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 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 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

External

What is really important?

Internal

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 / Hypothesis
Yes

Decision Criteria
Return on Investment

Pros

Cons

Invest in VA?

Enables a lower cost product offering Access to younger demographic Complimentary routes Head to head with new competitors Seems to be the trend in the U.S. Fuel costs are rising

Competes with Star Alliance Limited resources/ opportunity cost May affect reputation Lose reputation as high quality provider Goes against infrastructure Differentiation may be the only way to win Lose control of scheduling May compromise the consistent quality of service

Overall Strategy?

Low Cost (rather than Differentiation)

Long Term Profitability

Stay in Star Alliance?

Yes

Market Share Growth

Cross-selling opportunities to new customers Access to additional routes quickly

While SIA has a higher OM, competitors are not far behind
Operating Margin - Percentage
30 20 10 0 1999 SIA Thai KLM
Source: Singapore International Airlines Case pp.

Cathay Malaysia United

Qantas BA American

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

Risks

SIA should set a strategic vision to be the leading global premier service airline

Implementation

Alliances dont deliver Costs get too high Other airlines act first

Invest in VA (but go high end) Stay in Alliance 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.