Case Analysis on Airline Industry

Case Analysis on the Article, Ў§Competitive

Turbulence in the Airline IndustryЎЁ

(Segmentation, Targeting

and Positioning)

EXECUTIVE SUMMARY

Airline industry has 4 sectors identified:

Full-service, Budget, Limited-service, Premium-service

Segmentation and Targeting:

Psychographic, Behavioral, Geographic and Demographic

Positioning:

Value proposition matrix (more for more, less for less, etc.)

Conclusion and Recommendations:

„« SIA in marginal value proposition position, needs to boost promotions and sales pitch.

„« Low-cost carriers have good customer attraction value, must boost customer retention through loyalty programmes.

„« SIA must have clear positioning, i.e., Ў§The Best Airline in SEAЎЁ

TABLE OF CONTENTS

page

Title page ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK. 1

Executive Summary ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK... 2

Table of Contents ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK... 3

Introduction ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK.. 4

Product Analysis ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK. 9

Positioning strategy ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK 9

Segmentation and Targeting of Customer groups ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK 12

Conclusions ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK. 17

Recommendations ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK.. 19

Summary ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK.. 21

Bibliography ЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎKЎK. 22

INTRODUCTION

As technology rapidly develops in the 21st century, so are goods and services in the competitive market. The airline industry in Asia is one of those undergoing Ў§a tidal wave of changesЎЁ, causing a drastic alteration in the business landscape. Some of these changes were not heard of before, such as nonstop air travel from Singapore to USA, and even the kinds of entertainment systems provided onboard the plane.

Moreover, the grueling battle between prolific companies to compete for customer attraction and in the end, loyalty, resulted to further segmentation of the airline industry. Apart from the established full-service airlines (i.e., Singapore Airlines), three other market positions budded. They are: budget airlines, limited-service airlines, and premium-service airlines.

In 1972, Singapore Airlines (SIA) was created from the divergence of Malaysian-Singapore Airlines Ltd. A year later, it came to be a full-service airline with destinations as far as Australia and London. It has remained competitive by being always on the money when it comes to equipment acquisition and the latest in aircraft technologies, as well as the interior aesthetics of the plane and good entertainment of the riding passengers.

However, the dynamics of the airline business has always been fast. And the people behind the works get smarter. Can Singapore Airlines stay at the height of its glory by giving exactly what customers really expect to get?

The cultural and social impact due to the rapid changes of the means of moving about followed the trend of the airline industry, being the fastest way to reach a certain place at an agreeable cost.