operations are not limited to one country only. While travelling in countries, different language as well as different cultures has to be faced by companys employees. SIA here faces threats as most of the companys staff is not known to many languages and to face people from different countries becomes quite challenging. The flight attendants are required to understand the demands and problems of passengers and if it is not met, they might face trouble in flight. Technological: Technological factors are immensely substantial in industries where top marketers are involved. People who travel in high class section of flights demand for superior interiors and more comfortable journeys. Thus, in order to provide with high class journey with comfortable environment, airline industries are bound to spend huge amount for technological innovations and make their in flight support more securable. While considering about SIA, it holds youngest form of fleets i.e. latest and newer technologically enabled aircrafts can be found in its collection. The company is still working on its improvements by introducing recliners, headsets, entertaining gadgets and cosy beds which get easily attracted by customers. SIA official websites provides customers with an insight to what they demand and in different budgets(Jurevicius, 2013). Legal: Legally, the government regulations and country laws have always affected airline industries operation. In order to make travelling to other countries, especially while making travel to newer country, SIA has to undergo many paper works and abide by country laws. Different countries follow dissimilar laws and to maintain them becomes quite challenging. Therefore in order to sustain the market, SIA is highly depended on legal and governmental support. Environmental: Climatically airline industries are more prone to disturbances created due to bad weather. The climatic disruptions in countries it deals in like flood, earthquake, drought, etc. can make cancellations of flights. Travelling gets reduced in affected areas which might affect commercial aspects. The increasing contemplation in corporate social responsibility by todays industries has impacted SIA. The company here lacks some reputation as the company has been seen slow in responding and enabling suitable CSR. More customers demands for environmental friendly travelling which has become major concern for big companies(Together We Grow: Environmental Report, 2011). Five force analyses is one of those management tools that helps to identify the external forces of companies which can be further evaluated to bring enhancement in operations. In Singapore Airlines, Five force analyses has been made that may assist its management to evaluate future opportunities and threats that comes in the way of companys future growth path(Chan, 2011). Threats of new entrants: This force relates to scope of entrances made by new competitors in present market. Since SIA has got great prominence in airline industry in Singapore, this force seems weaker. The extensive governmental support and good quality service providing feature makes other entrants difficult to beat SIA. Public support is also gained by company as it is nation supported organisation while having a logo with countries flag itself. One another reason that adds difficulty for new entrant is that the government does not want to add many flights which can create clogging of airports and atmosphere as it may increase air congestion level which impacts global warming. Singapore basically deals in long travelling and thus threat relating long haul is weak. But new entrants that targets short distances travelling can succeed in entering present market(Roll, 2017). Bargaining power of customers: This force in which customers bargaining power is measured seems stronger for SIA. In Asian regions many airline industries are present that provides superior services along with few of them who provides cheaper rates. The increasing awareness of internet and social medias sites have also affected the companys sales as people makes comparisons between available companies before making decision regarding their journey. Lesser to no switching cost also drives customers to change their service operators within no time. Bargaining power of suppliers: This is also a strong force for SIA as airline industries are highly depended on fuel and manufacturing companies. According to Potter, the business seems to have weak position if suppliers bargaining power is high. SIA has to make oil purchases from its suppliers under their conditions and if any hike is seen, the companys profits are affected. SIA purchases its major aircrafts like Boeing and Airbus from other manufacturers. They seem to supply aircrafts along with its parts in higher prices since there is limited number of suppliers. Also after sale services provided by them are very expensive that shows that SIA has threat from its suppliers(GALLEZO-ESTAURA, 2016). Competitive rivalries: Presence of enough competitors, who provides much elevated service to travellers, has always been threat for SIA. The only strategy that saves company here is improvement in service standards and introduction of cost cutting