Sample Student

Presentation Slides

Strategic Management
Case Analysis
Dr. Paul N. Friga
2005
 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
 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
 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
 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
External 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
What is really SIA has the best cost structure for premium level service but losing ground
important?
Strengths:
Reputation and brand image of the Singapore Girl
Young fleet and excellent training facilities and programs
Internal Extensive regional and international route network

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
 SIA is the largest Asia-Pacific
airline
Capacity (Available Ton Kilometres)

20000

15000

10000

5000

0
1999

SIA Cathay Qantas Thai Malaysia

Source: Singapore International Airlines Case pp.

 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
 There are three key questions
that should be addressed
Question Option / Decision Pros Cons
Hypothesis Criteria

Invest in VA? Yes Return on Enables a lower Competes with

Investment cost product Star Alliance
offering Limited resources/
Access to younger opportunity cost
demographic May affect
Complimentary reputation
routes
Overall Strategy? Low Cost (rather Long Term Head to head with Lose reputation as
than Differentiation) Profitability new competitors high quality
Seems to be the provider
trend in the U.S. Goes against
Fuel costs are infrastructure
rising Differentiation
may be the only
way to win
Stay in Star Yes Market Share Cross-selling Lose control of
Alliance? Growth opportunities to scheduling
new customers May compromise
Access to the consistent
additional routes quality of service
quickly
 While SIA has a higher OM,
competitors are not far behind
Operating Margin - Percentage

30

20

10

0
1999

SIA Cathay Qantas

Thai Malaysia BA
KLM United American
Source: Singapore International Airlines Case pp.
 Asia is projected to be a key
market moving forward
Projected Passenger Kilometres -
billions

1500

1000

500

0
2001

Africa Middle East L.A. Asia Europe N.A.

Source: Singapore International Airlines Case p.

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

Alliances dont deliver Invest in VA (but go high end)

Costs get too high Stay in Alliance
Other airlines act first Expand high quality labour
pool

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
 The growth rate through
2007 is estimated to be high
Regional Route Growth - %

8.5
8
7.5
7
6.5
6
Growth

NE Asia-SW Asia Eur - NE Asia NA - SE Asia

Source: Singapore International Airlines Case p.