Sample Student

1

• Sample Student
• Presentation Slides
• Strategic Management
• Case Analysis
• 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

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

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

5
The environmental analysis suggests some
important issues

• 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

External

• 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

What is really important?

• Strengths
• Reputation and brand image of the Singapore
  Girl
• Young fleet and excellent training facilities and
  programs
• Extensive regional and international route network

Internal

• Weaknesses
• Increasing difficulty supplying high quality
  labour 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

6
SIA is the largest Asia-Pacific airline
Source Singapore International Airlines Case
pp.
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

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
9
While SIA has a higher OM, competitors are not
far behind
Source Singapore International Airlines Case
pp.
10
Asia is projected to be a key market moving
forward
Source Singapore International Airlines Case
p.
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

12
Singapore Airlines should strive for unique
positioning
SIA should set a strategic vision to be the
leading global premier service airline
Implementation
Risks

• Invest in VA (but go high end)
• Stay in Alliance
• Expand high quality labour pool

• Alliances dont deliver
• Costs get too high
• Other airlines act first

• 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

13
The growth rate through 2007 is estimated to be
high
Source Singapore International Airlines Case
p.