in prices. In few routes like Kangaroo route, SIA has a monopoly which gives tough competition to its competitors along with providing services in those areas which has got more legal complexities(Sustainability Report FY2015/16, 2016). Threat of substitute: Potter has defined this factor as an extent of threat under which any new product is replaced by other companys products. For SIA, governmental support has enabled the company to get easy permissions for connecting with different countries in far distances. However shorter distance travelling has been a matter of concern. For travellers other substitutes like railways and luxury busses have been a good option where price factor is examined. Recomendations SIA has got all the capabilities to rule airline industry, although there are few areas that can be improved to enhance its operations. Firstly SIA needs to work on its CSR strategies that are presently seen negligible in companys management(Bice). If the company shows increase in respect towards environmental safety, it may gain advantage over its customers as well as government. Secondly, the company can introduce various discount schemes or reward systems to attract its customers so that switching of industry from customer side is eliminated. Adding on points while purchasing tickets and thereafter giving rewards may keep SIA customers attached with the company. Thirdly, the company needs to work on its staff training and recruitment. Since the company lacks efficiency in its staffs cultural diversifications, SIA can introduce training programmes where different languages and education about cultures may be provided(Sustainability Report FY2015/16, 2016). This may help them to con vey easily with passengers and also be liked by customers while speaking to them in their languages. The fourth recommendation for SIA will be to diversify its business into manufacturing units. Since the company has to face threats from its suppliers, SIA can establish its own manufacturing units as well as service teams that will also help in reducing companies costs. Conclusion After making analyses of SIA it can be said that the company holds a strong position in airline industry(Southerden, 2017). The strategic management of the company has enabled SIA to give high returns to its stakeholders while enhancing travel and tourism industry. The company provides additional services to its customers by making recommendations for hotel and destination booking while arranging convenience for them(AYOB). SIA has always shown its advancement in procuring latest technology methods and newer fleet of aircrafts which have always attracted its customers. The only part where the company can make improvement is to introduce environmental security as well as in flight support which can ensure further growth of the company in positive direction. On concluding note it can be said that SIAs mission to provide superior service to its customers has been seen in its operations. References AYOB, A. M. (n.d.). SINGAPORE AIRLINES LIMITED: BUILDING A CULTURE OF SERVICE EXCELLENCE . Retrieved from https://mahdzan.com/papers/sia/singapore_airlines.pdf Bice, S. (n.d.). CORPORATE SOCIAL RESPONSIBILITY AND IMPACT ASSESSMENT: TWO KEEPS TO THE SAME CASTLE? Retrieved from https://accsr.com.au/csr-and-sia-same-castle/ Blackburn, M. (2016). PESTLE analysis. Retrieved from https://www.linkedin.com/pulse/pestle-analysis-mike-blackburn Chan, I. (2011). Singapore Airlines Breaks into Budget Carrier Industry. Retrieved from https://blogs.ubc.ca/ivanchan/2011/11/24/singapore-airlines-breaks-into-budget-carrier-industry/ Frue, K. (2017). PESTLE Analysis in Strategic Management. Retrieved from https://pestleanalysis.com/pestle-analysis-in-strategic-management/ GALLEZO-ESTAURA, K. (2016). Will cheap jet fuel costs continue to save Singapore Airlines from declining revenues? Retrieved from https://sbr.com.sg/aviation/exclusive/will-cheap-jet-fuel-costs-continue-save-singapore-airlines-declining-revenues Jurevicius, O. (2013). PEST PESTEL Analysis. Retrieved from https://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html Odessa, C. (2017). Charts and Diagrams. Retrieved from https://www.conceptdraw.com/samples/marketing-sale-diagrams-charts-diagrams Pestel and Five Forces analysis of Singapore Airline. (2015). Retrieved from https://www.ukessays.com/essays/marketing/pestel-and-five-forces-analysis-of-singapore-airline-marketing-essay.php Roll, M. (2017). Singapore Airlines An Excellent, Iconic Asian Brand. Retrieved from https://martinroll.com/resources/articles/strategy/singapore-airlines-an-excellent-asian-brand/ Singapore Airlines. (2017). Retrieved from https://www.singaporeair.com/en_UK/in/home Southerden, L. (2017). Airline review: Singapore Airlines economy class, Brisbane to Singapore. Retrieved from https://www.traveller.com.au/flight-test-singapore-airlines-economy-class-brisbane-to-singapore-gumpxu Sustainability Report FY2015/16. (2016). Retrieved from https://www.singaporeair.com/saar5/pdf/Investor-Relations/Annual-Report/sustainabilityreport1516.pdf Together We Grow: Environmental Report. (2011). Retrieved from Singapore Airlines: https://www.singaporeair.com/pdf/media-centre/report2011.pdf